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Loss Aversion

Loss aversion is the tendency for losses to feel psychologically more significant than equivalent gains. You will learn how this asymmetry shapes what people are willing to give up in a negotiation or concede in a conflict.

Chief Galen Tyrol Video

Why Losses Loom Larger Than Equivalent Gains

Explains Kahneman and Tversky's loss aversion finding — that the pain of losing is roughly twice as powerful as the pleasure of an equivalent gain — and its behavioral consequences for risk-taking.