Higher order risk preferences play a big role in how people make economic decisions. By looking at how people react to risks in terms of gains and losses, researchers found that our preferences change depending on the situation. For gains, we tend to be cautious and avoid taking big risks, but for losses, we are more willing to take risks. This goes against the idea that we prefer a mix of good and bad outcomes. This study shows that our risk preferences are influenced by whether we are dealing with gains or losses.