Choiceology with Katy Milkman cover image

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

Choiceology with Katy Milkman

NOTE

The Realization Effect and Cutting Losses

The Realization Effect explains that putting past losses behind us allows for clear-headed risk decisions. Holding on to losing situations leads to unwise risks and regrets. History illustrates British struggles versus American success in the American Revolution due to different risk approaches. The key takeaway is to take breaks to reset and realize losses in risky situations to avoid making regrettable decisions.

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