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.
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Yeah this happens alot. When items go on sale at stores, most of the time there on sale for a large amount. But then when you go to stores and the item costs $150 and its on sale for $142. Makes you think what the f*** is happening, but to some people that -$8 will make them buy it.ReplyDelete
Rachel this happens to me all the time. When I go shopping or do my hair, I'm excited for a moment but then I get upset because I spent so much money (even if I spent it on something I really needed). I feel like this occurs much more often now to everyone who spends money than before because the economy is so bad.ReplyDelete
It's definitely a fact that nobody likes to lose money but unfortunately it's a part of life. If you think about it look at all the people that go to the casino with such high hopes of leaving their with more money than they came with. I'm not much of a gambler because I work too hard for my money and I'm definitely not going to suffer a loss if I don't need to.ReplyDelete
I understand that you were upset about your dad losing 10 extra dollars on the sale of the truck But sometimes look at the bright side of things and instead of looking at it as though he lost $10, try looking at the fact that he has an extra $240 in his pocket.