Ranging from current sluggers to past players, the market for baseball cards has created prices that are below $2 and more than $3 million.
From the nineteenth century to the twenty-first, our expectations for fast letter and package delivery have changed considerably.
When coffee drinkers hear that some prices at Starbucks will rise, their response will depend how how elastic their demand is.
In the 2008 European Championship quarter finals, the Italian team let Spain go first for the end-of-game shoot-out. That was a big mistake. Where are we going? To the influence of a reference point. Penalty Shoot-Outs When a soccer game has no winner, a penalty…
Illustrated by the Expedia Vacation Deprivation survey, how much vacation time we take can depend on where we live and our reference points.
The behavioral economics ideas from our everyday economics are confirmation, expectations and projection bias, frames, temporal discounting and sunk costs.
Through a behavioral economics lens, our reaction to a price relates to a frame or reference point that creates an association with a gain or a loss.
In a study of the Barcelona Olympics, researchers concluded that winners of the bronze medal tended to be happier than the athletes who got the silver. Please look at the expressions (below) of the Olympic medal winners for the 200-meter individual medley at Beijing…