#2 Loss Aversion The Actionable UX podcast

1+ y ago 12:21

Content provided by Austin Acevedo. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Austin Acevedo or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Today we discuss David Kahneman & Amos Tversky's discovery of Loss Aversion, which is a cognitive bias in which people are more averse to losses than they are to gains. We are even more likely to take on risk to avoid a loss rather than gain rewards.

Learn how to apply Loss Aversion to your product in today's episode.

3 months free off yearly subscription for Interaction Design Foundation:

Interested in boosting your career in UI/UX or learning how to build world-class products? The Interaction Design Foundation is offering 3 free months off your yearly membership to Actionable UX Podcast listeners! Use the link below to take advantage of this exclusive offer:
https://www.interaction-design.org/learn-ux-design?ep=the-actionable-ux-podcast

References:

Tversky, A., & Kahneman, D. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 47(2), 263-291. https://www.jstor.org/stable/1914185?seq=1.

Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American psychologist, 39(4), 341. https://psycnet.apa.org/record/1984-09731-001.

Goldstein, W. M., & Weber, M. (1994). A cognitive process theory of risk perception and attitudes.

In M. W. Schofield (Ed.), Choice and decision making: Psychological and normative considerations (pp. 187-226). Cambridge: Cambridge University Press.

Gigerenzer, G., & Selten, R. (2001). Bounded rationality: The adaptive toolbox. Cambridge, MA: MIT Press.

Camerer, C.F. (2003). Behavioral game theory: Experiments in strategic interaction. Princeton, NJ: Princeton University Press.

Miller, N. (2003). Prospect theory and macroeconomics: The state of the art. International Review of Economics & Finance, 12(3), 445-457.

Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: A reference-dependent model. The Quarterly Journal of Economics, 106(4), 1039-1061.

Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199-214.

Camerer, C. F. (1995). Individual decision making. In J. Kagel & A.E. Roth (Eds.), The Handbook of Experimental Economics (pp. 587-703). Princeton, NJ: Princeton University Press.

Columbia University's Mailman School of Public Health. "Global study confirms influential theory behind loss aversion." ScienceDaily. ScienceDaily, 18 May 2020. .

7 episodes