Losing Money Is a Pain-Literally…

August 2007
Journal of Financial Planning;Aug2007, Vol. 20 Issue 8, p12
Academic Journal
The article discusses a development in the area of behavioral finance. Scientists at the Wellcome Trust Centre for Neuroimaging at the University College in London conducted an experiment that involved 24 adults participating in a gambling game. MRI technology indicated that, whenever a participant faced a likely loss, portions of the brain normally associated with physical pain became active. The finding accords with the well-established principle that people fear losing a given amount than they enjoy winning it.


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