Cognitive biases: why a smart brain makes the same mistakes every time
Loss aversion: why most people refuse a bet they should win
Heads, you win $150. Tails, you lose $100. Most people turn that coin toss down, though it pays anyone who plays it often. Why does a loss weigh more than a win?
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1
You hold up a coin. "Heads, I give you $150. Tails, you give me $100." Toss it many times, and Miva comes out ahead.
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2
"No way." Miva does not even think about it, and most people answer the same. The bet pays more than it costs. So why does the $100 feel so heavy?
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