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Here is a thought experiment. You buy a pair of shoes, perhaps because they were on sale and, while still expensive, you could not pass up all that transaction utility. You proudly wear them to work one day and by noon your feet hurt. After letting your feet heal, you try the shoes again, just for an evening this time, but they still hurt. Two questions: Assuming that the shoes never get comfortable, how many more times will you try to wear these shoes before you give up? And, after you have stopped wearing them, how long will they sit in the back of your closet before you toss them or donate ...more
Misbehaving: The Making of Behavioral Economics
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