Thinking Err0rs

If we are offered a coin toss in which we may lose $10, we will on average ask for a potential win of $20. Why is it that we are more sensitive to losses than to equivalent gains? How can we avoid making hasty, irrational decisions when we deal with an immediate loss, or the possibility of a loss?

So, how do we know when to use our gut? Roughly speaking, if we are making comparisons based on few features, we should use our rational thinking abilities. We should analyze the available data. If there are many features, we are better off using our gut.

Our brain reacts more strongly to unexpected rewards than to those that are expected. This is what slot machines exploit. You can apply this through random, positive actions. How about sending a thank you note to a customer now?