Negativity bias and decision making - Deepstash

Negativity bias and decision making

We make decisions based on the information that we have. However, we tend to be more reliant on the negative more than the positive. This causes two outcomes:

  1. Risk aversion – where we prefer an assured outcome over a gamble with a higher expected outcome; and

  2. Loss aversion – where we tend to shy away from losses in comparison to the acquirement of tantamount gains.

People with negativity bias are less likely to be motivated and have clouded judgement.

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