For questions about the effects of psychology on the production, distribution, and consumption of goods and services in large populations. For questions about small groups or individuals, consider the tag consumer-psychology.

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Can we explain the tendency of investors dollar cost averaging in terms of loss aversion?

For those unfamiliar with the term Dollar cost averaging (DCA) is an investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By ...
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Are there any agent based cognitive models that are inspired by complex systems studies of ant colonies and economies?

I think that certain aspects of ant colony behavior seem almost like economic decision-making in behavior. There are also links between ant colony optimization and features of the brain like selective ...
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1answer
63 views

Are people more likely to pick the odd one out?

I was wondering if there has been any research to suggest that when given a list of options to choose from, people are more likely to pick an option if it looks different to the other options? My ...
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3answers
177 views

Why prefer “99% fat free” to “1% fat”?

In my experience I tend to find low-fat products labelled as "99% fat free" much more often than the equivalent "1% fat".* Why is this so? To me it seems counter-intuitive, because it reminds me of ...
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Bias towards purchasing tangible vs virtual goods

People may have very little hesitation in spending $3 on a coffee once a week, but when it comes to buying things online, such as virtual goods or services, they are often much more reluctant. Is ...
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109 views

What is the influence of “effort put into pursuing wealth” on happiness?

As presented in the TED talk by Mihaly Csikszentmihalyi (3:30) repeated research has been unable to show a correlation between happiness and level of material wealth (above a certain minimum ...
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1answer
62 views

What was the experiment where a person is given something and then has to share it with another person

Bob is given a bar of chocolate by the experimenter. Then he is to propose how he will share the chocolate with Emilly. If Emilly agrees with Bob's proposal, the kids will each get their share. If ...
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57 views

Stiffing the tip as groups get larger … like the prisoner's dilemma but …?

Is there a game theory analysis or other research or modeling describing the commonly perceived phenomenon whereby the amount by which people underpay a gratuity seems to be proportional to the number ...
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2answers
755 views

What are popular rationalist responses to Tversky & Shafir?

In the early 90s Tversky & Shafir observed several violations of rationality in human participants, in particular violation of the disjunction effect and sure-thing principle. This has lead to ...
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100 views

A study about preference for making relatively vs. absolute more money?

I remember reading about a study. I forgot the actual details of it, but the gist of it was: people were asked in what situation they would prefer to live, one where they make \$100,000 dollars and ...
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4answers
102 views

What is a good book for studying incentives?

I am looking for a book, which gives a broad overview of all the main theories regarding incentives. Using this book, I would like to further my understanding of things like: Why slot machines ...
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3answers
47 views

How can you limit excessive risk-taking at the institutional level?

Some firms have a compensation structure that encourages risk-taking while insulating employees from the bad consequences of their decisions. This creates the potential for moral hazard. I started ...
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809 views

Game-theory strategies to overcome holdout problem?

The hold-out problem often occurs in debt-restructuring or in urban development. The hold-out problem is defined where an agent, for example a land developer, must negotiate with many lot owners and ...