“People’s tendency to strongly prefer avoiding losses to acquiring gains.” (related: diminishing marginal utility) – Gabriel Weinberg
“In economics and decision theory, loss aversion refers to people’s tendency to prefer avoiding losses to acquiring equivalent gains: it’s better to not lose $5 than to find $5. Some studies have suggested that losses are twice as powerful, psychologically, as gains.
This leads to risk aversion when people evaluate an outcome comprising similar gains and losses; since people prefer avoiding losses to making gains.” – Wikipedia (James Clear)
Source:
Gabriel Weinberg’s Mental Models I Find Repeatedly Useful
https://medium.com/@yegg/mental-models-i-find-repeatedly-useful-936f1cc405d
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James Clear Mental Models Overview
https://en.wikipedia.org/wiki/Loss_aversion
