Some top executives are now paid very large one-off bonuses for meeting their performance targets. It’s like tempting the mouse with a piece of cheese. But, do humans really behave like mice?
Some top executives are now paid very large one-off bonuses for meeting their performance targets. The theory is that setting and rewarding the attainment of targets increases performance. It’s like tempting the mouse with a piece of cheese. But, do humans really behave like mice?
Continue reading “Do Big Money Bonuses Really Increase Job Performance?”
Anyone who’s ever tried to sell a house, a car, or practically anything, quickly discovers that buyers and sellers rarely see eye-to-eye on price.
Anyone who’s ever tried to sell a house, a car, or practically anything, quickly discovers that buyers and sellers rarely see eye-to-eye on price. A quick skim through the classifieds in the back of the local paper will reveal endless examples of people overpricing what seem like pretty ordinary items. But that’s not how the seller sees it.
Continue reading “6 Quirks of Ownership: How Possessions Bend Our Perceptions”
A lucid and accessible description of the biases that affect our decision making.
A lucid and accessible description of the biases that affect our decision making.
Classical economics is the story of how humans are rational beings who calmly weigh up the pros and cons of each economic situation before making a logical decision. Many aspects of the way our society works are built on this story of how humans think and behave. Unfortunately classical economics, although interesting, turns out to have some serious problems.
Continue reading “Predictably Irrational by Dan Ariely (Book review)”
We like ‘free’ because it makes us feel good and there’s no downside. But sometimes ‘free’ tricks us into poor decisions.
We like ‘free’ because it makes us feel good and there’s no downside. But sometimes ‘free’ tricks us into poor decisions.
There is one magical price that we don’t evaluate in the same way as other prices. Unlike the others, this number is guaranteed to make us go mad with desire. It makes us do strange things, it messes with our minds. That price is….FREE!
Series of posts looking at some of the latest research findings on the psychology of money.
Money seems to have an almost magical effect on us.
Until recently social scientists didn’t know much about the psychology of money. That has changed with an explosion of fascinating findings on how it affects our emotions, our personalities, our sexual behaviour, our risk-taking and society at large.
This series of posts looks at what some of the latest findings can tell us about how the psychology of money affects our day-to-day lives. These insights might allow us to better enjoy our money, spend it more wisely and understand how it affects our behaviour.
People inhabit two separate worlds – the social and the financial – and depending on which one is activated, their thoughts and behaviour can change dramatically.
Studies show that people inhabit two separate worlds – the social and the financial – and depending on which one is activated, their thoughts and behaviour can change dramatically.
I received a rude awakening about the separation between financial and social worlds a few years ago when I moved flat. A friend agreed to help me move all my stuff across town in the back of a van I’d hired. It took much longer than I’d expected – we were still unloading at midnight – and we were both exhausted by the end.
Continue reading “Social Versus Financial Thinking – When Money Makes People Lazy and Selfish”
Research shows that when making spending decisions we try to avoid difficult comparisons – but it’s the easy comparisons that can get us into trouble.
Research shows that when making spending decisions we try to avoid difficult comparisons – but it’s the easy comparisons that can get us into trouble.
Rationally everyone knows that, roughly speaking, money has an absolute value. $10 is $10 is $10. Yes, the prices of goods vary, but generally speaking we know $10 will buy us a book just as easily as a CD.
Continue reading “Avoid The Relativity Trap – How Thinking Globally Can Save You Money”
In recent years psychologists have uncovered all kinds of fascinating and strange new things about the psychology of money.
In recent years psychologists have uncovered all kinds of fascinating and strange new things about the psychology of money. It is a huge and ever-growing topic with new research coming out all the time, so let’s take a quick look around and spot some of the major themes and headline findings.
Continue reading “Whistlestop Tour of Research on the Psychology of Money”
This week PsyBlog is dedicated to the psychology of money.
This week PsyBlog is dedicated to the psychology of money.
Over the next week or so I hope you’ll join me on a journey into the psychology of money. Send me your questions as we explore our sometimes strange, sometimes passionate, always complex relationship with filthy lucre:
And many more questions I haven’t thought of yet! I’ll be looking at psychological studies, theories about money and running some polls to reveal our attitudes.
Continue reading “Psychology of Money: What Do We Want To Know?”
Two widely publicised studies have contributed to the myth that the progress of cancer can be effectively battled with the power of the mind.
Mind-myth 9: Two widely publicised studies have contributed to the myth that the biological progress of cancer can be effectively battled with the power of the mind. Unfortunately these studies – one at Stanford and one at UCLA – have been heavily criticised and subsequent research has failed to back them up.
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