In behavioral economics, what is the concept that suggests people prefer to avoid losses rather than acquiring equivalent gains?

In behavioral economics, the concept that suggests people prefer to avoid losses rather than acquiring equivalent gains is called loss aversion. This means that losing something feels worse than the joy of gaining something of the same value. For example, if you lose $20, you might feel more upset than if you find $20. This feeling can influence our decisions; people might choose not to invest in a risky opportunity because they fear losing money, even if there’s a chance to gain more. Understanding loss aversion helps us see why people sometimes make choices that seem less rational, as they prioritize avoiding losses over seeking gains.