Loss Aversion

Why giving something up feels worse than gaining something equivalent feels good.

What the evidence says

  • Losses loom larger than equivalent gains — people feel the pain of losing more intensely than the pleasure of gaining[1]
  • This makes people resist changes from the status quo even when change would be beneficial[1]
  • Applied to food: giving up a favorite food feels like a significant loss even when the health gains outweigh the pleasure lost[1]
  • Loss aversion is a feature of System 1 (automatic) thinking, not a deliberate assessment[1]
  • Part of prospect theory, developed by Kahneman and Tversky[1]