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KahnemanPrinciple

Loss aversion

Неприятие потерь · Prospect theory · Теория перспектив

Losses hurt about twice as much as equivalent gains feel good. We will work harder to avoid losing $100 than to gain $100.

Plain explanation

The pain/pleasure asymmetry is one of the most robust findings in decision science. It explains why people hold losing stocks too long, why a 50/50 bet for $200 vs $200 feels bad even though it's neutral, why "don't lose" messages move people more than "gain" messages.

Why it matters

Loss aversion drives status quo bias, sunk cost fallacy, and the asymmetry of negotiations. If you can't account for it, you'll misread your own preferences and other people's.

Practical example

You won't sell a stock that's down 30% - it would «realise the loss» - even though you wouldn't buy it at today's price. The fear of locking in a loss outweighs the rational signal.

How to use
  1. 1Reframe questions: «if I didn't already own this, would I buy it at today's price?»
  2. 2Pre-commit to stop-loss conditions before you're emotionally invested.
Read the original book

This part of the knowledge base is inspired by the book. Go to the Ukrainian edition to explore the concept in depth.

Source notes
  • · Методичка по Канеману - теория перспектив, неприятие потерь