Loss Aversion

The tendency to prefer avoiding losses over acquiring equivalent or greater gains. People are more motivated by the fear of loss than by the prospect of an e...

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Social and Emotional Influence

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Highlights potential losses to motivate user actions

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Can feel manipulative if overemphasised

Best paired with

Progressive Disclosure

Gradual information reduces fear-based decision-making.

Choice Architecture

Users benefit from structured choices that reduce avoidance behaviour.

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Error Messages

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Conversion

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Retention

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Decision-Making

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Cognitive Load

The Study

Loss Aversion explores how individuals' decisions and perceptions are influenced by underlying psychological mechanisms. Research on this bias has revealed its role in everyday behaviours and decision-making processes. Studies often involve experiments where participants' reactions are observed to determine the bias's impact. This understanding helps designers and marketers craft more effective, user-centric experiences.

The result

The results indicate that loss aversion significantly influences decision-making by altering perception, recall, or emotional response. These findings provide valuable insights into cognitive behaviour, informing design strategies.

Actionable tips

1.

Highlight potential losses to drive action.

2.

Frame gains to minimise perceived risks.

3.

Balance urgency with ethical messaging.

Ingredient pairings

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Best pairings

Progressive Disclosure

Encourages rational thinking while preventing emotional overreactions.

Choice Architecture

Minimises loss-related anxiety while preserving decision autonomy.

Nudge

Encourages balanced decisions while reducing fear-driven inaction.

Feedback Loop

Promotes learning while discouraging avoidance of necessary risks.

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Worst pairings

Fear of Missing Out (FOMO)

Manipulates fear of loss to drive impulsive actions.

Scarcity Principle

Exploits fear-based thinking to encourage unnecessary urgency.

Overconfidence Effect

Encourages unrealistic optimism while ignoring potential downsides.

Default Bias

Discourages exploration of better alternatives due to loss avoidance.

Extra impact of other biases

Status Quo Bias

Encourages preference for maintaining familiar, low-risk decisions.

Scarcity Principle

Increases urgency by emphasizing the fear of missing out.

Cocktails with this ingredient

The Superiority Sip

Positions the product as the best option among alternatives.

Overcoming competitor comparisons