Sunday, January 9, 2011
Sore Losers, Don't Bid
Research finds that people overbid at auctions to avoid defeat more than to experience victory.
Half the subjects started the auction with a $15 bonus, which they would keep if they won. The other half were told that after the auction, if they won, they’d get an extra $15. Either way, the winners would get the same bonus.
But people bid more when they were afraid they might lose the money they already had.
Labels:
auction,
Happiness,
neuroeconomics,
pain,
pleasure seeking,
psychology,
social behavior
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