We're dealing with an ongoing research process and finding some noticeable pain points, specifically related to loss aversion (this is for a risk investments app).

After lots of brainstorming, we're still having a tough time in terms of reducing friction (our failure is validated by research), so I'd like to know if there is any tool, recommendation, research or paper dealing with loss aversion in general, preferably applied to the investments and risk of monetary loss subject.

Just to be clear: I'm well aware of principles of scarcity and loss aversion, and we have a behavioral psychologist on our team, so identifying the problem or why is it happening is NOT the issue. I'm looking for ideas and strategies to overcome this pain point, at least something we can test with users

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    en.m.wikipedia.org/wiki/Prospect_theory Try this for background reading Devin.
    – PhillipW
    Jul 9, 2017 at 9:50
  • Thanks @PhillipW, as. Aa a matter of fact I had it in my bookmarks because someone posted this link sometimes ago (probably you!). Very helpful indeed
    – Devin
    Jul 9, 2017 at 15:58
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    If you fancy a bit of background reading there are some nice examples from Tversky and Kahneman in chapters 16 and 17 of this book - the rest of book might also be interesting if you're interested in financial risk. amazon.co.uk/Against-Gods-Remarkable-Story-Risk/dp/0471295639
    – PhillipW
    Jul 9, 2017 at 20:28

1 Answer 1


I don't know if there's a magic bullet; you'd have to experiment (fun!). Finding the variables to manipulate would be critical. With just a cursory knowledge of your problem space, I'd try altering the framing of the information your users are given. That framing adjustment may make them more or less aversive to loss (by virtue of how much they view it as a loss).

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