Illustrated by the Expedia Vacation Deprivation survey, how much vacation time we take can depend on where we live and our reference points.
Economics can explain why Olympic bronze medal winners seem happy while the athletes who won a silver medal might not look as pleased.
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…