This, then is what we call arbitrary coherence. Initial prices are largely “arbitrary” and can be influenced by responses to random questions; but once those prices are established in our minds, they shape not only what we are willing to pay for an item, but also how much we are willing to pay for related products (this makes them coherent).
D. Ariely, The Irrational Bundle: Predictably Irrational, The Upside of Irrationality, and The Honest Truth about Dishonesty
“That’s a lesson we can all learn: the more we have, the more we want. And the only cure is to break the cycle of relativity.”
D. Ariely, The Irrational Bundle: Predictably Irrational, The Upside of Irrationality, and The Honest Truth about Dishonesty
“The goals that people set for themselves are so important to what they do and how they feel about it that an exclusive focus on experienced well-being is not tenable. We cannot hold a concept of well-being that ignores what people want. On the other hand, it is also true that a concept of well-being that ignores how people feel as they live and focuses only on how they feel when they think about their life is also untenable.”
D. Kahneman, in Thinking, Fast and Slow
“a puzzling limitation of our mind: our excessive confidence in what we believe we know, and our apparent inability to acknowledge the full extent of our ignorance and the uncertainty of the world we live in.”
D. Kahneman, in Thinking, Fast and Slow
“Overconfidence is fed by the illusory certainty of hindsight.”
D. Kahneman
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