How Loss Aversion Makes You Keep Losing Money

Lucas and Luna dissect loss aversion — the behavioral bias where losses hurt twice as much as equivalent gains feel good. They explore Kahneman and Tversky's original 1979 study, how Amazon used free-return framing to dominate e-commerce, and why your brain treats a $20 loss differently than missing a $20 gain. Lucas explains why loss aversion explains the 'disposition effect' in investing — holding losers too long, selling winners too soon — and shows how marketers exploit it with 'limited-time' framing. Luna pushes back on whether loss aversion is hardwired or culturally conditioned, citing a cross-cultural study that found lower loss aversion in subsistence farmers. They close on how awareness of the bias is the first step to overcoming it, then a brief listener-support mention tied to the episode's theme of fighting cognitive traps. #LossAversion #BehavioralEconomics #Kahneman #Tversky #Amazon #MarketingPsychology #FexingoBusiness #BusinessPodcast #CognitiveBiases #ProspectTheory #DispositionEffect #InvestingBehavior #ConsumerPsychology #DecisionMaking #FreeReturns #MarketingStrategy #BehavioralScience #Podcast Keep every episode free: buymeacoffee.com/fexingo