then out of boredom I decided to translate Arieli Days ” Predictably irrational”
All in all, I liked the clipping..
First, the truth about the economy and experiments on people)) But in the end, they screwed everything to the exchange..
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If you take 2 identical objects and make you choose between them, then it will be difficult to make a choice. For example object A and object B. For example, these are Energizer batteries and Panasonic batteries.. Both brands are good and the prices are the same, the same charge and running time, the design is equally good. Hard choice?
Let's enter there 3 элемент. Dead batteries "Energizer", Energizer batteries and Panasonic batteries. Which batteries will you choose to buy?
Probably, it will be "Energizer". Вы выбираете, comparing things to each other. Вы не знаете, what columns do you want, until you compare all the available speakers by sound. When did you compare, вы точно знаете, чего хотите. Everything is relative. Remember?
If I ask you to remember 3 the first digits of your passport (мои 360), and then I will ask, do you agree to pay for a bottle of wine in the amount of these 3 digits, whether just a hint of this number will affect your desire to spend no more than this amount on wine?
This is called a random sequence or tyranny.. The main idea is this: несмотря на то что, initial prices are "arbitrary, случайны, despotic », when these prices are set in our minds they will form not only existing prices, but also prices, who will be in the future (this makes them "consistent, linked "). So will there be thoughts about 3 passport numbers are sufficient, to form an anchor? And will this anchor have a lasting impact?
This is idiocy you tell. The student experiment confirms this.. The price can be taken from anywhere. Students were told the same about their passports.. Then they gave a plate with products and asked to set the highest prices, who are they willing to pay for the product. Then they called those, who gave the highest bid, and gave them food, for which they paid. They were asked about the impact of passport numbers on their prices., они сказали, that the numbers did not affect.
А оказалось, that students, who had the highest numbers, gave the highest prices, and those with lower numbers, gave prices lower. Moreover, students, who had the highest numbers, paid on 200-500% more, than those, who has low numbers.
Also noted one more thing. From 2 identical products, everyone paid more for the same, чем за другой. The meaning of this is, as soon as the subjects were willing to buy one product, their evaluation of the other product was relative to the price of the first.In life we are bombarded with prices. But prices by themselves are not anchors yet.. They become so, when we contemplate buying a product or service at that specific price. This is when the sealing is established.
Обнаружено, what people, who come from cheap markets to medium-sized markets do not increase their costs. Also these people spend less, than in the previous market, even if it means worse conditions. And people, coming from expensive markets, spend as much as in the past market. So we are constantly attached to the price anchor.
But, may be, we can move from one price anchor to another? Turns out, what we can't. But you can create new anchors. For instance, if the government raises fuel prices, then you will buy less or get a hybrid car. But if it is a new type of fuel, then everything will be ok.Supply and demand market leaders. We lower the price - the offer falls, demand is growing. We raise the price - the supply grows, demand falls. Supply and demand are presented as interconnected and equal forces.
But is it really so?Traditional economics presupposes, that the prices of a product in the market are determined by the balance between the two forces: products at every price (proposal) and the desire of those, who can buy at every price (demand). Price, where these two forces converge, defined as market price. This is an elegant idea., but it is built on the assumption, that the two forces are independent and together they produce the market price. But according to the results of our experiments, this is not the case.. With regards to the desire to buy - one of the components, determining the market price, we know, that this desire can be easily manipulated. Our experiments have shown, something, what price consumers are willing to pay, can be controlled, and that means, that consumers do not have a good understanding of their preferences and prices, who are they willing to pay for goods.
Second, classical economics believes, that supply and demand are independent, but the types of anchor manipulation, which we showed, they say, that they are addicted. In the reality, anchors come from the manufacturer's estimated retail prices, Advertising, wholesale prices, etc.. - these are all variations of the sentence.
So that, seems, what instead of the consumer's desire to buy, affecting market prices, vice versa, the causal relationship is feedback and is, that market prices themselves determine consumers' willingness to pay. And that means, that demand is not separate from supply, at least, wholly.And this is just the beginning. Within the "random sequence" relationship, what we see in the market between supply and demand are not based on preferences, but in memory. Here is an illustration. Yogurt prices have dropped 50%, and they grew up for bread 100%. How do you think, what's going to happen? Yogurt will be sold out, and they will stop buying bread. Yes. Но только, if people remember, how much did yogurt and bread cost before. And if you don't remember, how much bread cost yesterday? How much yogurt cost yesterday? And prices have changed the same way. Think, that a strong change in demand from a change in price will not occur. All in all, our reaction to price changes, probably, more result of our memory of prices, what we paid for in the past and our desire to relate to our past decisions is not, after all, a reflection of our preferences or the magnitude of demand.
By the way.. also on the topic:
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well… And .. bonus) Thanks
original photo – © REUTERS/Brendan McDermid
Terry Crews and Sylvester Stallone while visiting the New York Stock Exchange :)
I suggest toad)) For example my options – And ) Although it is not “жабы” I guess