Tag: fear of loss
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Episode 14: The Big Reason People Are Only Open To Their Own “Group-Think” Ideas: Self-Regulatory Fit and Persuasion
I want to walk you through a rather complicated paper that I think is pretty important; it’s called “Bringing the Frame Into Focus: The Influence of Regulatory Fit on Processing Fluency and Persuasion”. It’s by Lee and Aaker from 2004. The focus of the paper was the importance of what they call “regulatory fit”. Now…
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Episode 10: How Sunk Costs Work
One of, if not the most, important motivator in behavioral economics is the fear of loss. We’ve talked about this extensively and it takes many different shapes. One of my personal favorites is what’s known as a “sunk cost”. Compared to a lot of behavioral economics terms this is pretty popular and well known, but…
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Episode 4: How trying to avoid regret changes our behavior
Let’s talk about regret aversion. Again, fancy phrase, simple idea. Let’s go on a mind-journey! Imagine this. You’re at home cleaning out an old shoe box of junk. I mean, you’ve had this stuff forever since you were a kid. But do you really need that candy bar from 17 years ago that you’ve been…
