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Brain understands value in terms of relativity
- we tend to compare things with one another
- we also only focus on comparing things that can be compared while unconsciously avoiding those that are hard to compare
- need to use a decoy to ease the comparison process
- think in terms of absolute numbers not percentages
Arbitrage coherence
- the initial price maybe largely arbitrary
- once the price is established the amount we are willing to pay is relative to the initial price
Market norms versus social norms
- social norms takes longer to build
- it is easier for market norms to displace social norms
- once displaced it is hard to re-establish social norms
- the notion of money/price displaces social norms
- don’t mix the two norms
- exchanges involving physical effort helps maintains social norms
Arousal
- Its easier to fight temptation before it arises than suppressing it when it has occurred
- people are wrong about their predicted behavior when aroused by a large margin
Procrastination
- procrastination is the giving up of our long-term goals or immediate gratification
- have person commit up front to a preferred path of action
- bundling services helps reduce need to think
Schedules of reinforcement
- variable schedules are not effective and reinforcing behavior
- America’s top killer is our inability to make smart choices – 50% of folks will make lifestyle decision that kill us earlier
Ownership bias
- if you own something you are more likely to value it more highly than if you had no prior emotional attachment
- you tend to be more optimistic of the things you are doing
- always be aware of base survival rate within a sample population
- we tend to keep options we don’t need open even when it costs us more in the long run
- too costly a strategy when there are too many available options in the environment
- consciously close doors
Expectation
- changes our actual experience of the item
- adding a semi exotic ingredient while not necessarily changing the nature of the dish helps us enjoy it more
- stereotypes – helps reduce caloric need for brain to understand the full picture
- approaching a situation with no expectation helps seeing the true reality of things
Trust
- Proactively address complains
Character is contextual
- how we behave is largely a function of the signals we are getting from the environment
- profession take a oath at the start of their career
- cheating is easier one step removed from cash
- individualistic culture versus socialistic culture
External References
