Loss Aversion Simulator

Discover your personal loss-aversion score โ€” the psychological bias quietly costing you wealth. Based on Nobel Prize-winning research by Kahneman and Tversky.

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Free Tool ยท Financial Psychology

The Loss Aversion Simulator

Nobel-winning behavioral research shows most people feel the sting of losing money roughly twice as intensely as the pleasure of gaining the same amount. This short simulator estimates your personal loss-aversion score โ€” and what it might be quietly costing you.

  • 7 quick rounds โ€” about 90 seconds
  • No email, sign-up, or data collection
  • Grounded in Kahneman & Tversky's Prospect Theory
Round 1 of 7
๐Ÿช™

You're offered a simple coin-flip bet:

Heads โˆ’ $100
Tails + $250

Do you take this bet?

Your Result
2.25ร—
This is roughly the gain you needed before a loss felt "worth the risk"
Typical
0ร— (risk-neutral) 5ร— (highly loss-averse)

What this tends to look like with money

Based on Prospect Theory (Kahneman & Tversky, 1979/1992), which estimated a population-average loss-aversion coefficient (ฮป) of about 2.25 โ€” losses felt roughly 2.25ร— as strongly as equivalent gains. Later meta-analyses across many studies put the typical range closer to 1.5โ€“2.7ร—, varying by stakes and context. This tool is a simplified, single-session estimate for self-reflection โ€” not a clinical or diagnostic measurement.

This is an educational simulation for self-reflection and entertainment โ€” not financial advice or a clinical psychological assessment.