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People often avoid risks to protect themselves from losses from "summary" of Predictably Rational? by Richard B. McKenzie
In our daily lives, we often find ourselves making decisions based on the desire to avoid risks. This desire is rooted in our innate need to protect ourselves from potential losses that may arise from taking those risks. When faced with a choice between two options - one that involves risk and another that is safer - we tend to lean towards the safer option, even if it means sacrificing potential gains. This behavior can be observed in various aspects of life, from financial decisions to personal choices. For example, when investing our money, we are more likely to choose low-risk options, such as bonds or savings accounts, rather than high-risk investments like stocks. This is because we fear the possibil...
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