Loss Aversion: Difference between revisions
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'''Closely Related Concepts:''' Prospect Theory <br> | '''Closely Related Concepts:''' Prospect Theory <br> | ||
'''Mechanisms:''' [[Scarcity]], [[Fear of Missing Out| | '''Mechanisms:''' [[Scarcity]], [[Fear of Missing Out|Fear of Missing Out]], [[Endowment Effect|Endowment]] <br> | ||
'''Multipliers:''' Urgency, Investment | '''Multipliers:''' Urgency, Investment <br> | ||
'''Detailed Description:''' The lost value of a thing (object, opportunity) is perceived to be greater than the gained value would be of that same thing. *Losing $20 hurts more than finding $20 feels good. <br> | '''Detailed Description:''' The lost value of a thing (object, opportunity) is perceived to be greater than the gained value would be of that same thing. *Losing $20 hurts more than finding $20 feels good. <br> | ||
== '''Examples | == '''Examples''' == | ||
'''Use Case Example(s):''' An advertisement presents a "limited time offer" to induce loss aversion in the target who is averse to losing the opportunity. <br> | '''Use Case Example(s):''' An advertisement presents a "limited time offer" to induce loss aversion in the target who is averse to losing the opportunity. <br> | ||
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'''Example(s) From The Wild:''' A phishing email threatens loss of access to an account unless the recipient immediately clicks on the enclosed link to reset the account credentials.<br> | '''Example(s) From The Wild:''' A phishing email threatens loss of access to an account unless the recipient immediately clicks on the enclosed link to reset the account credentials.<br> | ||
== '''Comments | == '''Comments''' == | ||
== '''References | == '''References''' == | ||
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic perspectives, 5(1), 193-206. | Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic perspectives, 5(1), 193-206. | ||
McIntyre, D. L., & Frank, R. (2021). No Gambles with Information Security: The Victim Psychology of a Ransomware Attack. In Cybercrime in Context: The human factor in victimization, offending, and policing (pp. 43-60). Cham: Springer International Publishing. | McIntyre, D. L., & Frank, R. (2021). No Gambles with Information Security: The Victim Psychology of a Ransomware Attack. In Cybercrime in Context: The human factor in victimization, offending, and policing (pp. 43-60). Cham: Springer International Publishing. | ||
Latest revision as of 16:12, 7 August 2024
Loss Aversion
Short Description: Value of a loss is weighed more heavily than the value of a gain.
CAT ID: CAT-2022-079
Layer: 8
Operational Scale: Tactical
Level of Maturity: Well-Established
Category: Vulnerability
Subcategory: Cognitive Vulnerability
Also Known As: Prospect Theory
Description
Brief Description: Losses inflict greater significance
Closely Related Concepts: Prospect Theory
Mechanisms: Scarcity, Fear of Missing Out, Endowment
Multipliers: Urgency, Investment
Detailed Description: The lost value of a thing (object, opportunity) is perceived to be greater than the gained value would be of that same thing. *Losing $20 hurts more than finding $20 feels good.
Examples
Use Case Example(s): An advertisement presents a "limited time offer" to induce loss aversion in the target who is averse to losing the opportunity.
Example(s) From The Wild: A phishing email threatens loss of access to an account unless the recipient immediately clicks on the enclosed link to reset the account credentials.
Comments
References
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic perspectives, 5(1), 193-206.
McIntyre, D. L., & Frank, R. (2021). No Gambles with Information Security: The Victim Psychology of a Ransomware Attack. In Cybercrime in Context: The human factor in victimization, offending, and policing (pp. 43-60). Cham: Springer International Publishing.
