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/  

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