Loss aversion means that commitment strategies that generate potential losses are more likely to change behaviour than strategies that generate the equivalent money gain.

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Loss aversion is a well-known cognitive bias that suggests that people are more likely to change their behavior when faced with potential losses rather than potential gains of the same value. This means that commitment strategies that generate potential losses, such as financial penalties for not meeting a goal, are more effective in changing behavior compared to strategies that offer equivalent money gains.

Loss Aversion Means That Commitment Strategies That Generate Potential Losses