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Marketing

Loss Aversion

Losses hurt twice as much as gains feel good

We are wired to avoid loss more than we seek gain. Finding \$10 feels good. Losing \$10 feels terrible. The pain of losing is psychologically about twice as powerful as the pleasure of gaining. This is why we hold onto losing stocks (hoping to avoid the loss) and why "Trial periods" work (we don't want to lose the service we already have).