Today, I don;t write on investments, I prefer to play a quiz with you instead.
Today let's be honest to yourself and answer my questions. You will see how irrational you are.
The question is : Suppose I offer you a choice between a free 10 Amazon gift certificate and a 20 gift certificate for 7 dollars. Think quickly, and answer yourself, Which would you take?
THINK THINK THINK .....
If you jump for the 10 dollars certificate for FREE!, you would have been like most of the people some scholars tested at one of the malls in Boston.
The irrational point is that the 20 dollars gift certificate for 7 dollars assures a 13 dollars profit while the FREE option delivers 10 dollars. It's clear that go for the 20 dollars certificate is better than the 10 dollar FREE option which only delivers 10 dollars profit.
Can you see the irrational behaviours we have chosen? Or, are you a rational or irrational people? I am irrational haha!
The attractiveness showed that the FREE! option is clearly in its own class of choice. It triggers own irrational mind in this experiment.
I will share again on this topic in the coming few days, that's interesting!
Interesting reading. Enjoy behavioural economics. Make the subject simple, more people will enjoy it.
Do you prefer the 10 dollars profit or the 13 dollars offer?
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