Loss Aversion

Loss Aversion

Loss aversion is the tendency for a loss to hurt more than an equal gain feels good—often about twice as much. Kahneman’s prospect theory describes this imbalance: people weigh losses more heavily than gains of the same size. That is why a “don’t miss this” message can hit harder than “save 20%.” Marketers use scarcity and countdown timers to put that fear of losing access in front of you before you have finished comparing options.

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