The principle of cancellation states that losses will be integrated with larger gains where plausible. The best example of this is withholding from paychecks. In the present frameworkthe least aversive type of loss is the reduction of a large gain. This concept seems to have been widely applied by governments. Income taxes would be perceived as much more aversive
(in addition to being harder to collect) if the whole tax bill were due in April. The implication for sellers is that every effort should be made to set up a payroll withdrawal payment option. Probably the best way to market dental insurance, for example, would be to sell it as an option to group health insurance through employers. If the employee already pays for some share of the health insurance then the extra premium would be framed as an increase in an existing deduction; this is the ultimate arrangement for a
seller.