Blog entries tagged Behavioral Economics

Meaning in Work

Rajan Sambandam — Mon, 29 Jun 2009 13:02:19 +0100

There are some occupations (such as doctors, teachers, firemen, social workers etc) where people find meaning or a purpose in their work. And then there are other occupations (you know who you are) where there isn’t quite as much meaning. At least that is the general understanding. Of course, it is possible to find meaning in the most pedestrian of occupations as long as one is able to link it with larger goals such as providing for one&rRead More...

Instant or Delayed Gratification?

Rajan Sambandam — Thu, 28 May 2009 00:00:00 +0100

Let's say you had the choice of giving one of two gift cards. One of them expires soon while the other expires much later. Which would be better to give? The latter, right? Not quite, say some behavioral economists. It appears that the one that expires sooner and therefore avoids procrastination makes people happier. That's right: people procrastinate even when it comes to pleasure. It could be that even with pleasures like using gift cards there are some costs associated (such as arranging fRead More...

Price is Right? Placebo Effects in Marketing

Rajan Sambandam — Thu, 18 Dec 2008 01:00:00 +0100

It is no secret that consumers often perceive a price-quality relationship, attributing higher quality to products for which they pay more. A large body of pricing research supports the existence of this phenomenon and it is not hard to find personal examples. But what happens when price is compared to objective quality as measured by say, Consumer Reports? Strangely, the relationship between price and quality almost completely disappears. Why? New research points to a placebo action in markeRead More...

Tom Sawyer and the Two Market Theory

Rajan Sambandam — Mon, 23 Jun 2008 00:00:00 +0100

In Mark Twain's classic novel Tom Sawyer is white washing a fence because his aunt told him to do it. In other words, it's work. But Tom soon convinces his friends that whitewashing the fence is a privilege and even gets them to pay him for a chance to try their hand at it. Twain makes the larger point that whether something is work or not is based on whether one gets paid for it. In this case work becomes a privilege when the worker has to pay to take part, as opposed to being paid for it. BRead More...