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English grammar… what a hassle. Is it “lay” or “lie”? – Are you sure you’re using them correctly? “Than” versus “then?” One should use “than” only with a comparative adjective, like taller than, faster than, as in, Apocalypse Now is better than The Deer Hunter. “Then” is used for time, like at that moment, or after. Or “I lost $100 at blackjack, and then lost another $100 in craps.” Speaking of gambling losses, ever heard of loss aversion, a theory which behavioral economists will tell you drives many of our financial decisions? People feel the pain of losses much more than they feel the pleasure of gains. Empirical studies suggest that losing is twice as painful as winning is enjoyable. So people will go to great lengths to avoid losses, and to recover what they’ve lost. Politicians often play on this (voters have lost the good old days and want them back, and should fear their opponent because they will lose even more of their lives). Loss aversion makes people cautious: offered the choice between five hundred dollars and a fifty percent chance at a thousand dollars or nothing, most people take the sure thing. But once people have sustained loses, impulses change dramatically. Offered the choice between losing five hundred dollars and a fifty percent chance of losing a thousand dollars or nothing, most people prefer to gamble. This is why people hold falling stocks, hoping for a rebound rather than cutting their losses, and its why they double down after losing a bet. (Today’s podcast is available here and has an RC/RC interview about what to look forward to in next week’s MBA Secondary Marketing conference. This week’s is sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender.)