
Queuing is so frustrating partly because waiting is boring, research cited by The New York Times explains. Mirrors next to elevators are distracting so make us happier. But beware, offers at the check-out in stores do a similar thing, and reportedly earn supermarkets $5.5 billion a year.

The latest Wall Street Journal column by behavioural economist and academic Dan Ariely looks at how sensitive we are to spending money – and how it varies depending on the price of the item. He writes prices are relative, hence the reason we tend to pay more attention to 10 cents being added to a EUR3 coffee than to a EUR30,000 car. Known as “money illusion”, people often think in percentages rather than the face value of money. Think: What else can those 10 cents buy me?

How do you respond to fees? Bri Williams, founder of consultancy group People Patterns, blogs that Reserve Bank of Australia (RBA) research shows people reacted to a $2 transaction fee at ATMs much more strongly than expected – branding the response irrational. Contrary to RBA expectations, many customers didn’t continue with their transaction if a “point-of-sale prompt” reminded them they would be charged. Williams writes: “People hate service fees so much because they decouple the value of the good from the service in getting it to them.”
And she warns the RBA experience shows irrationality “should not be underestimated”.



