September 2013
Beginner
320 pages
6h 20m
English
Content preview from 101 Business Ideas That Will Change the Way You Work
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IDEA #2
If you fear losing, you’re more likely to lose out
We are naturally hard-wired to fear losses much more than we value gains – this can severely impair sensible decision-making in business.
What you need to know
Consider this:
You are offered a gamble on the toss of a two-sided coin.
- If you lose, you pay £100.
- How much would you demand as payment for winning to take the gamble?
What figure did you give? Most probably – like the majority of people offered this gamble – it was somewhere between £200 and £300. This means that you value avoiding losing around two to three times more than winning. This economically irrational preference ...
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