Principles of Microeconomics / Unit 5 MIC 0424 short lesson, about 20 seconds
Loss Aversion and Framing
Captions available
The idea
Behavioral economics finds a loss weighs about twice an equal gain, in one attributed study, and that people judge a saving as a share of the price, not in dollars.
In practice
A ten-dollar saving moves a clock buyer and not a phone buyer.
Where people slip
Attributed findings that refine the model rather than replace it; the course reports both views, takes neither.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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