Chapter 16: Exercises — Loss Aversion and the Streak Mechanic

Section I: Comprehension and Recall

Exercise 1 [Short Answer] Define loss aversion in your own words and state the approximate loss aversion ratio identified by Kahneman and Tversky. Why is this ratio psychologically significant for platform designers?

Exercise 2 [Short Answer] Describe the three key components of Prospect Theory that distinguish it from classical expected utility theory. How does each component relate to digital behavior?

Exercise 3 [Short Answer] Explain the evolutionary basis for loss aversion. Why might a tendency to weight losses more heavily than gains have been adaptive in ancestral environments but potentially maladaptive in digital ones?

Exercise 4 [Identification] Identify and briefly describe three real-world manifestations of loss aversion discussed in the chapter (endowment effect, status quo bias, sunk cost fallacy). Give one digital example of each that was NOT mentioned in the chapter.

Exercise 5 [Short Answer] When did Snapchat introduce the Snapstreaks feature and what was its basic mechanic? What distinguishes Snapstreaks from most other streak mechanics in terms of social design?

Section II: Analysis and Application

Exercise 6 [Analysis] A friend tells you: "I'm so motivated by my Duolingo streak — it really helps me stay consistent with my Spanish." Using concepts from this chapter, analyze this statement. Is your friend describing habit formation, loss-aversion-driven compulsion, or something in between? What additional information would you need to determine which?

Exercise 7 [Scenario Analysis] You are a 16-year-old who has a 200-day Snapchat streak with your best friend. Your family is going camping for a weekend with no cell service. Describe, using psychological terminology from this chapter, the likely emotional experience you would have. What design features created this experience?

Exercise 8 [Comparative Analysis] Compare the streak mechanics used by Snapchat, Duolingo, and GitHub. In what ways are they similar? In what important ways do they differ? Which do you think is most likely to produce compulsive behavior, and why?

Exercise 9 [Application] Apply Deterding et al.'s gamification framework to analyze the LinkedIn profile completion mechanic. Is this an example of gamification that serves user goals or undermines them? Support your answer with specific evidence from the chapter.

Exercise 10 [Critical Analysis] The chapter describes the "streak freeze" as having the structure of a "protection racket." Evaluate this characterization. Is it fair? What are its strongest and weakest points? How might a Duolingo product manager respond?

Exercise 11 [Psychological Analysis] Explain the Zeigarnik effect and describe how it operates differently from loss aversion. Could both operate simultaneously in the context of a progress bar mechanic? Give a specific example.

Exercise 12 [Case Application] Using the diagnostic criteria for compulsive engagement described in Section 16.7, analyze the following user behavior: "I complete my Duolingo lesson every day, even when I'm exhausted. I do the shortest lesson available. I feel annoyed when I open the app. But I can't imagine losing my 400-day streak." How many criteria for compulsion does this description satisfy?

Section III: Empirical Engagement

Exercise 13 [Research Review] Summarize the key findings from the research literature on Duolingo streaks and learning outcomes described in Section 16.8. What methodological limitations should be noted when interpreting these findings?

Exercise 14 [Research Design] Design a study to test whether streak mechanics increase anxiety in adolescent social media users. Specify: (a) your research question, (b) your sample, (c) your methodology, (d) your measures, (e) your control conditions. What ethical considerations would your study require?

Exercise 15 [Data Interpretation] The Velocity Media case study states that daily active user counts increased by 14% after the streak feature launched. A product manager uses this as evidence that the streak feature was successful. An ethics researcher uses the same data to argue the feature was harmful. Write one paragraph from each perspective, using the same data point.

Exercise 16 [Literature Connection] Valkenburg and colleagues' research found that specific platform features, not overall use time, predict negative psychological outcomes. Why is this finding methodologically important for the study of social media effects? What implications does it have for platform regulation?

Section IV: Ethical Reasoning

Exercise 17 [Ethical Analysis] Evaluate streak mechanics against three ethical principles: honesty, respect for autonomy, and harm avoidance. For each principle, state whether typical streak implementations satisfy it and why or why not.

Exercise 18 [Stakeholder Analysis] Identify five stakeholders affected by Duolingo's streak mechanic: (1) casual users, (2) users with streak anxiety, (3) users who pay for streak freezes, (4) investors, (5) language learning researchers. Describe the interests of each and identify where their interests conflict.

Exercise 19 [Policy Design] You are a regulator tasked with drafting a rule governing streak mechanics for applications used by minors. Draft three specific regulatory requirements that would address the harms identified in this chapter while preserving legitimate uses of streak mechanics.

Exercise 20 [Moral Responsibility] The chapter argues that the "gap between intent and effect is not a defense." Do you agree? Consider a designer who genuinely believed streak mechanics would help users form positive habits. What standard of care should be expected of technology designers? Does the availability of psychological research on loss aversion change your answer?

Exercise 21 [Comparative Ethics] Compare the ethics of the following three scenarios: (a) a casino that uses variable reward schedules to keep gamblers playing; (b) a social media platform that uses streak mechanics to keep users engaging; (c) a fitness app that uses streak mechanics to keep users exercising. Rank these from most to least ethically concerning and defend your ranking.

Section V: Design Challenges

Exercise 22 [Redesign Exercise] Redesign Snapchat's streak mechanic to preserve its stated benefit (encouraging consistent communication) while eliminating or reducing the loss-aversion exploitation. What specific design changes would you make? What trade-offs would these changes involve?

Exercise 23 [Design Analysis] Describe a streak mechanic that you believe would be genuinely beneficial — one that supports intrinsic motivation rather than exploiting loss aversion. What features would it have? What features would it deliberately avoid? How would you test whether it was working as intended?

Exercise 24 [Interface Design] GitHub's contribution graph produces streak culture without an explicit streak counter. Design an alternative contribution visualization that would give developers useful information about their coding patterns without triggering streak-anxiety. Describe the design in detail.

Exercise 25 [Feature Audit] Conduct a "loss aversion audit" of three apps on your phone. For each app, identify: (a) any streak mechanics, (b) any progress bars or completion percentages, (c) any features that reset to zero, (d) any features that generate "streak at risk" type notifications. Assess the likely psychological effects of each.

Section VI: Personal Reflection

Exercise 26 [Reflection] Think of a time when you maintained a behavior primarily because of fear of losing a streak or accumulated progress rather than because you genuinely wanted to. Describe the experience using psychological vocabulary from this chapter. What did it feel like? Did you eventually break the streak? What happened?

Exercise 27 [Self-Assessment] Which of the following best describes your typical relationship with app-based streaks? (a) I find them genuinely motivating and they help me reach my goals. (b) I feel anxious about breaking them but they keep me engaged with things I care about. (c) I feel anxious about breaking them and maintain them even when I do not care about the underlying activity. (d) I deliberately avoid or ignore streak mechanics. Regardless of your answer, analyze the psychological mechanisms that explain your response.

Exercise 28 [Observation Exercise] For the next week, pay attention to any time you feel anxiety or urgency related to an app or digital platform. Note: (a) what triggered the feeling, (b) what the platform was telling you (notification, counter, warning), (c) what action you took or wanted to take, (d) how you felt after. Report your observations and analyze them using the chapter's framework.

Section VII: Integration and Synthesis

Exercise 29 [Cross-Chapter Integration] Chapter 15 discussed cognitive biases as a "field guide" for dark pattern design. Using Chapter 15's framework alongside Chapter 16's content, analyze how streak mechanics combine multiple cognitive biases simultaneously. Which biases are involved, and how do they interact?

Exercise 30 [Synthesis Essay] In 500-750 words, argue for or against the following proposition: "Streak mechanics are fundamentally incompatible with genuine habit formation and should be prohibited in applications used by minors." Use evidence from the chapter to support your argument, and acknowledge the strongest counterarguments.

Exercise 31 [Historical Comparison] The chapter situates streak mechanics within a longer history of persuasion technology. Identify a pre-digital analog to the streak mechanic — a non-digital practice that similarly exploits loss aversion to drive repeated behavior. Analyze the comparison: in what ways is the digital version similar to and different from its historical analog?

Exercise 32 [Industry Perspective] Write a 300-word internal memo from the perspective of Marcus Webb, responding to Dr. Johnson's concerns about the streak feature. Use the arguments available to a product manager who genuinely believes the feature is beneficial. Then write a 200-word response from Dr. Johnson that addresses Marcus's specific arguments.

Exercise 33 [Legal Analysis] Several advocacy groups have argued that streak mechanics targeting minors should be regulated under consumer protection law. Research the Children's Online Privacy Protection Act (COPPA) and consider whether its framework could be extended to cover psychological design harms. What legislative changes would be required?

Exercise 34 [Theory Application] Self-determination theory (SDT) predicts that extrinsic motivators undermine intrinsic motivation. Prospect Theory predicts that losses produce more motivation than equivalent gains. Under what conditions might these two theories make conflicting predictions about streak mechanics? How would you design a study to test which effect dominates?

Exercise 35 [Capstone Project] Choose one platform that uses streak mechanics (Snapchat, Duolingo, GitHub, LinkedIn, or another of your choice). Conduct a comprehensive psychological analysis of its streak design using all major concepts from this chapter: loss aversion, sunk cost fallacy, Zeigarnik effect, intrinsic vs. extrinsic motivation, gamification theory, and the distinction between habit formation and compulsion. Your analysis should be 800-1,200 words and conclude with a specific set of design recommendations.