https://cuicaihao.github.io/tags/loss-aversion/Recent content in Loss Aversion on C.CUI's LogHugoen-AUFri, 01 May 2026 14:00:00 +1000https://cuicaihao.github.io/posts/2026-05-01-prospect-theory-loss-aversion-reference-point/Fri, 01 May 2026 14:00:00 +1000https://cuicaihao.github.io/posts/2026-05-01-prospect-theory-loss-aversion-reference-point/This article explores Daniel Kahneman’s ‘Prospect Theory,’ revealing that human decisions are not based on absolute utility but on gains and losses relative to a ‘reference point.’ Through concepts like loss aversion, status quo bias, the endowment effect, and the framing effect, it explains why people are more prone to risk-taking when facing losses and how to make better decisions by actively managing reference points.