"Predictably Irrational Behavior"
This is a title made by Dan Ariely Who is a behavioral economist. He found out that we consumer don;t behavior as teh economist think we do. He explain that irrelevant factor, such as emotion, can affect the way we make decision, and not just the maximum utility we gwt from goods or services. It is true that we often pay to get the maximum utility, but with influence of irrelevant factor it change our way of thought, but at the same time, didn't cahnge our economic mind.
As an example please take a few second to answer teh follwoing questions .
1. Which one would you prefer?
A cup of coffee $2
A jelly donut $5
A jelly donut and coffee $5
2. Which one would you prefer?
A cup of coffee $2
A jelly donut and coffee $5
Did your decision change?
As in that little experment, the change in wording can make one decision look like a more better decision. With a little change a company can make more profit.
sorce: http://www.npr.org/templayes /story/story.php?storyId=19231906
On both occasions I choose a jelly donut and a cup of coffee. Jelly donuts are delicious and coffee makes the world go round. Curse the evil people who charged five dollars for one donut, though.
ReplyDeleteAnyway, I don't really get the point you're making. Should my decision change to coffee because it's cheaper? Because I already knew a jelly donut is five dollars, so a change of wording doesn't really do anything. Or is I still choose a jelly donut and a coffee because I already knew how much both were individually? Maybe it's because I suck at econ that I'm not getting the point.
Also, you post a link that doesn't work. I think this is the working one:
http://www.npr.org/templates/story/story.php?storyId=19231906