Decision-Making Biases

Loss aversion

Feeling losses more strongly than equivalent gains.

What Is Loss aversion?

Loss aversion is a thinking trap where feeling losses more strongly than equivalent gains.

How It Tricks You

It can make one option feel obvious before the tradeoffs have been checked.

Real-World Example

A person avoids a fair risk because the possible loss feels larger than the possible gain.

Seen Online As

• I would rather avoid losing this than risk gaining something better.
• Giving it up feels worse than getting it ever felt good.
• The possible loss is louder than the possible upside.

What To Ask Instead

Am I avoiding a loss or choosing the best option?

Related Thinking Traps

• Anchoring bias
• Confirmation bias
• Framing effect
• Status quo bias

Common Situations

• Thinking Traps at Work
• Thinking Traps with AI Prompts
• Thinking Traps in Money Decisions

Quick FAQ

What is Loss aversion?

Feeling losses more strongly than equivalent gains.

What is an example of Loss aversion?

A person avoids a fair risk because the possible loss feels larger than the possible gain.

How do I spot Loss aversion?

Am I avoiding a loss or choosing the best option?