Axiomempiricalv1
Losses loom larger than equivalent gains in human
Losses loom larger than equivalent gains in human psychology.
Why This Is an Axiom
This is Kahneman & Tversky's prospect theory finding about loss aversion. It is an irreducible empirical claim about human cognitive architecture that cannot be derived from other principles — it is a fundamental asymmetry in how humans weight outcomes.
Source Lessons
L-0451
The default option framework
Define good defaults so that the do-nothing option is acceptable.
L-0419
Financial agents
Agents for spending saving and investment decisions.
L-0456
Kill criteria
Define in advance what evidence would cause you to abandon a course of action.
L-0445
Reversible versus irreversible decisions
Spend minimal time on easily reversible decisions and maximum time on irreversible ones.