I&#x27;d also add that loss aversion&#x27;s supposed &quot;reference dependence&quot; is addressed by a more fundamental concept, a cognitive bias: anchoring[1].<p>It&#x27;s interesting how these (especially pertaining behavioral economics and behavioral studies in general) create compound ideas from combinations of various fundamental ideas. Sometimes, it adds value. Other times, it simply obfuscates the truth.<p>1. <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Anchoring" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Anchoring</a>