Loss aversion impacts choices from "summary" of Thinking, Fast and Slow... in 30 Minutes by 30 Minute Expert Summary Staff
Loss aversion is a concept that plays a significant role in the choices we make. This idea suggests that people tend to strongly prefer avoiding losses over acquiring gains. In other words, the pain of losing something is felt more intensely than the pleasure of gaining something of equal value. This psychological phenomenon has a profound impact on decision-making processes. When faced with a choice that involves potential gains and losses, individuals are more inclined to opt for options that minimize the risk of losing something rather than maximizing potential gains. This tendency stems from a de...
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