Evolution accounts for a lot of our strange ideas about finances.

Research shows that before we risk an investment, we need to feel assured that the potential gain is twice what the possible loss might be because a loss feels twice as bad as a gain feels good. That's weird and irrational, but it's the way it is.

Some interesting experiments demonstrating this are included in the article.

 

Submitted: Jan 14, 2008    Views: 206    Comments: 0    Likes: 1   


View Article: http://www.latimes.com/news/opinion/commentary/la-op-schermer13jan1...


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