Irrational Behavior - Week 4 to 6

Week 4

• Ikea effect:  Is when you do something and then overvalue your work
• Zappos a shoes company pay to the recruited people for not taking the job, so the people that is hire always remembered  that the work is worth it (because they accepted it the money) , auto-justifying his idea that they have a good job
• At certain high level the money does not represent an incentive

Week 5

• We think in the immediate present not a in the long term
• Resistant to the temptation can be seen as a muscle
• The muscle gets tired after time
• The muscle build resistant with exercises
• Do not use a muscle to much before a competition
• You can build resistant to temptation, putting a reward after doing some work
• Ulysses contract, is when you avoid been expose to the temptation or you are expose to the temptation but you can access to it

Week 6

• Emotions are transient and more short-lived than we expect
• Emotions really change are way of behavior
• Identifiable Victim Effect: A single, specific victim inspire actions, whereas statistics about masses of victims does not.
• Our perception of risk is higher when:
• the event is salient in memory
• we have an emotional response