Charles Munger, in 'Poor Charlie's Almanack’, describes the concept:

The quantity of man's pleasure from a ten-dollar gain does not exactly match the quantity of his displeasure from a ten-dollar loss. That is, the loss seems to hurt much more than the gain seems to help.

A man ordinarily reacts...


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'Why Smart People Make Big Money Mistakes and How to Correct Them', by Gary Belsky & Thomas Gilovich:

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