Shooting Yourself in the Foot with Focus and Loss Aversion

My wife and I were (re)visiting The Netherlands for a few days and we rented an apartment via booking.com. When we arrived, the owners asked us to pay the city tax in cash since they didn’t want to pay a processing fee to the credit card company. You can imagine how that felt like, particularly after 24+ hours without sleep and a trans-Atlantic flight. Just to be clear, the city tax is about 15 Euros. I’m not sure how much they would have had to pay for the payment, but even a fee as high as 5% would have resulted in a cost of less than 1 Euro. Unfortunately, this is not the only situation I encountered in which (small business) people shoot themselves in the foot because they focus on avoid

The Nudge is Not Enough! The Love Story Between Behavioral Science and Practical Applications

A couple of weeks ago I published this post on BehavioralEconomics.com Thank you Alain Samson for the invitation. A romantic relationship goes through various stages from early dating to marriage and, in about half of all cases, divorce. It begins with flirting and continues with that essential first date. If that goes well, it is followed by more dates. If things go OK and the chemistry is good, the relationship will go to the next level: one partner offering the other a shelf in their closet. Sooner than many realize, this leads to the natural question of Why pay two rents? followed by a de-facto living together. After a while, one of the partners pops the BIG question: Will you marry me?

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Nick
  • Twitter Basic Square
  • LinkedIn Social Icon
  • Facebook Basic Square