Strong loss aversion is observed when the slope over losses at the reference point is steeper than the slope over gains.

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Loss aversion refers to the phenomenon where the pain of losing is psychologically about twice as powerful as the pleasure of gaining. In the context of the value function proposed by Kahneman and Tversky in Prospect Theory, this is represented by a steeper slope for losses relative to gains at the reference point, indicating that losses are felt more intensely than gains of the same magnitude.

Strong Loss Aversion Is Observed When the Slope Over Losses