ICT 410 Lecture Notes - Lecture 21: Loss Aversion, Tripadvisor
21 Mar 2019
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Definition: more averse to lose something that you already have than to be inclined to get what you do not have. You would rather keep what you have than something you don"t have. Ex: when you see everyone giving their personal information, you cave in and do it as well. If you already have privacy, you would rather keep it than trying to get privacy for the future. We have self control problems that lead us to knowingly misbehave. Ex: draw a contract with a friend to enter the contract. If you don"t lose the weight, you lose your money. If you do lose the weight, you get your money back. There are consequences that are set up incentives. Try their best to lose 10 pounds. If they lose 10 pounds, they"ll get their money back and the matching fund. 5% chance of entering a lottery of winning if they lose 10 pounds.
