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Consider these statements. (i) People generally feel the pain of a loss more strongly than the pleasure of an equivalent gain. (ii) Providing more product disclosure always improves consumers' decisions.
Statement (i) is true: loss aversion is a central finding of prospect theory (Kahneman 2012, on ASIC's Exam preparation guidance v6.0 reading list). Statement (ii) is false: ASIC and the AFM's REP 632 (Oct 2019) found that disclosure is often ineffective and can backfire, and choice overload research shows more information can lead to worse or avoided decisions.
'Always' is wrong here because ASIC's own research shows the opposite can happen.
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