January 2025
November 2024
- Nov 25, 2024ConceptsFraming Effect: How Presentation Influences DecisionsIn Kahneman and Tversky's 1981 experiment, 72% of people chose the option that saved 200 lives.
- Nov 13, 2024ConceptsLoss Aversion: Why Losing $100 Hurts More Than Winning $150Kahneman and Tversky's 1979 prospect theory established that losses loom roughly 2 to 2.5 times larger than equivalent gains in subjective weight. Most people refuse a coin flip where they win $150 if heads and lose $100 if tails, despite a positive expected value. Loss aversion shapes housing markets, sports decisions, financial portfolios, and why we stay in bad situations far longer than rational calculation would predict.
December 2023
November 2022
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