• How We Really Make Decisions: Loss Aversion and How to Make Better Choices

  • Sep 18 2020
  • Duración: 12 m
  • Podcast

How We Really Make Decisions: Loss Aversion and How to Make Better Choices Por arte de portada

How We Really Make Decisions: Loss Aversion and How to Make Better Choices

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  • Ever wonder why people don't just do what is best for them?  Ever wonder why you don't?  Turns out, human beings have a tendency towards something called Loss Aversion in decision making.  Yep.  You read that right!  The human behavior data shows us very clearly that we tend to act first "not to lose" and only secondarily to gain something!  Learn more about that here and what you can do to counter that tendency and make sure that your decisions are your own...and in your own best interest!

    As always, we base our show in empirical data.  Here is the article we referenced as well as another source to learn more from a Behavioral Economics perspective about this fascinating quirk of human behavior:

    Articles:

    Solway, A., Lohrenz, T. & Montague, P.R. (2019) Loss Aversion Correlates with the Propensity to Deploy Model-Based Control. Frontiers in Neuroscience, 13:915.
    doi: 10:3389/fnins.2019.00915

    Behavioral Economics in Action:

    Ariely, D. (2010) Predictably Irrational:  The Hidden Forces that Shape our Decisions-Revised and Expanded.  Harper Perenial, NY.  ISBN:  978-0061353246
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