Loss aversion coefficient
nounloss a·ver·sion co·ef·fi·cientpronounced LOSS uh-VUR-zhun koh-eh-FISH-unt
Last reviewed 16 April 2026
What does the noun Loss aversion coefficient mean?
A numerical estimate of how much more strongly losses are felt compared to gains. Tversky and Kahneman estimated this at approximately 2.25, meaning a loss needs to be offset by a gain roughly 2.25 times larger to feel neutral.
How the noun Loss aversion coefficient is used
The loss aversion coefficient of about 2.25 means you would need to gain roughly $225,000 to offset the pain of losing $100,000 on a property.
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MLA citation: "Loss aversion coefficient." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/loss-aversion-coefficient. Accessed 30 May 2026.
Chicago citation: How to Property. "Loss aversion coefficient." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/loss-aversion-coefficient.
APA citation: How to Property. (2026, April 16). Loss aversion coefficient. https://howtoproperty.com.au/definitions/loss-aversion-coefficient