Today we discuss David Kahneman & Amos Tversky's discovery of Loss Aversion, which is a cognitive bias in which people are more averse to losses than they are to gains. We are even more likely to take on risk to avoid a loss rather than gain rewards.
Learn how to apply Loss Aversion to your product in today's episode.
3 months free off yearly subscription for Interaction Design Foundation:
Interested in boosting your career in UI/UX or learning how to build world-class products? The Interaction Design Foundation is offering 3 free months off your yearly membership to Actionable UX Podcast listeners! Use the link below to take advantage of this exclusive offer: https://www.interaction-design.org/learn-ux-design?ep=the-actionable-ux-podcast
References:
Tversky, A., & Kahneman, D. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 47(2), 263-291. https://www.jstor.org/stable/1914185?seq=1.
Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American psychologist, 39(4), 341. https://psycnet.apa.org/record/1984-09731-001.
Goldstein, W. M., & Weber, M. (1994). A cognitive process theory of risk perception and attitudes.
In M. W. Schofield (Ed.), Choice and decision making: Psychological and normative considerations (pp. 187-226). Cambridge: Cambridge University Press.
Gigerenzer, G., & Selten, R. (2001). Bounded rationality: The adaptive toolbox. Cambridge, MA: MIT Press.
Camerer, C.F. (2003). Behavioral game theory: Experiments in strategic interaction. Princeton, NJ: Princeton University Press.
Miller, N. (2003). Prospect theory and macroeconomics: The state of the art. International Review of Economics & Finance, 12(3), 445-457.
Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. The Quarterly Journal of Economics, 106(4), 1039-1061.
Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199-214.
Camerer, C. F. (1995). Individual d
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!