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Have you paid attention to either of the past US market busts, in 2000-2001 and 2008? People overwhelmingly ride it into the ground because of two things:

- The fear of realizing a loss - The unrealistic expectation of upside

Also, you'd be hard pressed to find a stock IRL that you could predict in advance as "50/50" and see what participants do, wouldn't you?




It seems like it would be fairly simple to design an stock market simulation (with real money payouts) to test this.


Either way it is not realistic. People losing a few cents on what they know is a simulation is far, far different than people watching their life savings evaporate in an uncertain environment.

Besides, the point of that particular study isn't a stock, it's that they have a 50-50 chance of losing money they were just given. The stock is just a placeholder for anything.




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