Loss aversion - Episode 2 | Season2

Nudging Financial Behaviour

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/
• New vistas in risk profiling - https://rpc.cfainstitute.org/en/research/foundation/2017/new-vistas-in-risk-profiling

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    
• Producer: Faeron Wheeler of F Creations    
• Original music and sound mix: Neil Leachman    
• Video and editing: Deetlefs Smith and Matthew Carew 
• Hair and makeup: Ida Webster    
• Set styling: Michelle Murray of Interiors Etc.  
• Voice over: Sizo Mphti