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Loss aversion and everyday decisions: what Thai readers should know
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Loss aversion is a common cognitive bias. People feel losses more intensely than equivalent gains. In practical terms, it means many prefer avoiding a risk that could cost 1,000 baht to pursuing a chance to win 1,000 baht. This tendency shapes choices in money, health, education, and public policy.
The concept comes from the work of psychologists Amos Tversky and Daniel Kahneman, foundational to prospect theory. Studies show that the pain of losing can be roughly twice as strong as the pleasure of gaining. As a result, people often demand larger potential rewards to take a risk and may act cautiously to protect what they have.
#lossaversion
#behavioraleconomics
#cognitivebias
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