Loss aversion
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In cognitive science and behavioral economics, loss aversion is a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain. It should not be confu
Figure 2 shows the effect of losses on the allocation of attention according to the loss attention account.
Tufted capuchin monkey display human-like behavioral biases, including loss aversion.
Cumulative prospect theory
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In behavioral economics, cumulative prospect theory is a model for descriptive decisions under risk and uncertainty which was introduced by Amos Tversky and Daniel Kahneman in 1992. It is a further de
Loss aversion
…the rational behavior of valuing an uncertain outcome at less than its expected value. When defined in terms of the pseudo-utility function as in cumulative prospect theory (CPT), the left-hand of the function increases much more steeply than gains, thus being more "painful" than the satisfaction from a comparable gain…
Daniel Kahneman