Loss Aversion (Prospect Theory)
Kahneman and Tversky's model showing that the pain of losing is twice as powerful as the joy of gaining.
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Common Uses
- Pricing presentation (anchoring on losses vs. gains)
- Framing risk communications to consumers
- Designing opt-in vs. opt-default flows
- Nudge-style interventions in finance and health
Related Models
Psychology
Nudge Theory (Choice Architecture)
Thaler and Sunstein's concept of using choice architecture to influence behavior without restricting choices.
PsychologyTheory of Planned Behavior
Icek Ajzen's model linking beliefs and behavior via attitudes, subjective norms, and perceived behavioral control.
PsychologyFlow State Dynamics
Csikszentmihalyi's model of human experience, balancing challenge level vs skill level to reach Flow.
OrganizationHerzberg Two-Factor Motivation
Herzberg's Motivation-Hygiene Theory — how motivator factors (achievement, recognition) and hygiene factors (salary, ...