LLM bias

Loss Aversion Explained: Why Losses Hurt 2x More

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Loss Aversion Explained: Why Losses Hurt 2x More

Last updated: April 2026 Loss aversion is the behavioral tendency to feel the pain of a loss roughly twice as strongly as the pleasure of an equivalent gain. Daniel Kahneman and Amos Tversky quantified it in prospect theory (1979, 1992): the loss-aversion coefficient λ ≈ 2.25. It explains the disposition effect in trading, the endowment … Read more

Anchoring Effect: 7 Examples & Why It Tricks AI Too

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Anchoring Effect: 7 Examples & Why It Tricks AI Too

Last updated: April 2026 The anchoring effect is a cognitive bias where the first number you encounter distorts every judgment that follows, even when that number is obviously random. Discovered by Tversky and Kahneman in 1974, it inflates salary offers, real-estate prices, legal sentences — and, as 2025 research confirms, the outputs of large language … Read more