Good! Actually Kahmenan argues that loss aversion and/or status quo bias is a mighty conservationary force (in Thinking Fast and Slow). I think that is quite right—generally loss aversion should make us fearful of trying out new things. Also progress is seldom pareto optimal—even thought the majority might gain, a small minority might lose. Due to loss aversion, they will be much more vocal than those who gain—which might stop progress in its tracks (cf. various Luddite protests against new technologies).
In fact, because of loss aversion, it’s hard to persuade people we need to change, in case you can’t argue that things have already changed for the worse—and we need to change them back!
Also progress is seldom pareto optimal—even thought the majority might gain, a small minority might lose. Due to loss aversion, they will be much more vocal than those who gain—which might stop progress in its tracks (cf. various Luddite protests against new technologies).
Good! Actually Kahmenan argues that loss aversion and/or status quo bias is a mighty conservationary force (in Thinking Fast and Slow). I think that is quite right—generally loss aversion should make us fearful of trying out new things. Also progress is seldom pareto optimal—even thought the majority might gain, a small minority might lose. Due to loss aversion, they will be much more vocal than those who gain—which might stop progress in its tracks (cf. various Luddite protests against new technologies).
In fact, because of loss aversion, it’s hard to persuade people we need to change, in case you can’t argue that things have already changed for the worse—and we need to change them back!
Interesting point, hadn’t thought of that.