Loss Aversion Quotes & Sayings

Time and again, we let the fear of loss overpower rational decision-making and often make ourselves worse off just to avoid a potential loss. Psychologists call this loss aversion, and it means we often tend to prefer avoiding losses at the expense of acquiring gains. — L. Jon Wertheim

The concept of loss aversion is certainly the most significant contribution of psychology to behavioral economics. — Daniel Kahneman

Having a long-term plan--and not casting it aside--is the key to dealing with our fear of loss (loss aversion). — Ori Brafman

Haven't you realized that pleasure, which is indeed certainly the one and only reason for the two sexes to come together, is nevertheless not enough to establish a relationship between them? And that though this pleasure is preceded by desire which draws people together, it is however followed by aversion which pushes them apart? It's a law of nature which only love can change. Can we feel love whenever we want? Yet love is always needed, which would be a dreadfully tiresome thing if it hadn't fortunately been realized that it's enough for just one of the partners to feel it, thereby halving the problem, and without even incurring any great loss; in fact, one party is happy to love, the other to please, which is actually a bit less exciting but which can be combined with the pleasure of deceiving and that evens things out, so everyone's happy. — Pierre-Ambroise Choderlos De Laclos

Now, it has been independently shown that people hate to lose something more than they enjoy gaining it. For example, they don't mind paying for something with a credit card even when told there is a discount for cash, but they hate paying the same amount if they are told there is a surcharge for using credit. As a result, people will often refuse to gamble for an expected profit (they turn down bets such as "Heads, you win $120; tails, you pay $100), but they will gamble to avoid an expected loss (such as "Heads, you no longer owe $120; tails, you now owe an additional $100"). (This kind of behavior drives economists crazy, but is avidly studied by investment firms hoping to turn it to their advantage.) The combination of people's loss aversion with the effects of framing explains the paradoxical result: the "gain" metaphor made the doctors risk-averse; the "loss" metaphor made them gamblers. — Steven Pinker

This mindset, known as loss aversion, the sunk-cost fallacy, and throwing good money after bad, is patently irrational, but it is surprisingly pervasive in human decision-making.65 People stay in an abusive marriage because of the years they have already put into it, or sit through a bad movie because they have already paid for the ticket, or try to reverse a gambling loss by doubling their next bet, or pour money into a boondoggle because they've already poured so much money into it. Though psychologists don't fully understand why people are suckers for sunk costs, a common explanation is that it signals a public commitment. The person is announcing: "When I make a decision, I'm not so weak, stupid, or indecisive that I can be easily talked out of it." In a contest of resolve like an attrition game, loss aversion could serve as a costly and hence credible signal that the contestant is not about to concede, preempting his opponent's strategy of outlasting him just one more round. — Steven Pinker

In contrast to the speculators preoccupation with rapid gain, value investors demonstrate their risk aversion by striving to avoid loss. — Seth Klarman

To taking an action that could make life even worse. Psychologists call this "loss aversion." Research in cognitive — Jerome Groopman

If we can embrace the adventure and risk and equip our churches to lay down their lives and abandon their inherent loss-aversion, who knows what innovation, what freshness, what new insights from the Spirit will emerge. — Alan Hirsch

Loss aversion is a powerful conservative force that favors minimal changes from the status quo — Daniel Kahneman

If we could be freed from our aversion to loss, our whole outlook on risk would change. — Alan Hirsch

One who shows signs of mental aberration is, inevitably, perhaps, but cruelly, shut off from familiar, thoughtless intercourse, partly excommunicated; his isolation is unwittingly proclaimed to him on every countenance by curiosity, indifference, aversion, or pity, and in so far as he is human enough to need free and equal communication and feel the lack of it, he suffers pain and loss of a kind and degree which others can only faintly imagine, and for the most part ignore. — Charles Horton Cooley