Loss aversion

Losing something hurts more than gaining the same thing pleases.

Loss and scarcity Mainly on Cart pages
Where it applies

Three of the eight page areas.

HomepageNot typical CategoryNot typical SearchNot typical ProductAlso applies CartMainly here CheckoutAlso applies Post-purchaseNot typical

Not usually a sitewide principle. See everything at work on Cart pages

How to use it

Four ways to use it, and one to avoid.

  • State what the shopper already has and would give up, such as “your 10% code expires Friday”.
  • Tell shoppers when they have earned something, such as “you have qualified for free delivery”.
  • Show items genuinely held in the basket for a stated time.
  • Test loss wording against gain wording rather than assuming it wins.
  • Avoid: expiries or reservations that aren’t real, as a false limited-time claim is a banned practice under the DMCC Act 2024.
What the research found

Reproduced in 19 countries and found in real brand choices, though its size varies.

A meta-analysis of 607 estimates put the average loss aversion coefficient near 2.

A meta-analysis of 607 estimates by Brown and colleagues put the average loss aversion coefficient near 2, and a 19-country replication (4,098 people) reproduced 94% of the 1979 results, with some weakening. In real brand choices, a meta-analysis of 33 studies found loss aversion, but its size varied widely. Critics dispute how general it is.

Key research

Six sources, each checked.

Last reviewed

Kahneman & Tversky (1979) Prospect Theory: An Analysis of Decision under Risk Econometrica Read the source Tversky & Kahneman (1991) Loss Aversion in Riskless Choice: A Reference-Dependent Model Quarterly J. Economics Read the source Brown, Imai, Vieider & Camerer (2024)Meta-analysis Meta-analysis of Empirical Estimates of Loss Aversion J. Economic Literature Read the source Ruggeri and colleagues (2020)Replication Replicating patterns of prospect theory for decision under risk Nature Human Behaviour Read the source Neumann & Böckenholt (2014)Meta-analysis A Meta-analysis of Loss Aversion in Product Choice J. Retailing Read the source Hardie, Johnson & Fader (1993) Modeling Loss Aversion and Reference Dependence Effects on Brand Choice Marketing Science Read the source
Before you use it · UK law

Any expiry or reservation must be real: falsely stating that an offer is only available for a limited time is a banned practice under the DMCC Act 2024. Avoid exit messages that shame or pressure shoppers.

This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.