Trap -5:Loss Aversion

We weigh negatives twice as heavily as positives. This is similar to loss aversion: We prefer avoiding losses than acquiring equivalent gains.

Loss aversion focuses narrowly on losses and gains, however, while subjective magnitude broadly considers positive and negative events.

Loss aversion refers to our tendency to strongly prefer avoiding losses over acquiring gains.

A backwards technique of motivation is exploiting the preference to avoid losses over acquiring gains. Making people aware that they will lose something if the activity isn’t completed is a fear-based but effective method of external motivation.

Example: Making people pay a fine if the...