Loss Aversion People morn lose more than appreciate gain
Imagine finding a $100 bill on the ground. You’d feel a quick surge of joy. Now imagine losing $100 from your wallet. Which feels stronger? For most of us, the pain of loss is sharper than the pleasure of gain.
This is the essence of loss aversion, a principle identified by psychologists Daniel Kahneman and Amos Tversky in their groundbreaking work on prospect theory. Their research revealed a deep asymmetry in the human mind: losses hurt roughly twice as much as equivalent gains feel good.