WHEN 6 IS WORTH LESS THAN 4 – AND TRAVELLING SOUTH TAKES LESS TIME THAN TRAVELLING NORTH. Nobel Prize winner, Daniel Kahnemann, a behaviour economics guru, carried out a range of experiments highlighting the irrational behaviour of human beings: Two roughly equivalent samples of respondents were shown one of two tea sets on a tray: […]

WHEN 6 IS WORTH LESS THAN 4 – AND TRAVELLING SOUTH TAKES LESS TIME THAN TRAVELLING NORTH. Nobel Prize winner, Daniel Kahnemann, a behaviour economics guru, carried out a range of experiments highlighting the irrational behaviour of human beings: Two roughly equivalent samples of respondents were shown one of two tea sets on a tray: Option 1 – New high quality full tea set for 4 Option 2 – New high quality full tea set for 4 with 2 additional damaged cups and saucers The tea sets for 4 were exactly the same. However, in every replication of this study, every one in every sample group put a higher price on Option 1. This is hardly a rational evaluation. The estimation of an ‘average’ value as opposed to a ‘total’ value was cited as a reason for this finding. In another experiment two groups of respondents were asked one of…