Choice Hacking

Loss Aversion: Why losing is twice as painful as winning

Episode Summary

Have you ever experienced FOMO — the “Fear of Missing Out”? It’s a form of social anxiety that makes people scared they’re being left out of exciting or interesting events. It’s usually triggered by posts on social media, where it looks like the whole world is having fun without you. If you suffer from FOMO, you’re not alone. A recent study found that 70% of millennials experience the fear of missing out regularly. And there's a powerful psychological principle behind why people experience FOMO - it’s called Loss Aversion. First identified by Nobel Prize-winner Daniel Kahneman, Loss Aversion is a psychological principle that says people will go to great lengths to avoid losing. In fact, the psychological pain of losing is twice as powerful as the pleasure of winning. Join us as we explore the good and bad sides of Loss Aversion, and how to use it to create more engaging, persuasive, and effective customer experiences.

Episode Notes

 

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