Loss Aversion
People feel losses twice as strongly as equivalent gains.
Explanation
Losing $100 feels much worse than gaining $100 feels good. This isn't logical, but it's how our brains work. We're wired to be more motivated by avoiding pain than by seeking pleasure. Understanding this bias helps explain why people stick with the status quo even when change would benefit them.
Real-World Example
Employees resist job changes even for higher pay because they focus on what they're losing (familiar colleagues, known routine) rather than what they're gaining. Customers won't switch to better products if it means 'losing' their current setup. Investors hold losing stocks to avoid 'realizing' the loss.
How to Apply
When proposing changes: frame in terms of what people will lose by NOT changing, not what they'll gain by changing. Use trial periods to reduce perceived loss. Make the status quo feel riskier than the change. When making decisions: ask 'Am I avoiding change just because I hate losing what I have?'