A group of researchers offered participants of a study a choice between purchasing a Hershey ’s Kiss chocolate for 1-cent ($0.01) or Lindt Lindor chocolate truffle for 15 cents ($0.15). The participants, recognizing this as a good deal since the price differential in a supermarket would be larger than 14 cents between the two options, overwhelmingly … Continue reading The Power of Free
Researchers in the Netherlands wanted to find out whether people with a low savings amount would start saving more if they knew they saved less than others in their neighborhood. Providing such info is referred to as a social norm nudge. Such nudges signal appropriate behavior and are classed as behavioral expectations or rules within … Continue reading If You Knew You Had Less in Savings Than Your Neighbors, Would You Start Saving More?
We all (well, maybe not all) remember those dreaded gym classes when it was time for teams to be picked. If you weren't an athlete (nope), popular (nope), or good-looking (nope), you were going to be among the last ones selected. And you were just hoping you would not be THE last one selected. While … Continue reading The Paradox of Last Place
It's a question that at first glance, at least to me, has a simple answer. Cash, of course. Cash enables you to do anything you can do with the gift card, plus a whole lot more. A gift card, on the other hand, restricts your choices to just the gift associated with the card. By … Continue reading Gift Card vs. Cash – Which Would You Prefer?
Some of my long-time readers (i.e., my wife and three sons) might know what today is - it's every other Saturday, which means it highly likely that today's blog has something to do with behavioral economist Dan Ariely. For people new to my blog, it's every other Saturday, which means it highly likely that today's … Continue reading Hey Kids! If Your Parents Start Stealing Your Veggies, Don’t Fall for That Old Trick!
People are more likely to return a lost wallet with money inside than an empty wallet. That should seem like a given to me, but apparently, it came as a surprise to a group of international researchers who set out to test the tension between financial self-interest and the honesty of people around the world. The … Continue reading People Are More Honest Than We Think, and I Find That Sad
Regular readers of my blog likely know the "Dan" I am referring to. It's Dan Ariely, a leading behavioral economist, and best-selling author. Dan has a biweekly advice column in the Wall Street Journal that has often provided me with ideas for my blog, and today's column is no exception. Here is the email in question: … Continue reading Not So Fast, Dan