Two avid sports fans plan to travel 40 miles to see a basketball game
One of them paid for his ticket
Other got one for free from a friend
A blizzard is announced for the night of the game.
Which of the two ticket holders is more likely to brave the blizzard to see the game?
The fan who paid for his ticket will be more determined to see the match because ‘he has more to lose’
Even as we articulate our answer, we realise the flaw in it. The money is already gone.
Taking the additional risk of driving in a snowstorm will not get it back. #Behavior
In 2011, Nobel winner Daniel Kahneman, who made behavioural economics a widely known idea, published Thinking, Fast and Slow, which laid out his ideas in an accessible form #Book#DanielKahneman#behaviouraleconomics