We are wired to avoid losses more than we seek gains from "summary" of Predictably Irrational, Revised by Dan Ariely
When we face a decision, our instinct is to weigh the potential losses more heavily than the possible gains. This bias towards avoiding losses is deeply ingrained in our psychology. It stems from our evolutionary history, where making choices that minimized harm and danger was crucial for survival. Our ancestors who were more attuned to the risks of losing resources or facing threats were more likely to pass on their genes. This preference for avoiding losses manifests in various aspects of our lives, including our financial decisions. For example, we are more likely to hold onto an investment that is performing poorly because selling it would mean realizing a ...
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