Tuesday, June 7, 2011
In chapter ten we learned about something called losses loom larger than gains. This is when the loss of something is more dissatisfying than the gain of it. For example when losing 5 dollars is more dissatisfying than gaining 5 dollars. I just experienced this today first hand. My dad was selling a truck cap for $250.00 outside of our house. He sold it today to a man who asked him to lower the price, so he dropped the price by $10.00. I couldn't understand why he did that. I thought to myself why is he bothering to drop it by ten dollars the guy might as well pay the $250.00. Then I thought now he's getting even less money! I was experiencing losses loom larger than gains and didn't even know it. At first I was unimpressed by the amount of money being spent from the mans point of view, then I was upset about the amount of money being lost from my dad's point of view. I thought it was very interesting that there is something to actually explain these ways of thinking.