Posts Tagged ‘loss aversion’

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    Bogeys, Birdies and the Eurozone

    Jun 1, 12 • 108 Views • Behavioral Economics, Economic Thinkers, Financial Markets, Government, International Trade and Finance, Macroeconomic Measurement, Money and Monetary Policy, Thinking Economically, UncategorizedNo Comments

    Analyzing more than 1.6 million putts, including Tiger Woods, 2 University of Pennsylvania economists concluded that professional golfers putt better when avoiding a bogey (a stroke over par) than when trying for a birdie (a stroke under par). The reason? Our...

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    How Not To Price a House

    Aug 31, 10 • 113 Views • Behavioral Economics, Demand, Supply, and Markets, Households1 Comment

    Let’s assume you would like to sell your house. According to Wired journalist Jonah Lehrer, the price you select might not be optimal. Why? Because we like to avoid losing money. (Of course, you might say, that is obvious. But an economist would suggest...