Less is More Despite Loss Aversion!
Phyllis G. Pollack, PGP Mediation
In 1979, Daniel Kahneman and Amos Tversky, in creating their Prospect Theory, developed the important cognitive bias concept of loss aversion. It is summed up in the saying “losses loom larger than gains.” That is, people are more willing to take risks to avoid a loss than to make a gain. In fact, they may work twice as hard to avoid the loss than they would to acquire the gain. (Loss Aversion, behavioraleconomics.com)
This cognitive bias came to mind when I read an article...Continue reading...