April 05

Psychology Of Money: When Money Makes People Lazy And Selfish

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Studies show that people inhabit two separate worlds - the social and the financial - and depending on which one is activated, their thoughts and behaviour can change dramatically...

When money doesn't motivate

This chasm between our social and financial worlds has been explored in two recent studies that uncover fascinating ways in which money affects our thoughts and behaviour. In the first, participants were subjected to one of social scientists' favourite ruses: the apparently pointless task. They were simply asked to drag a circle across a computer screen as many times as they could in five minutes (Heyman & Ariely, 2004)...[more]

References

Frank, R. H., Gilovich, T., & Regan, D. T. (1993). Does Studying Economics Inhibit Cooperation? Journal of Economic Perspectives, 7(2), 159-171.

Heyman, J., & Ariely, D. (2004). Effort for Payment. A Tale of Two Markets.  Psychological Science, 15(11), 787-93.

Vohs, K. D., Mead, N. L., & Goode, M. R. (2006). The Psychological Consequences of Money. Science, 314, 1154-1156.

From PsychBlog 
April 05

Psychology Of Money: The Emotional Power Of "Free/Gratis/ For Nothing"

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There is one magical price that we don't evaluate in the same way as other prices. Unlike the others, this number is guaranteed to make us go mad with desire. It makes us do strange things, it messes with our minds. That price is....FREE ...[more]

Reference
Shampan'er, K., & Ariely, D. (2006) How Small is Zero Price? The True Value of Free Products. Working Paper 06-16. Federal Reserve Bank of Boston's Research Center for Behavioral Economics and Decision-Making.

April 01

Psychology Of Money

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Whistlestop Tour of Research on the Psychology of Money

from PsycBlog