Loss aversion - Deepstash

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Loss aversion

It's our tendency o focus on losses rather than gains. 

That makes people who are more prone to feel regret less likely to take risks.

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MORE IDEAS FROM THE SAME ARTICLE

Brain imaging helped identify the neural circuits that are involved when we feel regret.

A substantial activity is taking place in the hippocampus, which is responsible for memory. Also,  experiencing regret and being scared of feeling regret involve very similar neural circuits – indicatin...

Too many people hang on to relationships that they well know are going nowhere.

Ending a relationship puts us in the situation to admit we have made a mistake and it makes us experience regret. So to avoid regret, we convince ourselves that as we have come so far with the relationshi...

Regret is important in our lives because it facilitates the process of learning from our mistakes and avoiding repeating them.

When starting new projects, we tend to have high expectations of them doing well. We put a big amount of effort into them and even if see they don't go that well, we still choose not to opt-out. Instead, we hang on them longer, because we feel regret of leaving a project before it material...

It's a bias related to money and it describes how investors hold on tight to losing assets. The driving force behind this behavior is our fear of regret.

It shows we are very hesitant to sell an asset at a loss and we tend to hang on to it as it keeps dropping in value, hoping it will pi...

Being afraid of regret is a powerful driver of maintaining the status quo in our lives.

  • Start by assessing how regret really is affecting you.
  • Always be aware that while making a change always involves a risk it is equally risky to do nothing.
  • Remember that regret keeps us tied to the past.
  • Seek help and allow yourself to be advised by others.

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Status quo bias

Status quo bias is when we prefer that our environment and situation should remain unchanged.

The bias has the most impact in the area of decision-making, as we tend to prefer the more familiar choice over the less familiar, but often better, option.

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What we regret

The regrets that bother us the most involve failing to live up to our “ideal selves.” 

We’re not as bothered by the mistakes we’ve made or the things we ought to have done as we are bothered by never becoming the person we truly wanted to be.

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Sabotaging behaviors

  • You are controlling and rigid in the way that others should treat you and are easily disappointed. 
  • You have issues with real intimacy. 
  • You tell yourself internally that this relationship will never work because you inherently feel inside that you’re not good en...

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