Loss Aversion

Loss aversion - It is difficult to get people to accept losses. That's why it's better to negotiate by getting the other party to give you something, rather than having them give up something

  • ex. It feels better to gain $50 twice than $100 once, since every gain is rewarding. Likewise, it feels worse to lose $50 twice than to lose $100 once, since every loss is painful.

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