From Adrian Bowyer
In Kate Douglas’s article on the evolution of decision-making (12 November, p 38) the economic “irrationality” of human loss aversion is described – we are more upset at losing a certain amount than we are pleased by gaining it.
I have never understood why economists regard these as equivalent. Suppose I can live on the £1000 that I have. If I then gain £999, I am, of course, delighted. But if I lose £999, then that is a disaster.
This inequivalence is retained whatever amounts are involved. Regarding them as different is completely rational.
Bath, Somerset, UK
