I agree with that general premise that loss aversion is not enough. I think that you are hinting at a larger point, which is that in general, evolution seems to have favored ratios rather than absolutes. While the author of the original article ridicules this concept as people being irrational, not only, as you point out, does this make sense when you consider that you are competing against others in the local population, but consider the economics of relative wealth: if a significant portion of the population is consistently taking in more money than you, even if you are making more money than someone in a different population, the cost of goods and services are likely to go up reducing your spending power. Again, I'm just not sure if the author of this article (and the associated book...maybe the book is better researched?) took any time to consider the ramifications of his pronouncements about irrationality.