loss-aversion-psychology
Loss Aversion Psychology - Losses Loom Larger Than Gains
Loss Aversion is a cognitive bias discovered by Daniel Kahneman and Amos Tversky showing that people feel losses approximately twice as strongly as equivalent gains. This asymmetry profoundly influences decision-making and behavior.
When to Use This Skill
- Designing retention and anti-churn features
- Crafting pricing and upgrade messaging
- Creating urgency in conversion funnels
- Building streak and progress features
- Writing copy for landing pages
- Framing feature benefits
Core Concepts
The 2:1 Ratio
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