Decisions in context
If you have a preference for holidaying in Paris or Rome, you probably think it is fixed. But Psychology Today blogs that the way the holiday choice is framed matters, citing a famous passage from behavioural economist Dan Ariely’s book Predictably Irrational. When asked to choose between a free trip to Rome, a free trip to Paris, or a free trip to Rome but with no coffee in the morning, more people chose Rome with coffee than in an earlier experiment that didn’t have the non-coffee option.
The framing appears to have influenced the decision.
Hidden costs of cash
Difficulties of the so-called “cash paradox” are detailed on Harvard Business Review. Tufts University’s Bhaskar Chakravorti blogs that people in the US without bank accounts (the “unbanked”) tend to be poor – and the paradox is that there are typically higher costs associated with not having a bank account. He says it should be a call to action for decision makers who care about social justice and inclusive policy.
“Cash-only” night out
It is easy to lose track of how much you are spending on a night out, a survey by the Money Advice Service finds. Of people in Britain surveyed, 56% spend more than they plan to on social occasions. Among tips given on how to avoid overspending is a “cash-only” night out – taking with you what you can afford and leaving your card at home.