Loss aversion is a big bias. It can impact us in so many ways – causing us to make strange decisions about money. This bias can actually cause you to become risk seeking when you’re faced with a possible loss and then risk averse when you have a gain on your hands. Yes, that’s quite complex behaviour… so we break it down for you carefully.
Our guest for episode 2 is Dr Greg Davies. He heads up the behavioural finance division of Oxford Risk in the UK and knows a lot about loss aversion. We also chat to him about risk tolerance (our topic from episode 1) because it would be wrong not to!
Useful links:
More about Greg Davies:
- LinkedIn - https://www.linkedin.com/in/gregbdavies/
- New vistas in risk profiling - https://rpc.cfainstitute.org/en/research/foundation/2017/new-vistas-in-risk-profiling
American Economic Association study on the PGA Tour - https://www.aeaweb.org/articles?id=10.1257/aer.101.1.129
Journal of Personality and Social Psychology medical information study - https://psycnet.apa.org/record/1987-22913-001
You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/loss-aversion/
Or watch the video version of this podcast episode: https://youtu.be/9GR4OMTbzIo
Special thanks to everyone who has helped put this series together:
- Our sponsors: IG Markets South Africa
- Producer: Faeron Wheeler of F Creations
- Original music and sound mix: Neil Leachman
- Video and editing: Deetlefs Smith and Matthew Carew
- Hair and makeup: Ida Webster
- Set styling: Michelle Murray of Interiors Etc.
- Voice over: Sizo Mphti
Popular Podcasts
Are You A Charlotte?
In 1997, actress Kristin Davis’ life was forever changed when she took on the role of Charlotte York in Sex and the City. As we watched Carrie, Samantha, Miranda and Charlotte navigate relationships in NYC, the show helped push once unacceptable conversation topics out of the shadows and altered the narrative around women and sex. We all saw ourselves in them as they searched for fulfillment in life, sex and friendships. Now, Kristin Davis wants to connect with you, the fans, and share untold stories and all the behind the scenes. Together, with Kristin and special guests, what will begin with Sex and the City will evolve into talks about themes that are still so relevant today. "Are you a Charlotte?" is much more than just rewatching this beloved show, it brings the past and the present together as we talk with heart, humor and of course some optimism.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.