Decision making · 4 minute read
Loss Aversion
Losing often hurts more than an equal gain feels good.
Try thisWeigh gains and losses on the same scale before deciding.
In plain English
What is it?
Potential losses command extra attention, which can make us overly cautious or unwilling to change.
In the real world
What does it look like?
Someone refuses a fair opportunity because the possible loss feels more vivid than the matching gain.
Make it useful
How do you think more clearly?
Weigh gains and losses on the same scale before deciding.