← all facts
loss
You fear losing money more than gaining it.
Loss aversion is the tendency to prefer avoiding losses over acquiring equivalent gains, with a median loss aversion coefficient of approximately 2.25.
The 'roughly twice as potent' estimate originates from Kahneman and Tversky's 1992 paper, not their 1979 paper.
You will often sacrifice significant progress just to avoid a small, temporary step backward.
Where this comes from
- Study
- Kahneman and Tversky, 1979
- What the check found
- The definition is correct, but the specific metric of 'roughly twice as potent' is a result from the 1992 follow-up study, not the 1979 paper cited.
- Confidence
- Solid, with limits
Related
One of these every day, and every one names the study it came from. When a finding is contested, it says so.