

Why Recessions Suck More Than Expansions Rock - gsaines
http://www.georgesaines.com/?p=424

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dhruvbird
It's simple really. If you increase the value of 100 by 10% and then decrease
the resultant by 10%, you get an overall reduction in value (even if you do it
the other way around) ;)

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olalonde
Point 3 refers to loss aversion: <http://en.wikipedia.org/wiki/Loss_aversion>

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gsaines
I have read that in studies, people require a gain of $2 to make up for the
loss of $1, and it would have illustrated the point beautifully, but I
couldn't find a citation. Alas!

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olalonde
I first read about it in Dan Ariely's "Predictably Irrational".

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fiesycal
I enjoyed the post but I'm struggling to figure out exactly the point it was
trying to make?

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gsaines
I found the result worthwhile as a counterweight to negative thinking. I
showed the draft to a close friend and he had a similar reaction which was "so
what?" I fleshed out the conclusion a bit more, but you're right that it still
doesn't have a strong takeaway. I might just be too wrapped up in my interest
in empirical studies of human happiness to write a really useful blog article
on the topic, but I've got to keep trying! :)

