The Endowment Effect is a rapid test that can show you how much you value your ego. Really. A famous, well-replicated social experiment has shown this. If you receive a mug for free and someone asks you how much are you willing to sell it for, you are most likely to price the mug at […]
Monopoly® is, undoubtedly, one of the most iconic modern board games of all time. The game involves 2-8 players with 16 Community Chest Cards, a pack of Monopoly money, 32 Green Houses, 12 Red Hotels, 8 Tokens, 28 Property cards, 16 Chances, 1 Speed Die, and 2 Dice. Basically, you win the game by collecting
Six Surprising Behavioral Lessons from the Game of MonopolyRead More »
The human behavior that prefers one to avoid loss rather than make a gain is a phenomenon called Loss Aversion, Loss Aversion is easy enough to prove in real life. With a little experimentation, you can prove it by yourself. Pick up a deck of playing cards and a couple of coins (or, more preferably,
The daily scenery of the lottery line is a simple manifestation of our tendency to avoid a loss: a ticket that could land you an exponentially inflated reward, without paying too much to get into the contest. The thing is, we live to possess, and if we lose the things we own, the sting of
During the first quarter of 2019, I’ve decided to completely shift my attention to Behavioral Finance. The only problem: I was flat out tired. Because I’ve been doing this for almost a decade, I feel burned out, often stressed and pressured on the rigorous routine of marketing and prospecting for new clients. I am legitimately
The consumer market works to condition your brain to think that by buying stuff, you would be solving your emotional and personal problems. But we all know that this doesn’t provide real solutions—it just adds whiskey. By buying stuff, we just want to feel good temporarily. There’s nothing wrong with this, of course. We all
Taken together, money and spending are pretty influential subjective concepts. Ever noticed that when you’re shopping, your emotions get the better of you? Your shopping could very well beat the hell out of your logical reasoning cold. This happens when you can’t stop the urge of using little plastic cards to purchase some things that
In finance and investments, emotion is a dangerous creature. It’s cute, furry, cuddly, but feed it after midnight, it turns into a Gremlin. With emotion, we’ve tagged the one thing that salespeople use to lure you in. The same thing goes with advertisements. Ads pepper you with lots of images and sound designed to trigger
Finance 101: Needs, Wants, Sizzles, Steaks, and GremlinsRead More »
