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.

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