Loss Ofversion - The Biggest Mistake in Making Decisions

Loss of version means that if i give you 50 dollars, the joy you get from it is smaller than the pain you'd feel if i took it away. This can really matter in the real world. There's good evidence that doctors make different decisions if you tell them that a treatment will help 90 % of people, then if you say it won't help ten%. Remember, you should always ignore sunk costs. They're sunk. Your decision needs to reflect the marginal costs and benefits that you fice now.