One of the most general principles of human decision making is that we use relativity as a way to figure out how much we value things. We see a sale sign and the comparison of the current price to a more expensive past price makes us think that we are standing in front of a good deal. We see a modestly prices sweater next to a much more expensive one and we reason that is it a better deal for the money. And so on.
Relativity is not always the right strategy for figuring out how much to value ...
Published on September 04, 2010 23:00