As I was reading an article, I came across an interesting statement; “People are risk averse when it comes to gains and risk seeking when it comes to losses.” What this essentially means is cleared by an example:
If a person is given two options: 50% chance of winning 1000/- or 100% chance of winning 500/-; most of the people will choose the second option of having a sure-shot chance of winning 500/-; thereby aversing or avoiding the risk involved in the first option. If you don’t agree with this postulate and argue that you will choose the first option; lets increase the stakes: 50% chance of winning 1 crore or 100% chance of winning 50 lakhs ??
Similarly, when it comes to losses we tend to choose the option involving the risk ( risk-seeking) as in given a choice; what will you choose: 50% chance of losing 1000/- or 100% chance of losing 500/- ?? An average individual will think of trying his luck and thereby choose the first option.
The whole scenario becomes more interesting when you have multiple options:
100% chance of winning 100/-
50% chance of winning 200/-
25% chance of winning 400/-
10% chance of winning 1000/-
One can easily note that the expected value in each case is same. Based on the choices you make, you are either risk-averse or risk-seeker.
Enough of this mathematical probabilistic logic and let’s move towards the application part. After realizing the beauty of this statement, the first thought that came to my mind was: can this logic be applied in inter-personal relationships ?? Can this statement be used to explain why people behave in a certain way towards different people?? After pondering for a long time and connecting the dots, I could find that certain characteristics can be explained by this postulate.
Why do we take some people for granted and care more for others ?? Why do couples feel that the spark is now missing in their relationship ?? Why are we so emotional for somebody and don’t give a damn to others?
“In my quieter moments, I sometimes reflect on the fact that we generally take the people we love the most for granted. Until we lose them. Then we take long, silent walks and pray for a second chance to treat them the way they deserved to have been treated.” : The Leader Who Had No Title ( Robin Sharma )
I would like to put my two cents and add that we take the people who love us the most for granted. This is brutally honest and true. The moment we realise that a certain individual will always be there for us, we lose his/her importance. We specially care for the feelings of those who we fear to lose.
Can I frame it mathemetically ?? Yes..
( to be continued)