Biology of Business

Concept · Cognitive Bias: Attention and perception biases

Negativity bias

Origin: Rozin & Royzman, 2001

By Alex Denne

Biological Parallel

White-tailed deer remember predator encounter locations for 40+ days but forget profitable foraging patches within 3-5 days. Negativity bias: threats dominate memory more than opportunities. Meerkats remember snake den locations for an entire season but relocate productive insect patches weekly. The evolutionary logic: missing a food source costs a meal; missing a predator costs your life. Error asymmetry drives attentional weighting—bad is stronger than good because natural selection punishes underestimating threats (death) more than underestimating rewards (hunger). Stock markets reflect this: investors feel losses 2.5x more intensely than equivalent gains. Survival optimized for pessimism.