New Study Reveals How to Increase Downside Risk Aversion Reversibly.
The study found that when a certain measure called p−3r and another measure r increase, people become more averse to downside risks. This means they are more cautious when facing potential losses. On the other hand, when p−3r and r decrease together, people become less averse to downside risks. This shows that these measures can help predict how people react to risks, either becoming more or less cautious depending on the changes in these measures.