Fear And Loss Aversion Experiments

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Nowadays, social science is becoming more and more popular to experiment and speak with data, especially behavioral economists. In general, they all take college students as subjects on campus, but the 2010 ‘The Economist’ reported that the experiment is different: two economists from the University of Toronto and the University of Chicago arrived in China. A factory that produces electronic products took an experiment from a Chinese worker. The workers did not know that they had become subjects. In the beginning, some workers were told that if you can complete this week's production tasks, you will receive a bonus of 80 yuan. Other workers were told that you have a bonus of 80 yuan this week, but if you can't complete the production task, you will lose the bonus.
Do not all get 80 yuan more to …show more content…

According to a study conducted in 2010, if a person's brain's amygdala is damaged, he will not lose his aversion!
These loss aversion experiments tell us that people always value negative feelings more than positive ones. Psychology also has a term for this more general phenomenon called negativity bias and loss aversion can be considered as a type of negative prejudice.
Fear and adventure are two very basic human emotions. Evolutionary psychology believes that fear comes from the person's self-protection instincts, and the risk comes from the person's courtship instinct. Let people imagine a fear scenario before doing a loss aversion experiment, and he will become even more disgusted with the loss. Let people first imagine a romantic plot, he will become less loathing loss. Fear makes people afraid of loss, romance makes people love adventure. But the importance of these two emotions is not the same. People have their own protection instincts at birth and courtship instincts only grow up. Evolution has made the fear in our brains higher than romance. Perhaps this is the reason for the existence of negative