Suppose Whitney is willing to pay $200 to buy a new phone. Loss aversion implies that if Whitney already had just bought the phone, you would:

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Loss aversion is the tendency to experience losses as more painful than the pleasures that result from gains of the same magnitude. In this case, losing the phone would be more painful than the pleasure associated with getting the phone, so you would have to pay Whitney more than $200 to part with it.

Suppose Whitney Is Willing to Pay $200 to Buy a New