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risk
You fear losing more than you value gaining.
Prospect theory demonstrates that losses are weighted more heavily than equivalent gains.
The '2:1' ratio is a commonly cited empirical estimate from later studies and does not originate as a fixed value in the 1979 Tversky and Kahneman publication.
You choose safety not because it is good, but because it is safe.
Where this comes from
- Study
- Tversky and Kahneman, 'Prospect Theory', 1979
- What the check found
- While the qualitative claim aligns with the core of prospect theory, the '2:1' figure is an oversimplified summary estimate from later literature, not a specific constant defined in the 1979 study.
- 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.