Sublime

Second, those who hold return-seeking capital assets but who do not lever up are comparatively disadvantaged if their competitors do.

When evaluating a transaction, traditional economic models simply compare the value to the price. Real, human people, however, compare value to price plus other elements, like fairness.

When it comes to large, complex purchases, we can try to segregate our spending.

As we’ve seen, language changes how we value goods, services, and experiences of all kinds.

There frankly is a hell of a lot of value in the game theory and economics literature.

Once we understand loss aversion and that many things can be framed as either gains or losses—and that the loss framework is more motivating—maybe we can reframe choices, such as how much to contribute to retirement savings, in a way that will persuade us to act in ways that are more consistent with our long-term well-being.

On appelle parfois ce principe « loi de Price », en hommage à Derek J. de Solla Price13, le chercheur qui a découvert son application scientifique en 1963.

There have been many interesting studies showing that by simply placing a limit on something, people’s interest in it will increase.

The cell phone approach is known as aggregating losses and SEGREGATING GAINS and it plays on loss aversion, giving us just one painful loss against many pleasurable gains.