loss aversion
LOSS uh-VUR-zhun
lɒs əˈvɜːrʒənListen
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Dictionary meaning
the psychological phenomenon, documented by Daniel Kahneman and Amos Tversky in prospect theory, whereby the pain of losing something is experienced as approximately twice as powerful as the pleasure of gaining an equivalent amount; loss aversion explains why people tend to hold on to losing investments too long, prefer avoiding a loss over acquiring a gain, and respond more strongly to threats of having things taken away than to promises of receiving equivalent things; it is one of the most robust findings in behavioural economics and has been applied to retirement savings design, health behaviour change, negotiation strategy, and policy communication
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