Dollars and Sense

When it comes to large, complex purchases, we can try to segregate our spending.

ritual: A piece of sushi, or a glass of wine, can seem “more expensive” by virtue of the actions we take and the movements we make when we consume them.

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,

It becomes a cyclical relationship: We’re willing to pay about one dollar because that’s how much the soda normally costs. This is the effect of anchoring. The world is telling us that the price of a soda is about a dollar, so we pay that price. Once we’ve purchased a can of soda for a dollar, that decision stays with us and influences how we deter

we need to pause, think, and remind ourselves that it’s just money. Our money.

defined. We often imagine our future selves to be entirely different people than our present selves.

We also become more invested in the product by virtue of our engagement with the language.

The most impressive effect was on how much they spent in the micropayment condition, where they were forced to think about the payment every time prior to purchasing (paying during). In this condition, the average participant spent just 4 cents.

People often say they’d prefer being the highest-paid employee of a company rather than the lowest-paid one—even if it means making less money.

When it comes to large, complex purchases, we can try to segregate our spending.