loss aversion

Where Did All the TP Go? The Behavioral Economics Of Hoarding

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Empty store shelves with red trays and price tags but no products

No toilet paper…anywhere? Really? It’s not unusual that people stock up in response to storms and political uncertainty. Indeed, some groups, “preppers”, accumulate years of supplies, anticipating a large-scale breakdown in society. Hoarding is a well-known psychological disorder, but that’s about collecting and retaining huge amounts of worthless items. However, empty supermarket shelves don’t necessarily mean … Read more

11 Ways To Fatten Your Wallet With A Little Psychology

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I never could have imagined how important managing emotion, cognitive biases and behavioral hurdles is to saving enough, spending wisely and managing financial risks. For about a year, I informally coached a woman (we’ll call her “Leigh”) in her late twenties who wanted to eliminate the $5,000 of expensive credit card debt she was rolling over each month, … Read more