Buying a house? Beware of sellers who bought at the top of the market. They’re more likely to hold out for a higher price than someone who bought a comparable house when house prices were lower, researchers have found. This “history dependence” effect exists even when sellers are mortgage-free.
Why do people join lottery syndicates? 86 percent of those polled said they did so because they’d be miserable if their colleagues won and they were left out. This regret avoidance/aversion is also key to many other of the decisions we make, the authors of this Business Insider article explain.
Debt is debt, right? Not necessarily. Research described by CBC News has found that our subconscious will often label such borrowing as something else, depending on our feelings towards it. And those who strongly oppose debt when they don’t have any tend to change their attitudes once they have it, to reduce cognitive dissonance.