Tiny Wisdom: Letting Other People Dictate Your Choices
“Don’t think you’re on the right road just because it’s a well-beaten path.” -Unknown
The other day, I watched a fascinating documentary about behavioral economics—a field that considers how mental, emotional, and social factors influence money-related decisions. Traditional economic theory emphasizes rational thought as the basis for financial decision making.
In the beginning, researchers hosted an auction for a $20 bill, starting the bidding at $1. The twist was that after the highest bidder won the $20, the second highest bidder would need to pay his or her losing bid.
If the participants were thinking logically, they may not have …