Loss Aversion
Behavioral & Decision Making
Loss Aversion
Kahneman and Tversky's finding from Prospect Theory that the pain of losing is psychologically about twice as powerful as the pleasure of gaining.
Explained
- The pain of losing feels about twice as strong as the pleasure of an equal gain.
- People work harder to avoid a loss than to secure the same amount of benefit.
- Framing something as a potential loss therefore motivates more than framing it as a gain.
- Expiring points, trial features about to vanish, and streaks at risk all press this button.
In the wild12 screens
Related modelsBehavioral & Decision Making
Log in to view
Create a free account to unlock the full analysis — every screen, model, and insight.