Dollars and Sense

general: Every time we face a situation where we know less than others and that gap can be used against us—which is the case in much of life and for people of all persuasions—we stand to gain a whole lot from studying up even a little bit.

They may be the only attribute that we can easily understand, but they’re not the only attribute that matters. Consider using other criteria, even when they’re hard to measure.

When making decisions, consider only where we are now and where we will be in the future.

But let’s be careful not to fall for false effort. We ought to watch out for too much transparency. If a consultant shows us all the great pains they have gone through to produce nothing but their $100,000 fee, reconsider. If a Web page is just a progress bar and a “Pay Now” button, keep searching.

Remember, our lack of self-control is due to discounting the future—because we are not emotionally attached to it—and to our willpower’s failure to overcome the temptations of the present.

We should watch out for trial offers and promotions. Marketers know that once we own something, we will value it more and have a harder time giving it up.

itself. We should be aware of the source of expectations—whether it’s the pleasure of dreams and aspirations or the irrelevant allure of brand names, biases, and presentation. Or,

salvation. A price is just a number, and while it can be a powerful part of a decision, it doesn’t, and shouldn’t, mean everything.

When it comes to spending, trusting our past decisions contributes to the problems of anchoring, herding, and arbitrary coherence. So we should question seemingly “random” numbers, prominently placed MSRPs, and insanely high-priced products. When we see a $2,000 shoe or a $150 sandwich, watch out for the second-most-expensive shoe or sandwich or sh