--- title: "Meaning & Key Takeaway of: The combination of loss aversion with…" description: "\"“The combination of loss aversion with mindless choosing implies that if an option is designated as the “default,” it will attract a large market share..." image: "https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg" --- # The combination of loss aversion with mindless choosing… ![“The combination of loss aversion with mindless choosing implies that if an option is designated as the “default,” it will attract a large market share. Default options thus act as powerful nudges.” quote by Richard H. Thaler](https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg) [Download](https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg) [Open image](https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg) > ““The combination of loss aversion with mindless choosing implies that if an option is designated as the “default,” it will attract a large market share. Default options thus act as powerful nudges.”” [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. People tend to stick with default options due to loss aversion and mindless choice, making defaults powerful tools for influencing behavior. **In simple terms:** Defaults guide choices because we avoid loss. Key Takeaway Design defaults wisely. Themes behavioral economics choice architecture loss aversion nudges decision making Mood analytical pragmatic Type educational informative When to use this quote - consumer choices - retirement savings - software settings - health plans Key Concepts psychology economics policy design Questions to Reflect On - Should defaults always favor the individual? - How can we balance influence and freedom? A Different Perspective Defaults can limit autonomy if overused. ★ ★ ★ ★ ★ No ratings yet [Aversion](https://sms4smile.com/quotes/about/aversion/) [Aversion Mindless](https://sms4smile.com/quotes/about/aversion-mindless-5801515/) [Choice](https://sms4smile.com/quotes/about/choice/) [Default Attract](https://sms4smile.com/quotes/about/default-attract-5801514/) [Investing](https://sms4smile.com/quotes/about/investing/) [Loss Aversion](https://sms4smile.com/quotes/about/loss-aversion-1118355/) [Market share](https://sms4smile.com/quotes/about/market-share/) [Mindless Choosing](https://sms4smile.com/quotes/about/mindless-choosing-5801516/) ## Related quotes > [“we will see, loss aversion operates as a kind of cognitive nudge, pressing us not to make changes, even when”](https://sms4smile.com/quotes/richard-h-thaler/we-will-see-loss-aversion-operates-as-a-kind-of-cognitive-nudge/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“Loss aversion helps produce inertia, meaning a strong desire to stick with your current holdings.”](https://sms4smile.com/quotes/richard-h-thaler/loss-aversion-helps-produce-inertia-meaning-a-strong-desire-to-stick/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“a single cockroach will completely wreck the appeal of a bowl of cherries, but a cherry will do nothing at all for a bowl…](https://sms4smile.com/quotes/daniel-kahneman/a-single-cockroach-will-completely-wreck-the-appeal-of-a-bowl-of/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [The concept of loss aversion is certainly the most significant contribution of psychology to behavioral economics.](https://sms4smile.com/quotes/daniel-kahneman/the-concept-of-loss-aversion-is-certainly-the-most-significant/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“In trying to make sense of this pessimism, Ridley, like Kahneman, sees a combination of cognitive biases and evolutionary psychology as the core of…](https://sms4smile.com/quotes/peter-h-diamandis/in-trying-to-make-sense-of-this-pessimism-ridley-like-kahneman-sees-a/) [Peter H. Diamandis](https://sms4smile.com/quotes/author/peter-h-diamandis/) > [“to taking an action that could make life even worse. Psychologists call this “loss aversion.” Research in cognitive”](https://sms4smile.com/quotes/jerome-groopman/to-taking-an-action-that-could-make-life-even-worse-psychologists/) [Jerome Groopman](https://sms4smile.com/quotes/author/jerome-groopman/) > [“Time and again, we let the fear of loss overpower rational decision-making and often make ourselves worse off just to avoid a potential loss.…](https://sms4smile.com/quotes/l-jon-wertheim/time-and-again-we-let-the-fear-of-loss-overpower-rational-decision/) [L. Jon Wertheim](https://sms4smile.com/quotes/author/l-jon-wertheim/) > [“Loss aversion refers to the relative strength of two motives: we are driven more strongly to avoid losses than to achieve gains. A reference…](https://sms4smile.com/quotes/daniel-kahneman/loss-aversion-refers-to-the-relative-strength-of-two-motives-we-are/) [Daniel Kahneman](https://sms4smile.com/quotes/author/daniel-kahneman/) > [“Having a long-term plan--and not casting it aside--is the key to dealing with our fear of loss (loss aversion).”](https://sms4smile.com/quotes/ori-brafman/having-a-long-term-plan-and-not-casting-it-aside-is-the-key-to/) [Ori Brafman](https://sms4smile.com/quotes/author/ori-brafman/) > [Loss aversion is a really disproportionate anxiety about stuff that doesn't matter very much. So for instance, if you lose $5, you feel really…](https://sms4smile.com/quotes/tim-harford/loss-aversion-is-a-really-disproportionate-anxiety-about-stuff-that/) [Tim Harford](https://sms4smile.com/quotes/author/tim-harford/) > [If competitors don't like our two to one advantage, dominating market share with both SP and DS, well, I've got bad news. Because we…](https://sms4smile.com/quotes/reggie-fils-aime/if-competitors-don-t-like-our-two-to-one-advantage-dominating-market/) [Reggie Fils-Aime](https://sms4smile.com/quotes/author/reggie-fils-aime/) > [In general, great companies prefer to grow 'organically,' as Wall Street likes to say. That is, from the inside out, by finding new markets…](https://sms4smile.com/quotes/alex-berenson/in-general-great-companies-prefer-to-grow-organically-as-wall-street/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [There are about 300,000 neighborhoods in the United States, and more than half of them have at least one millionaire living there. Most millionaires…](https://sms4smile.com/quotes/thomas-j-stanley/there-are-about-300-000-neighborhoods-in-the-united-states-and-more/) [Thomas J. Stanley](https://sms4smile.com/quotes/author/thomas-j-stanley/) > [“consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on…](https://sms4smile.com/quotes/greg-thain/consolidation-coupled-with-a-desire-among-the-survivors-to-restore/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [If you want to gain market share at your competitor's expense - look for a customer that's suffering from too much complexity and simplify…](https://sms4smile.com/quotes/peter-cohan/if-you-want-to-gain-market-share-at-your-competitor-s-expense-look/) [Peter Cohan](https://sms4smile.com/quotes/author/peter-cohan/) ## More by Richard H. Thaler > [“10. Calories count in New York City. The Big Apple recently adopted a law that requires fast-food restaurants with at least fifteen outlets in…](https://sms4smile.com/quotes/richard-h-thaler/10-calories-count-in-new-york-city-the-big-apple-recently-adopted-a/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“I began to have deviant thoughts about economic theory while I was a graduate student”](https://sms4smile.com/quotes/richard-h-thaler/i-began-to-have-deviant-thoughts-about-economic-theory-while-i-was-a/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“specific values to objects. When they have to give something up, they are hurt more than they are pleased if they acquire the very…](https://sms4smile.com/quotes/richard-h-thaler/specific-values-to-objects-when-they-have-to-give-something-up-they/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“Hundreds of studies confirm that human forecasts are flawed and biased. Human decision making is not so great either. Again to take just one…](https://sms4smile.com/quotes/richard-h-thaler/hundreds-of-studies-confirm-that-human-forecasts-are-flawed-and/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“John Rawls (1971) called the publicity principle. In its simplest form, the publicity principle bans government from selecting a policy that it would not…](https://sms4smile.com/quotes/richard-h-thaler/john-rawls-1971-called-the-publicity-principle-in-its-simplest-form/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“Our principal claim here is that patients and doctors should be free to make their own agreements about that right. If patients want to…](https://sms4smile.com/quotes/richard-h-thaler/our-principal-claim-here-is-that-patients-and-doctors-should-be-free/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“We are also greatly influenced by consumption norms within the relevant group. A light eater eats much more in a group of heavy eaters.…](https://sms4smile.com/quotes/richard-h-thaler/we-are-also-greatly-influenced-by-consumption-norms-within-the/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“People think about life in terms of changes, not levels.”](https://sms4smile.com/quotes/richard-h-thaler/people-think-about-life-in-terms-of-changes-not-levels/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“predictions can’t vary more than the thing being forecast.”](https://sms4smile.com/quotes/richard-h-thaler/predictions-can-t-vary-more-than-the-thing-being-forecast/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“When in a cold state, we do not appreciate how much our desires and our behavior will be altered when we are “under the…](https://sms4smile.com/quotes/richard-h-thaler/when-in-a-cold-state-we-do-not-appreciate-how-much-our-desires-and/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“Bargains and Rip-Offs”](https://sms4smile.com/quotes/richard-h-thaler/bargains-and-rip-offs/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“you want to nudge people into socially desirable behavior, do not, by any means, let them know that their current actions are better than…](https://sms4smile.com/quotes/richard-h-thaler/you-want-to-nudge-people-into-socially-desirable-behavior-do-not-by/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“A nudge, as we will use the term, is any aspect of the choice architecture that alters people’s behavior in a predictable way without…](https://sms4smile.com/quotes/richard-h-thaler/a-nudge-as-we-will-use-the-term-is-any-aspect-of-the-choice/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“What makes the bias particularly pernicious is that we all recognize this bias in others but not in ourselves.”](https://sms4smile.com/quotes/richard-h-thaler/what-makes-the-bias-particularly-pernicious-is-that-we-all-recognize/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) > [“people who are threatened with big losses and have a chance to break even will be unusually willing to take risks,”](https://sms4smile.com/quotes/richard-h-thaler/people-who-are-threatened-with-big-losses-and-have-a-chance-to-break/) [Richard H. Thaler](https://sms4smile.com/quotes/author/richard-h-thaler/) [Explore all 84 Richard H. Thaler quotes ](https://sms4smile.com/quotes/author/richard-h-thaler/) ## More Aversion quotes > [And indeed nothing but the most determined scepticism, along with a great degree of indolence, can justify this aversion to metaphysics. For if truth…](https://sms4smile.com/quotes/david-hume/and-indeed-nothing-but-the-most-determined-scepticism-along-with-a/) [David Hume](https://sms4smile.com/quotes/author/david-hume/) > [Society everywhere is in conspiracy against the manhood of every one of its members. The virtue in most request is conformity. Self-reliance is its…](https://sms4smile.com/quotes/ralph-waldo-emerson/society-everywhere-is-in-conspiracy-against-the-manhood-of-every-one/) [Ralph Waldo Emerson](https://sms4smile.com/quotes/author/ralph-waldo-emerson/) > [The scorn men express for a male who does housework is exceeded only by their aversion to a woman who doesn't](https://sms4smile.com/quotes/penny-kome/the-scorn-men-express-for-a-male-who-does-housework-is-exceeded-only/) [Penny Kome](https://sms4smile.com/quotes/author/penny-kome/) > [One of the greatest inhibitions to the development of human potential is the aversion to effective practice.](https://sms4smile.com/quotes/douglas-b-reeves/one-of-the-greatest-inhibitions-to-the-development-of-human-potential/) [Douglas B. Reeves](https://sms4smile.com/quotes/author/douglas-b-reeves/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [In my schoolboy days I had no aversion to slavery. I was not aware there was anything wrong about it. No-one arraigned it in…](https://sms4smile.com/quotes/mark-twain/in-my-schoolboy-days-i-had-no-aversion-to-slavery-i-was-not-aware/) [Mark Twain](https://sms4smile.com/quotes/author/mark-twain/) > [We must each learn to feel comfortable in our own uniqueness by rising above the fear of being wrong and the aversion to being…](https://sms4smile.com/quotes/iyanla-vanzant/we-must-each-learn-to-feel-comfortable-in-our-own-uniqueness-by/) [Iyanla Vanzant](https://sms4smile.com/quotes/author/iyanla-vanzant/) > [The unattractive thing about chauvinism is not so much the aversion to other nations as the love of one's own.](https://sms4smile.com/quotes/karl-kraus/the-unattractive-thing-about-chauvinism-is-not-so-much-the-aversion/) [Karl Kraus](https://sms4smile.com/quotes/author/karl-kraus/) > [Most people have an aversion to risk, my college economics professor told me. Which means they have to be rewarded to take on that…](https://sms4smile.com/quotes/michael-arrington/most-people-have-an-aversion-to-risk-my-college-economics-professor/) [Michael Arrington](https://sms4smile.com/quotes/author/michael-arrington/) > [Some people have a very strange idea that material success does not coincide harmoniously with self-realization, which is absurd. The aversion to material success,…](https://sms4smile.com/quotes/frederick-lenz/some-people-have-a-very-strange-idea-that-material-success-does-not/) [Frederick Lenz](https://sms4smile.com/quotes/author/frederick-lenz/) > [Usually I just let my songs do the talking. As a matter of fact I have long had an aversion to celebrities endorsing politics,…](https://sms4smile.com/quotes/john-fogerty/usually-i-just-let-my-songs-do-the-talking-as-a-matter-of-fact-i-have/) [John Fogerty](https://sms4smile.com/quotes/author/john-fogerty/) > [Once we're willing to confront our emotional suffering, we begin making choices based on attraction instead of aversion, love instead of fear. Where we…](https://sms4smile.com/quotes/martha-beck/once-we-re-willing-to-confront-our-emotional-suffering-we-begin/) [Martha Beck](https://sms4smile.com/quotes/author/martha-beck/) > [It is a happy thing that time quells the longings of vengeance and hushes the promptings of rage and aversion. I had left this…](https://sms4smile.com/quotes/charlotte-bronte/it-is-a-happy-thing-that-time-quells-the-longings-of-vengeance-and/) [Charlotte Bronte](https://sms4smile.com/quotes/author/charlotte-bronte/) > [“For a long time now a hint of aversion had lain on everything he did and experienced, a shadow of impotence and loneliness, an…](https://sms4smile.com/quotes/robert-musil/for-a-long-time-now-a-hint-of-aversion-had-lain-on-everything-he-did/) [Robert Musil](https://sms4smile.com/quotes/author/robert-musil/) > [In Tantric Buddhism our feeling is that there is no problem with the sensual world unless you have a tremendous attraction or aversion to…](https://sms4smile.com/quotes/frederick-lenz/in-tantric-buddhism-our-feeling-is-that-there-is-no-problem-with-the/) [Frederick Lenz](https://sms4smile.com/quotes/author/frederick-lenz/) [Browse all 266 Aversion quotes ](https://sms4smile.com/quotes/about/aversion/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“The combination of loss aversion with mindless choosing implies that if an option is designated as the “default,” it will attract a large market share. Default options thus act as powerful nudges.”", "creator": { "@type": "Person", "name": "Richard H. Thaler" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/richard-h-thaler/the-combination-of-loss-aversion-with-mindless-choosing-implies-that/", "about": { "@type": "Thing", "name": "Aversion" }, "@id": "https://sms4smile.com/quotes/richard-h-thaler/the-combination-of-loss-aversion-with-mindless-choosing-implies-that/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg", "contentUrl": "https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg", "url": "https://sms4smile.com/quotes/i/cc9/richard-h-thaler-8113_aversion_the-combination-of-loss-aversion-with-mi_743714.jpg", "width": 1080, "height": 1080, "caption": "“The combination of loss aversion with mindless choosing implies that if an option is designated as the…” — Richard H. Thaler", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Richard H. Thaler", "item": "https://sms4smile.com/quotes/author/richard-h-thaler/" }, { "@type": "ListItem", "position": 4, "name": "“The combination of loss aversion with...", "item": "https://sms4smile.com/quotes/richard-h-thaler/the-combination-of-loss-aversion-with-mindless-choosing-implies-that/" } ], "@id": "https://sms4smile.com/quotes/richard-h-thaler/the-combination-of-loss-aversion-with-mindless-choosing-implies-that/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```