curio

psychology

Why an even $20 bet might feel like a bad deal

Imagine a coin toss. Heads wins you $20; tails loses you $20. The chances and amounts match, but you might still turn it down.

The money you already have can be the starting point for judging the bet. Losing your own $20 may matter more than gaining another $20.

That difference is called loss aversion.

Source: gwern.net

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