Thinking, Fast and Slow · Daniel Kahneman

Loss aversion examples

Curated by · reviewed 2026-05-31

Loss aversion is our tendency to feel the pain of a loss about twice as strongly as the pleasure of an equal gain — so we work harder to avoid losing than to win. Here are clear, everyday examples of it in action:

What is loss aversion? Read the full idea →

5 examples of loss aversion

  1. Holding a losing investment too long

    Selling would "lock in" the loss, so people hold and hope it recovers — and often lose more. Realising the loss hurts more than the math says it should.

  2. "Offer ends tonight" urgency

    Marketers frame a deal as something you'll lose, not a neutral non-purchase. Missing out stings, so the deadline pushes you to act before you've really decided.

  3. Free trials that auto-charge

    Once the service feels like yours, cancelling feels like giving something up — so people keep paying for things they no longer use.

  4. Keeping clothes you never wear

    Throwing them out feels like wasting the money you already spent, even though the money is gone either way. The stuff stays in the closet for years.

  5. "Don't lose your bonus" at work

    Targets framed as a bonus you could lose motivate harder than the same money framed as a reward you could gain — the threat of loss does the work.

How to spot it in yourself

You'll forget most of this by next week.

That's just how memory works. Lock loss aversion in with a 5-minute active-recall session — spaced repetition, no signup.

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