Loss Aversion

(A.) You have been given $1,000.00. Now select one of the following;

1. Guarenteed gain of $500.00.
2. Take a coin flip. You call it right you get $1,000.00. You call it wrong and you get nothing.

Which do you choose? (Write it down. Just keeping you honest!)

(B.) You have just been given $2,000.00. Now select one of the following;

1. Gaurenteed loss of $500.00.
2. Take a coin flip. You call right you lose nothing. You call it wrong you lose $1,000.00.

Which do you choose? (You wrote down the first one. Write down your answer for B too!)

Typical Answer (A.) Option A: Sure gain of $500.00.
Typical Answer (B.) Option B: Even chance to lose or gain.

Why is this interesting?

The outcomes are identical for option A (you end up with $1,500.00)

The outcomes are identical for option B (you end up with either $1,000.00 or $2,000.00)

Yet your selection is different...

We are more willing to take a risk to avoid a loss.

We are more conservative in order to lock in a gain.

This is said to be because we feel the pain of a loss much more strongly than the please of an equivalent gain...

... we feel the pain of an equivalent loss twice as strongly as the pleasure of an equivalent gain.

Bend, OR

This past weekend I got to spend Easter outside of the rain shadow of McMinnville and over the pass in the high dessert of Bend. The drive over was clear of snow and the mountains and lakes were beautiful. We got to see a good pack of Elk coming back down the pass as well. We arrived late afternoon, but in tme to hit the trails near the Old Mill district for a shake out fun. It was a very nice change from the same roads we run every day back at school. Dry snow was even a nice change from the persistent soppiness that is the October-to-April rain of the Willamette Valley.

The juniper, pine and sage made for a wide open space very different than the surrounding mountains and forested mountain sides of the Rogue Valley. I am told that the mountains around Bend can be seen on most clear days and are pretty darn impressive, but unfortunately the snow was falling on the mountains and the clouds wouldn't clear enough for us to get a good view in the 48 hours I was there. An additional visit is in order to appreciated the skyline and the transition from rolling grey to green that apparently occurs in the summer months.


The area was really nice and clean and active. Saw really pretty, large homes most everywhere I went and there were lots of shops and nice restraunts all over the place. There were many parks and paths along the river and throughout town. Although Bend is hurting economically, possibly even worse than a majority of the state, store space was pretty much all filled and there was not an large number of for sale signs or empty homes that i noticed, which is encouraging and promising to see.

Besides the change of scenery I was also able to enjoy a huge amount of hospitality and share in a family easter weekend in Bend since I didn't make it down to my own home and family for their festivies. You know that Easter just isn't the same without a hurd of small children under the influence of a large amount of sugar.

I miss my big family holidays a lot so it was really nice to be surrounded by that comfortable and familar experience that is only exists when the familiy comes together. Lots of good company and good food. Made me think about what everyone was doing back home and how much fun Ashley, Hunter, Jayden, Austin and Robby must all be having running around looking for eggs. It made me think about Easter at Belindas and how there would always be the eggs that were hidden way out of our searching capabilities or at our home when we would be finding the tough eggs for weeks after. Funny what you remember.

All in all, it was a really fun trip and a really great weekend. I am very thankful for the hospitality and feeling so welcome in Bend. I am deffinately excited to make another trip to the area, especially if I can work in some time in at the surrounding lakes and mountain trails as it starts to warm up this spring (... it has to get warm eventually right?)