Cognitive Biases: Reference Dependence and Loss Aversion

Laurie Santos, a psychologist at Yale University, explains two of our classic economic biases: reference dependence and loss aversion. Using a classic scenario from Kahneman and Tversky’s studies, she explores how these two biases violate economic rationality and how they affect the choices we make every day.

Professor of Psychology at Silliman College at Yale University

Our research explores an age-old question: what makes the human mind unique? We test this question by studying the cognitive capacities of non-human animals. By comparing the cognitive abilities of non-human animals to those of humans, we can determine which domains of knowledge are unique to the human mind. At the Canine and Primate Laboratory (aka CapLab), we study the origins of human cognition by focusing on two different groups of non-human animals.

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