A managing director with Deutsche Bank in New York, Manuel Maximino
possesses over a decade of experience in managing finances. Manuel
Maximino spends his time outside of work reading up on different topics,
including behavioral economics.
The integration of economic
theory and social science, behavioral economics is known to help
entrepreneurs and businesspeople improve their companies’ chances of
succeeding in their chosen markets. Using behavioral economics can help
professionals plan their steps and grow their businesses.
To do
this, they must focus on what they expect to lose, not just what they
want to achieve. By instilling a fear of loss in themselves,
businesspeople can prepare better for almost any issue.
Additionally,
businesspeople are more likely to make sales if they tell clients about
the losses that can be expected by not buying into a certain product.
This is called loss aversion--the idea that a person would rather invest
and gain something after they are aware of what they might lose by not
doing so. Research suggests that loss aversion is a powerful motivator.
