weird ideas about money

January 15, 2008 – 10:18 am

our minds work in very strange ways. check this example:

Would you rather earn $50,000 a year while other people make $25,000, or would you rather
earn $100,000 a year while other people get $250,000? Assume for the moment that prices of
goods and services will stay the same.
Surprisingly — stunningly, in fact — research shows that the majority of people select the first
option; they would rather make twice as much as others even if that meant earning half as much
as they could otherwise have. How irrational is that?

there’s something really interesting about behavioral economics. why do we think a certain way until
someone points out the “wrongs” of our ways, especially when it comes to money? of course there are
some who are not “average” in that they would’ve chosen the 100k a year. But it seems obvious that
you would want to make 100k rather than 50k since that really should be the only factor.

but in our society where competition seems to be paramount, people just want to beat others even if
it means “less” for them…

why are we wired this way? and how do we change it wholesale?.. something to chew on

[via: LA Times]