Archive for the 'linkage' Category

Some good advice on shopping, but did you know there was such a thing as a neuroeconomist?

Take, for example, an experiment conducted by Stanford neuroeconomist Baba Shiv. Shiv had a group of people solve word puzzles after having them purchase the energy drink SoBe Adrenaline Rush (which claims on its package to improve mental acuity). But there was a catch: Some people bought the drink at full price, and some bought it at a discount. Despite the fact that the drink was the same with or without the discount, the people who got the discount version solved about 30% fewer puzzles.

What’s particularly interesting about the Shiv result is that people not only thought the discount SoBe was worse, they actually derived less benefit from it.

The brain wants what it wants. And, often, what it wants is to waste your money.