Ali Moeeny MD PhD bio photo

Ali Moeeny MD PhD

It has been a bit crazy so far. But I've been told only the first 100 years or so will be like that.

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Naturally we want to avoid losses. And it makes sense. Or at least it makes sense in many situations. But what does not make sense is our aversion to accept that we had losses in the past. Like, I don’t want to accept that I made a bad decision in the past and got a job that in retrospect was a waste of time and money. I have two choices. Admit that I have spent a few years of my life in a job that is not for me and move on to new things. Or avoid accepting the loss of these years and stay at the job making up justifications for why that has not been a lose.

It has been said that we weight losses almost twice as much as gains of equal value. Like if in making a decision I may lose a dollar the possible gains should be two dollars for us to consider it fair. Also I believe here the Weber-Fechner law also comes into play and losses grow exponentially faster in our mind than gains.

An additional issue here is that the losses that we need to admit to, before we can correct ourselves, are in the past so they feel real, while the possible gains are in future and don’t feel as real.

So it is hard to admit you were wrong and correct yourself. But you know that you need to do it. Everyday, until the end of your life. So buckle up.