Regret Aversion - The Decision Lab
the €100,000 offer, but at least you won't leave empty-handed. The upshot of all this is that you badly miscalculate the risk. You keep on chasing after the possibility of a big gain because you can't accept the prospect of a loss. Your emotions have sabotaged common sense. Loss aversion is an innate flaw. Everyone who experiences emotion is vulner
... See moreJonah Lehrer • How We Decide
The first is a weakened focus on the concept of bias. The point of decision-making is not to minimize bias. It is to minimize error, of which bias is one component. In some environments, a biased decision-making tool will deliver the lowest error. For example, statisticians and computer scientists often use a class of procedures called regularizati... See more
Jason Collins • We don’t have a hundred biases, we have the wrong model - Works in Progress
Loss Aversion is the idea that people hate to lose things more than they like to gain them. There are very few relationships that psychology is able to quantify, but this is one of them: people respond twice as strongly to potential loss as they do to the opportunity of an equivalent gain.
Josh Kaufman • The Personal MBA: A World-Class Business Education in a Single Volume
Pourquoi l’aversion à la perte est importante ?
On observe souvent ce biais dans le business et les finances.
Un individu sera très prudent si une action peut lui faire perdre de l’argent (même si le gain potentiel est élevé).
C’est d’ailleurs sur ce biais que repose l’ensemble de l’industrie des assurances et mutuelles dont la proposition de valeur ... See more
On observe souvent ce biais dans le business et les finances.
Un individu sera très prudent si une action peut lui faire perdre de l’argent (même si le gain potentiel est élevé).
C’est d’ailleurs sur ce biais que repose l’ensemble de l’industrie des assurances et mutuelles dont la proposition de valeur ... See more
Clément Fromont • L'aversion à la perte
Action bias. Football goalkeepers will jump to the left or right when facing penalties, even though statistically they'd be better off just staying in the middle. Action bias is the tendency to choose action over inaction, even where there's no indication that taking action will help. We tend to (falsely) equate activity with productivity & keeping... See more
Regret is the quintessential upward counterfactual—the ultimate If Only. The source of its power, scientists are discovering, is that it muddles the conventional pain-pleasure calculus.[10] Its very purpose is to make us feel worse—because by making us feel worse today, regret helps us do better tomorrow.