What is Loss Aversion?


Shachar Kariv
Capital Preferences LTD.

“Applying the science of revealed preferences to understand clients is like the arrival of the X-ray machine in medicine.  It lets us see–with great precision–that which we could not hope to understand thru dialogue or questioning alone.”

Explore the breakthrough academic work that gave rise to TrueProfile

Mouseover the images to view a short description and click to view the full paper.

American Economic Review,
May 2007
Revealing Preferences Graphically: An Old Method Gets a New Toolkit
A groundbreaking graphical tool enables practical recovery of individual preferences.
White Paper
New Ground in Financial Risk Tolerance
Capital Preferences offers four scientific tests that consistently and confidently profile clients, addressing those critical questions of risk-tolerance, capacity for loss and investment suitability.
Quantitative Economics, July 2014
Estimating Ambiguity Aversion in a Portfolio Choice
A portfolio-choice experiment that enables estimation of parametric models of ambiguity aversion at the level of the individual subject.