The Impact of Negativity Bias on Financial Decision-Making
Submitted by Robert Gordon & Associates, Inc on July 19th, 2023
Negativity bias, a cognitive phenomenon where negative experiences have a greater impact on our thoughts and emotions than positive ones, plays a significant role in influencing human behavior, including financial decision-making. This article explores how negativity bias can affect individuals' financial choices, leading to suboptimal outcomes and potential long-term consequences.
