According to Kahneman and Tversky, decision makers are generally loss-averse, i.e. they find it more painful to consider the prospect of an actual loss than the prospect of losing the possibility of a gain. This paradoxical decision pattern is called the:

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Prospect theory, developed by Daniel Kahneman and Amos Tversky, explains how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. It highlights how people value gains and losses differently, leading to decisions that deviate from expected utility theory. The theory specifically addresses loss aversion, where losses are felt more intensely than gains.

According to Kahneman and Tversky, Decision Makers Are Generally Loss-Averse