The psychologists Daniel Kahnerman and Amos Tversky have shown when humans estimate the likelihood
or frequency of an event, we make that judgment based not on how often the event has actually occurred, but on how vivid the past examples are.
Overweighting Losses: In a seminal study on behavioral economics that outlined Prospect Theory,
Daniel Kahneman and Amos Tversky demonstrated what many of us who have had a tough weekend in Vegas know
to be true- losses tend to loom larger in our minds than gains.