Choiceology with Katy Milkman cover image

Choiceology with Katy Milkman

To Fight Another Day: With Guests Alex Imas & Mary Stockwell

Jun 3, 2024
Historian Mary Stockwell discusses American Revolutionary War strategies of retreat and regrouping. Behavioral scientist Alex Imas explains risk-taking after realizing losses. The podcast explores the impact of loss realization on decision-making and the benefits of taking breaks to reset risk preferences.
35:55

Podcast summary created with Snipd AI

Quick takeaways

  • Realized losses reset individuals' reference points, impacting their risk-taking decisions.
  • The Americans' ability to cut losses strategically contrasts with the British's unwise risk-taking in the American Revolution.

Deep dives

The Realization Effect on Risk-Taking Behavior

Realized losses reset individuals' reference points, impacting their risk-taking decisions. After paper losses, people tend to chase losses and take on more risk to recover. However, after realizing losses, individuals are less inclined to chase losses and take on less risk, aligning behavior with initial preferences.

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