Notes by Lex Toumbourou

Schell describes Kahneman and Tversky's Prospect Theory as applied to games, in that players will be willing to pay a premium to avoid losses - they may take a lower Expected Value option if it means less chance of regret. Even more surprising, players will be willing to take risks to avoid losses. Think of a gambler who lost a little money, they may be willing to gamble more money to avoid a little regret. Further described in Wikipedia article on Loss adversion.

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• Confirmation Bias