#ProspectTheory

Imagine being offered a bet: flip a coin, and if it lands heads, you win 1,000 baht—but if it lands tails, you lose 1,000 baht. Most people, in Thailand or around the world, would decline such an even-odds bet. This instinctive fear of losing—despite the potential to win an equal amount—is no accident. In fact, it is a well-documented psychological phenomenon known as “loss aversion”, which profoundly shapes human decision-making in daily life, finance, relationships, and even national policy.