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loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains.
Loss aversion implies that one who loses $100 will lose more satisfaction than another person will gain satisfaction from a $100 windfall.
Reference: http://en.wikipedia.org/wiki/Loss_aversion
Created at http://www.b2bwhiteboard.com
Loss aversion implies that one who loses $100 will lose more satisfaction than another person will gain satisfaction from a $100 windfall.
Reference: http://en.wikipedia.org/wiki/Loss_aversion
Created at http://www.b2bwhiteboard.com
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