Passage: Behavioral economists have challenged the traditional assumption of the 'rational actor' by demonstrating that humans are often motivated by psychological biases rather than pure utility maximization. One prominent concept is loss aversion, which suggests that the pain of losing ten dollars is twice as powerful as the joy of gaining ten dollars. This asymmetry explains why investors might hold onto declining stocks for too long, hoping to break even rather than accepting a certain loss. Furthermore, the way information is presented, or 'framed,' can significantly alter decision-making. A medical procedure described as having a ninety percent success rate is far more likely to be chosen than the same procedure described as having a ten percent failure rate. These insights suggest that market outcomes are as much a product of human psychology as they are of supply and demand.