Loss aversion prevents people from experimenting because experimentation requires risking what you already have; companies institute 'innovation budgets' separate from profit requirements, which constrains the ability to experiment effectively.
causalpending
Speaker
Unidentified Speaker — Ravi Gupta (Sequoia) Opens Up About The Realities of Succes… [gXJAnh-iSTc]Evidence Quote
“you have to experiment, and you'd have to risk something that you already have... And so, people put in the constraint of 'I have a innovation budget. I have I want to keep my profits at this level.'”
Source
Ravi Gupta (Sequoia) Opens Up About The Realities of Success | E164— The Knowledge Project PodcastCreated: 8/11/2026, 12:54:44 AM
My Notes
Loading notes...