people tend to avoid taking risks-they are "risk averse"-when they are deciding among potential gains, potential positive outcomes.
by Barry Schwartz
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In "The Paradox of Choice: Why More Is Less," Barry Schwartz discusses how individuals often exhibit a tendency to avoid risks when faced with possible gains. This behavior, known as risk aversion, suggests that people prefer to stick with safer options rather than take chances that could lead to greater rewards. This mindset can impact decision-making processes, especially when individuals are evaluating various positive outcomes.

Schwartz highlights that this inclination towards caution can lead to a reduced sense of satisfaction and fulfillment. When people prioritize safety over potential benefits, they may miss out on opportunities that could enhance their lives. Therefore, understanding the psychological factors behind risk aversion is crucial for promoting better decision-making and encouraging individuals to embrace challenges that could lead to more enriching experiences.

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February 28, 2025

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