Wednesday, April 13, 2011


I also found that this picture was a good example of behavioral economics. It shows how, even though the hat is way too big for the man purchasing it, he gets the large anyway because the savings is higher, making him feel like the purchase was more worth it even though every other hat is the same exact price. The bigger the sale, the more likely someone will buy it, even if it isn't exactly what they are looking for. They feel like they are saving so much money even though they would be spending the same amount of money in the end.

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