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The Incentives Lab
HBT-COG-0452 · Dimension COG · Cognition

Loss Aversion

Losses hurt roughly twice as much as equivalent gains feel good.

Decision Bias·Cognitive Bias·Grade B·draft· enriching…

Scientific Definition

Losses hurt roughly twice as much as equivalent gains feel good.

Plain-English Definition

Losses hurt roughly twice as much as equivalent gains feel good.

Feynman Explanation

Most strategy is grief management.

Core Principle

Losses hurt roughly twice as much as equivalent gains feel good.

Mechanisms

Psychological

Losses hurt roughly twice as much as equivalent gains feel good.

Behavioral Economic

Pending editorial review.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Most strategy is grief management.

Examples

Everyday
  • Holding a failing initiative because shutting it down 'admits loss.'
Modern (Organizational)
  • Org charts calcify around protecting sunk investments rather than chasing new ones.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Frame status quo as an active cost. Inaction is a decision; price it.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
AI adoption stalls because the felt loss of control outweighs the projected gain.
Amplifying Incentives
Org charts calcify around protecting sunk investments rather than chasing new ones.
Org Failure Modes
Org charts calcify around protecting sunk investments rather than chasing new ones.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Frame status quo as an active cost. Inaction is a decision; price it.
Diagnostic Questions
  • Frame status quo as an active cost. Inaction is a decision; price it.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Frame status quo as an active cost. Inaction is a decision; price it.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
AI adoption stalls because the felt loss of control outweighs the projected gain.
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0452 · COG
Loss Aversion
LAABAction BiasAHAffect HeuristicABAnchoring BiasDEDecoy EffectDEDefault EffectEEEndowment EffectFEFraming EffectHDHyperbolic DiscountingIEIKEA EffectIBInformation Bias

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.