The loss sensitivity effect means that people are different in sensitivity to loss and gain. People are more sensitive to loss than gain. That is, the pain caused by the decrease of wealth is not equal to the happiness caused by the increase of the same amount of wealth. The former is greater than the latter.
According to the above definition, which of the followings belongs to the loss sensitivity effect?
People will only accept a gambling that might lose $20 if they might win $20.