Dread Aversion

Likewise, if your neophilia leads to impulsivity, deliberately add time to make a decision. This can not only affect the review and ultimately the results, but it will also contribute to the stress and anxiety around them. [Sources: 0, 5]

We would prefer to overcome negative experiences in order to avoid the fear of waiting. However, this desire is not as strong as the desire to immediately have a positive experience. [Sources: 3]

Loss aversion is the tendency to prefer loss avoidance to equivalent gains. What separates attention to loss from loss aversion is that it does not mean that losses have more subjective weight (or utility) than benefits. Some of these effects have previously been attributed to loss aversion, but they can be explained by a simple attentional asymmetry between profit and loss. [Sources: 2]

Even if there is no need to choose, this individual difference in the internal reactivity of the internal perception system reflects the impact of the predicted negative impact on the evaluation process, which leads to a preference for avoiding losses, rather than gaining greater but riskier profits. Before we discuss how to avoid loss aversion bias, let’s take a look at another equally important related concept. Loss aversion bias is a cognitive phenomenon in which a person is more affected by losses than by gains, that is, from an economic point of view, the fear of losing money is more than making money than the amount that can be lost. Therefore, there is trauma to prevent more damage. Many early losses. In order to avoid myopia loss aversion bias, you should know that you cannot make a buy/sell decision based on your emotions/feelings in panic. [Sources: 2, 6]

But if you are not taking risks because you are trying to avoid losses, know that the biggest risk is living without risk. Several studies on the effect of loss on decision making have not found loss aversion in terms of risk and uncertainty. In general, the role of the amygdala in anticipation of loss suggests that loss aversion may reflect an avoidance response within Pavlov’s conditional approach. Traditionally, this strong behavioral tendency has been attributed to loss aversion. [Sources: 2, 6]

In other words, heightened feelings of insecurity and risk aversion contributed to an increase in the desire to save more investments. This has had an unusual effect on economic activity and risk premiums, especially in large advanced economies. Having outlined how uncertainty and risk aversion may have affected some key parts of the global economy and financial markets in the post-GFC decade, let me now offer some hints as to what could be behind it all. A second problem, which may have contributed to heightened feelings of insecurity and risk aversion after the GFC, relates to concerns about excessive debt among households in large advanced economies. [Sources: 1]

But the key point was that for any potential growth rate, neutral rates will be lower when uncertainty and risk aversion are high. At the beginning of their research, the authors believed that the asymmetry of expectation best reflects how we approach future events. In this paper, using a new approach, we use economic survey data to assess individual differences in anticipatory emotions, finding that the tendency to feel unpleasant (horrified) at anticipating future losses outweighs the pleasure (taste) in anticipating benefits. That is, people do not like terror. Previous laboratory studies have shown that these anticipatory emotions influence decision making. [Sources: 1, 3, 8]

Research shows that instant gratification is more deeply rooted in our DNA than horror. We often worry about the future, dreading the thought of future misfortunes and savoring the thought of future pleasures. In other words, we are more averse to what we fear than what we like. Terror aversion can cause them not to think or schedule exams. [Sources: 3, 5, 9]

For example, if each group is researching and exploring different parts of a topic when it comes to hearing other groups present their findings to the class, students may object to learning or using the knowledge of other groups. Students who rely too heavily on Google for homework and checking answers (hello again, Tool Law) may get lost when they need to remember this information. Uncertainty and risk aversion are concepts that are difficult to define: they cannot be observed directly and can mean different things in different contexts. [Sources: 1, 5]

Today, I will talk about uncertainty to a large extent one-sidedly, that is, how people perceive the possibility of negative outcomes, referring to risk aversion or animal spirits related to how people act in the face of uncertainty. This is very subjective and varies from person to person and from situation to situation. Using these effects to be greater than the results of opinion polls means determining the source of variation so that they can be reliably proven in individual subjects. [Sources: 1, 2, 6]

This is the tendency to think that other people notice your behavior and appearance more than they actually do. The study found that students wore an uncomfortable shirt among other college students. [Sources: 5]

If your dog is overly afraid of these and other noises, such as fireworks, he may have an aversion to noise. Noise aversion is a fearful or anxious reaction to certain sounds, such as a thunderstorm, traffic, construction work, or a vacuum cleaner. [Sources: 4]

Negative bias is a powerful motivator because much of the research in modern media forces us to confront each other. We found 7 cognitive biases that affect classroom learning, independent learning, and the feelings of many students. Loss aversion is not a subject of behavioral finance or behavioral economics. Behavioral Economics. Behavioral economics is a branch of traditional economics that studies the influence of human psychology, ideology, or behavior on individual or institutional economic decisions. They use the concept of loss aversion bias to get people to buy as soon as possible. [Sources: 3, 5, 6]

Research shows that we crave a delicious snack right away, but prefer to defer paying our bills. This tip will also help you overcome planning error, a related effect that explains why we often think tasks are taking less time than they actually are. You may find that a few small changes in your dog’s daily routine can make a big difference. [Sources: 3, 4, 5]

Fear of you and terror of you will be on every animal on earth. I am afraid to get the test results because it might decide my whole life. [Sources: 7]

The volunteers were given the opportunity to either get a discount for one month or have an extra month to pay the bill. Waiting for a bill in the future was a stronger motivator than getting a future discount. The team conducted three studies using a dozen additional studies to support their article. [Sources: 3]


— Slimane Zouggari


##### Sources #####

[0]: https://www.merriam-webster.com/dictionary/neophilia

[1]: https://www.rba.gov.au/speeches/2021/sp-so-2021-06-02.html

[2]: https://en.wikipedia.org/wiki/Loss_aversion

[3]: https://bigthink.com/smart-skills/dread-motivational-tool/

[4]: https://www.animalhospitalofspringfield.com/services/dogs/blog/scary-sounds-halloween-how-help-dog-noise-aversion

[5]: https://blog.innerdrive.co.uk/7-cognitive-biases-holding-your-students-back

[6]: https://www.wallstreetmojo.com/loss-aversion-bias/

[7]: https://wikidiff.com/aversion/dread

[8]: https://researchportal.bath.ac.uk/en/publications/dread-aversion-and-economic-preferences

[9]: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3822640