Irrational Behavior - Week 1 to 3

Concepts Learned

• Progression of pain over time matters: is better more pain at the beginning and then reduce the amount of pain
• As the amount of pain increase the sensation of length time increase
• Decision illusion are tricks that our mind plays on our judgement
• Choice architecture: People explain their decisions in terms of anchoring
• A forced choice procedure distinguished between actual preferences and the tendency to the status quo.
• People are happy with the less effort.
• Is easier to choose the default option Vs when we have to choose among more options
• Decoy effect: Is add a third option slightly less attractive to one of the other option.
• Changes in momentary mindset can have a significant 
• Self-herding: Once you take a decision you repeated one over and over

Week 2

• The pain of pay is bigger that the joy
• The feeling of pain is twice than the joy
• The people lose the dimension as the amount increases.
• People compare with the last previous status.
• People think they would prefer making more money (in absolute terms) while being the lowest-paid employee at one company to making less money while being the highest-paid employee in a different company.
• The pain of pay is less as we don't see the money in cash
• Is easily to compare using the same category not in terms of money Vs an item
• The financial motivation sometimes is against the social motivation 
• Complete contracts enforce the letter of the law rather than the spirit of the law.
• We prefer FREE overall 
• In a purchase the people think only in the purchase opportunity, the cost is not relevant
• The money is conceived in terms of opportunity cost in period of time. 
• As more time a person spend fixing the problem the client is more willing to pay more
• Endowment effect is to value more our talent or properties over others
• As relative saving are smaller the people are more willing to do it.
• More money dehumanize the person

Week 3

• what-the-hell rationalize why when we cheat is not so bad
• Creative people tend to lie more
• Remember the values before a test avoid the people cheat
• Gary Becker’s proposal evaluates an option based on costs, benefit and risks.