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It's basic human nature to throw good money after bad because humans are twice as upset about losses as they are happy about wins. It's thusly common among peop
by mattmaroon 17y ago
It's basic human nature to throw good money after bad because humans are twice as upset about losses as they are happy about wins. It's thusly common among people who know that to overcompensate for their own fallibility and go the other way.
- knightinblue 17y agohumans are twice as upset about losses as they are happy about wins Any research to back that up? I always thought that was a subjective thing, in that it varies for everyone.
- mediaman 17y agoYes. Daniel Kahneman and Amos Tversky were the first to demonstrate this behavior. Tversky, A., & Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211, 453-458. However, I don't know enough to answer your question about in-population variance of this trait.
- mattmaroon 17y agoIs that the one with the coin flips? As I understand it an experiment showed that if you put people in a situation where one side of the coin loses $100 and the other side wins $x, for most people $x has to be greater than $200 for them to take the flip.