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"I'll scratch your back if you'll scratch mine" only works if I know you will respond with something approaching parity. The moral sense of fairness is hard-wired into our brains and is an emotion shared by most people and primates tested for it, includin
anthropology economics ethics evolution mind money psychology research science society
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Why people believe weird things about money template_bas template_bas
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Why people believe weird things about money template_bas template_bas
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14 Jan 08
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Gordon HaffI took a course in school called Behavioral Decision Theory that went into a lot of these non-rational economic behaviors. They have a lot of implications for marketing, advertising, etc.
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johnfromberkeleywe are every bit as irrational when it comes to money as we are in most other aspects of our lives.
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Regret falls under a psychological effect known as loss aversion. Research shows that before we risk an investment, we need to feel assured that the potential gain is twice what the possible loss might be because a loss feels twice as bad as a gain feels good. That's weird and irrational, but it's the way it is.
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Pranger PrangersonEvolution accounts for a lot of our strange ideas about finances.
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