loss-aversion-mmo
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Some Assembly Required: On MMOs and loss aversion
I've been reading a book called Scorecasting lately. It's basically an academic exercise in statistics and human behavioral analysis as it relates to the decisions made in both individual and team sports. One of the chapters touches on a theory called loss aversion, which is a psychological phenomenon first attributed to Daniel Kahneman and Amos Tversky. The theory is generally understood to mean that humans fear potential losses much more than they enjoy actual gains, and thus they often act in statistically irrational fashion to avoid said losses. We can also see principles of loss aversion at work in MMOs. In fact, I'd go so far as to posit that loss aversion is a large, if indirect, reason why many people play MMOs in the first place. It's also a major reason why sandboxes, virtual worlds, and games that feature some sort of tangible risk/reward mechanic have been in such dire straits since MMOs went mainstream. Follow me past the cut and see if you agree.
