If we only have money in the equation then it is not as valuable because then it is all about opportunity cost. The representation of e.g. a cup of cappuccino is higher than $3. Thus, we can take that money and make it specific, concrete - make it less valuable from an economic perspective but yet give it a higher perceived value. By doing this, you can change how people make decisions. ($1000 panasonic vs $700sony, $1000 sony incl cds for $300)
3 Main Lessons from behavioral economics: we have many decision biases our intuitions are often wrong, and we don't recognize our faults we need to rely on empirical evidence from experiments to accurately analyze our behavior
I am on a tight schedule (study group) https://docs.google.com/document/d/1UPxmjJXPWRAntxPvAoN9qTz3xUv1ujgVTHyDMCsXq3A/edit?usp=sharing https://docs.google.com/document/d/1UPxmjJXPWRAntxPvAoN9qTz3xUv1ujgVTHyDMCsXq3A https://docs.google.com/document/d/1_SL33-yrklJppLeDczVg8x3rV-k_BDiSt5i3nrtKPxY
System1 (intuition based on patterns, associations and previous experience) & system2 (reasoning system that searches for information in our memory). System 1 can is reinforced and upgraded when you experience new things. (Marketing is aimed at system1) NB! The "mechanism of substitution" is one of the mechanisms that leads to intuitive errors http://www.youtube.com/watch?v=CjVQJdIrDJ0=share
The relationship between preferences and actions. (a) the view from neo-classical economics, in which a calculation of hedonic utility underlies behavior. In this view, preferences cause actions and actions reveal preferences. (b) captures the authors’ account, where behavior is driven by hedonic utility AND by situational factors, causing individuals to erroneously infer stable preferences from their actions.Later behavior is also driven in part by biased memories for these inferred…
Breaking into a Competitive Field: Why Tenacity Wins Out Over Nepotism and Talent - Video
"Under what circumstances would you lie, or cheat, and what effect does your deception have on society at large? Dan Ariely, one of the world's leading voices on human motivation and behaviour is the latest big thinker to get the RSA Animate treatment.