Loss aversion values avoiding losses more than achieving gains
The natural state of human existence is to desire avoiding the loss of what we already have more than to gain what we do not yet have.
Loss aversion refers to the relative strength of two motives: we are driven more strongly to avoid losses than to achieve gains. A reference point is sometimes the status quo, but it can also be a goal in the future: not achieving a goal is a loss, exceeding the goal is a gain. As we might expect from negativity dominance, the two motives are not equally powerful. The aversion to the failure of not reaching the goal is much stronger than the desire to exceed it.[1]
See also:
- Negativity Instinct hinders thinking by emphasizing bad news
- Negativity dominance processes the bad more thoroughly than the good
Thinking, Fast and Slow – Kahneman (2013), ch. 28, § “Goals are Reference Points.” ↩︎