Science and Gamer Blogs

I've been filling my Gaming Blog more and more with my science musings. It kills my readership according to my Analytics and I can understand why. Still, my facination will not stop.

lately I've thought about Loss Aversion since i've seen it often enough in human behavior and it is considered a "irrationality". Now, I'm on the stance that Loss Aversion needs context.

It is considered an irrationality when the effort or resources that go into minimizing loss, is less than the potential gain if that effort was used to increase gains.

So if I had a life style that made me spend Php15,000 a month, and I had 10 hours free to use up, I'm more likely to spend the 10 hours a month reducing my php15,000 by 10% or 1,500 than spending the 10 hours earning Php2,250.

This irrationality is very touchy because, i find it completely rational if you change some parameters. Here in the Philippines and, from what I hear: India, there is a mentality that there is a finite amount of opportunities. If opportunities are finite, the equation above begins to change.

If I tap out the resource that grants me $2,250 or 15% against my expenses in a month I may be I'm stuck with the life-style adjustment I made when I went with the gains. Behavioral Change is ouch, and with introspection it is a whole lot of work to change into a more sustainable behavior. You can read all the Emotional Intelligent and Self Help books you can buy, it doesn't really change the real cost or work changing will entail. Sure, some beneficial irrationalities and biases may come out of it, but again the real cost doesn't change.

Damn, these are the boring things that get me sometimes. Behavioral Change Cost.

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