Our mind works according to its own laws, which can hardly be called logical and rational from an economic point of view. Therefore, today we will talk about the traps into which our own mind drives us. Try to avoid them as much as possible.
We are much more afraid of losing something than we are happy to acquire a new one.
Try to imagine what news will make a greater impression on you — that you have received a salary increase or that you will not be given the expected bonus this year? Experiments confirm that we experience loss more strongly.
Remember the website of any course, where the message "Only 10 places left" appears every now and then. We are afraid of missing an opportunity and make an impulsive purchase.
This effect is partly related to the previous one: we are psychologically comfortable when things remain unchanged. The thing is that any changes, even positive ones, are stressful.
We would rather stay with our tit in our hands than try to change something.
Answer a simple question: how often do you change your mobile operator? Over time, the tariffs of the old operator grow, and more and more favorable offers for new customers appear on the market. But we persistently continue to tolerate the unprofitable, but familiar old.
This can be explained by the unwillingness to understand the intricacies of the connection. But numerous psychological experiments W. Samuelson, R. Zeckhauser. Status Quo Bias in Decision Making / Journal of Risk and Uncertainty. proved that the real reason for this behavior is the fear of being in a stressful situation, even if a reward awaits you in the end.
Remember when you last read the horoscope. Even if you don't believe in all these predictions, didn't it seem to you for a second that they partially describe your life? If so, then you've fallen into Barnum's trap.
The bottom line is that most people tend to attribute general and vague descriptions as a characteristic of their personality and life.
As you probably already guessed, this effect is fully used by astrologers, fortune tellers and other "predictors". The problem is that all the formulations from horoscopes are applicable to almost all people without exception: "you are a responsible person, but sometimes you can make mistakes", "you like to have fun", "good news is waiting for you". The more positive the descriptions, the more coincidences we find.
We tend to perceive the nominal rather than the real value of money. In other words, we are attracted to large numbers, although the purchasing power of money is much more important (how many goods you can buy for a certain amount).
When the boss informs you about the salary increase, you are happy that you have started earning more. Only you hardly think about inflation, which "eats up" your entire increase. With a new salary, you can buy fewer goods than with the old one last year. Your financial condition has not changed in any way.
But the fact of a salary increase is very important for a person, because nominally he has become richer.
This is our tendency to estimate numbers in the direction of the initial approximation. We estimate the value of any item based on the price named by the seller, and do not try to think for ourselves whether it is fair or not.
This effect is especially pronounced in stressful situations.
You decide to rent an apartment, the landlord calls his price. You start trading based on this figure, although it is quite possible that objectively it is overestimated by half. But our thinking fails us, and we psychologically cling to this anchor.
We tend to overestimate our property. At the same time, it is not so important whether you actually own the thing. The main thing is to feel it as your own.
You've probably encountered this effect in your life if you've been to the market at least once. There, sellers by hook or by crook convince you to hold the thing in your hands, try it on.
Once you subconsciously feel a thing of your own, you are already ready to buy.
However, there is an exception to this rule — experienced collectors. They are interested in getting the maximum benefit, are ready for an exchange and are more rational in choosing their purchases.
The effect of drowned costs is manifested both in business and in everyday life. The example of General Motors is indicative: the management believed that Americans would actively buy copies of Japanese cars. And despite the fact that sales clearly indicated the opposite, they continued to produce a loss-making product for years. The situation has changed only with the change of the management team.
Or an example of the same trap in a typical household situation: a wife does not leave her unloved husband , because "we have already lived together for so many years." As a result, an unhappy marriage and unwillingness to admit the obvious.
A striking example is the presentation of the new iPhone, which the company's fans are looking forward to every time. However, there is a downside to this effect: with each repetition, its strength weakens. The hype around the new models is getting weaker. If earlier people took a queue in front of the door to the store for a few days, then gradually this event is perceived more and more calmly.
