To Fight Another Day: With Guests Alex Imas & Mary Stockwell

In this episode of the Choiceology podcast, the focus is on how people react to losses and take risks, drawing insights from the American Revolution and financial choices. By comparing the strategies of the Americans and the British, the discussion reveals the "realization effect." When losses are acknowledged—like selling a stock or losing a battle—people tend to become more cautious. In contrast, when losses are not recognized, such as holding onto a failing investment or hoping for a victory, individuals may take greater risks. The podcast underscores the need to confront and process losses to make smarter decisions, rather than recklessly trying to recover what’s been lost.