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Our Work Irrational Investments and Behavioural Finance

When to Hold ‘Em, When to Fold ‘Em

Loss Aversion and the Sunk Cost Trap in Venture Capital In the high-risk world of venture capital (VC), balancing the tightrope of innovation and risk is a key skill to master. Knowing when risks have reached their limits can mean the difference between cutting losses and doubling down in hopes of a future payoff. This […]

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Article Review

Enhancing the Efficacy of Teacher Incentives through Loss Aversion: A Field Experiment

Review of a paper by Fryer, Levitt, List and Sadoff (2012) Improving the productivity of teachers has long been a priority in Public Policy. In recent years, there has been growing enthusiasm among policy makers for initiatives that tie teacher incentives to the achievement of their students. However, evidence as to the efficacy of such […]