Loss aversion

Loss aversion is the finding that losses weigh more than equally sized gains: losing ten euros hurts more than gaining ten euros pleases, with a factor of roughly two as the rule of thumb. It explains why people cling to what they have, why free trials and money-back guarantees lower thresholds (the loss becomes reversible), and why a price increase lands harder than a missed discount. The application lives in framing: the same offer works differently as keeping something you already have than as a gain to be grabbed. The limit: effect sizes vary by context, and not every choice is loss-coloured.

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