The Psychology of Money

BONDBONDBONDBONDlau

Market and Social Norms

1.Borrow two of my friends and my brothers phone charger for 5 dollars.

2.Next day borrow them for free.

This was a failed experiment because they all agreed to be paid but then also agreed to o it for free

Price of FreeI had two chocolate bars with me, one of cheap quality and small size, one of high quality and large size. I priced the small one at $8, and the high quality one at $12. I asked my friends which they would buy, and they said they wanted the high quality one.

However, when I made the low quality bar free, and decreased the price of the high quality one to $5, they wanted the low quality bar instead.

The theory worked for my friends, and it would work on me as well, because who wouldn’t want things for free?

Micro PaymentsWe asked three people if they would rather pay for a VLT once every time they bought it or get subscription and get one everyday. Most people opted for the subscription. We didn’t give them the VLT though :D