Notebook & Site Glossary:

A B C D E F G H I L N O P R S T U

Labor Economics

Labor economics is a branch of economics that focuses on the dynamics of labor markets, the behavior of employers and employees, and the factors influencing employment, wages, and productivity. It examines how labor markets operate, the roles of supply and demand in shaping employment outcomes, and the impact of various policies and economic conditions on the labor force.

Logotherapy

A form of psychotherapy developed by Viktor Frankl that emphasizes the importance of finding meaning in life, particularly during times of suffering or adversity. The word "logotherapy" comes from the Greek word logos, meaning " meaning," and it is sometimes referred to as the "therapy of meaning."

Key Principles of Logotherapy:

The Will to Meaning: Frankl proposed that the primary human drive is not the pursuit of pleasure (as Freud suggested) or power (as Adler suggested), but rather the search for meaning in life. People are motivated by the need to find a sense of purpose and significance, even in the face of suffering.

Freedom of Choice: Logotherapy emphasizes that, while we cannot always control our circumstances, we have the freedom to choose our attitude toward those circumstances. This freedom allows us to find meaning in any situation, even in the most difficult or painful ones.

Responsibility: With the freedom to choose comes the responsibility to act in ways that align with one's values and purpose. Frankl believed that finding meaning in life requires taking responsibility for one's choices and actions.

Meaning in Suffering: One of the central ideas of logotherapy is that suffering, while inevitable, can be transformed into a meaningful experience. Frankl famously wrote that “suffering ceases to be suffering at the moment it finds a meaning.” In the context of extreme suffering, such as his own experiences in concentration camps, Frankl believed that the ability to find meaning in pain could help individuals survive and endure.

Self-Transcendence: Frankl emphasized that meaning often comes from transcending oneself—looking beyond one’s own needs and desires to help others or contribute to a greater cause. It is through self-transcendence that people often discover their greatest sense of purpose.

Loss Aversion

Loss aversion is a concept in behavioral economics and psychology that describes people’s tendency to prefer avoiding losses over acquiring equivalent gains. In other words, the pain of losing something is psychologically more intense than the pleasure of gaining something of the same value. This idea, which is a core component of prospect theory, helps explain why individuals often make decisions that prioritize loss prevention—even at the cost of missing out on potential gains.

Loss-Aversion Principle

A key concept in behavioral economics and psychology, which states that people tend to prefer avoiding losses over acquiring equivalent gains. In other words, the pain of losing something is psychologically more significant than the pleasure of gaining something of equal value. This principle was first introduced by psychologists Daniel Kahneman and Amos Tversky as part of Prospect Theory, which describes how people make decisions under risk and uncertainty.

Index Of Tactical Notebook Articles In Order Of Suggested Reading:

This index is a revision of our now removed Legacy Member Handbook series. New articles are added over time and the index adjusted accordingly. Visist the “Updates” environment (linked in the main navigation menu) to get up to speed or see when new content is added or changes have been made to existing articles.