Ops Development & AI Practice

Oct 2, 2026 · R&D Management

Why Trying to Break Even After Losses Leads to Loss of Control

This article explores the psychological mechanisms behind loss-chasing behavior, referencing prospect theory and the break-even effect, and provides a practical framework to distinguish evidence-based adjustments from emotional doubling down, including pause triggers, risk budgets, post-loss reviews, and recovery conditions to prevent escalating losses.