Loss aversion
nounloss a·ver·sionpronounced LOSS uh-VUR-zhun
Last reviewed 16 April 2026
What does the noun Loss aversion mean?
A cognitive bias where the psychological pain of losing something is roughly twice as intense as the pleasure of gaining the equivalent amount. Losing $50,000 hurts about as much as gaining $100,000 would feel good.
How the noun Loss aversion is used
Loss aversion explains why sellers often reject fair offers that feel like a loss compared to what they paid, even in a falling market.
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Cite this entry
MLA citation: "Loss aversion." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/loss-aversion. Accessed 29 May 2026.
Chicago citation: How to Property. "Loss aversion." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/loss-aversion.
APA citation: How to Property. (2026, April 16). Loss aversion. https://howtoproperty.com.au/definitions/loss-aversion