Loss Aversion Means Losses Hurt Twice as Much as Gains Feel Good

Kahneman and Tversky's prospect theory shows that people experience losses roughly twice as intensely as equivalent gains — meaning a £50 loss causes about as much pain as a £100 gain causes pleasure. This explains risk aversion, status quo bias, and why people hold losing investments too long. Designing products that eliminate perceived losses is often more effective than adding gains.

Source: Prospect Theory — Kahneman & Tversky (1979), Econometrica