It is often argued that humans/investors' loss aversion psychological tendency, where losses are twice as painful as an equivalent monetary gain is psychologically rewarding, is irrational. It's not. This asymmetry is perfectly rational (thread continued below).
If you go bankrupt, it seriously endangers the ability to ever make future gains. There are tons of reasons why loss aversion is rational. Above all, it exists. Economists with their heads up their own asses.
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Exactly - see my second post I added on the declining marginal utility of money.
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Yup, thought of that one as well. If you don't know why something is the way it is, you ought not to call it irrational or call for its removal. That's what economists are doing here. Time to rewrite the entire Kahnneman Tversky hagiography.
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