Concept · Cognitive Bias: Decision-making and judgment biases

Reference point dependence

Origin: Kahneman & Tversky, 1979

Biological Parallel

An elk that loses 10% of its territory experiences this as devastating loss; a challenger gaining the same 10% feels moderate success. Same land, opposite evaluations—reference points differ. Animals evaluate outcomes relative to status quo, not absolute terms. This dependence reflects that survival is relative to current state: the territory you have defines your baseline, and changes matter more than absolutes. Your salary satisfaction depends entirely on your reference point, not the number.