Economy highlights

Hey, sorry it’s been a while, I’m having way too much fun in life rn, kidding – can’t have it too good. Anyway, I’m reading this book for a class which had a section in it I thought I’d straight out translate into English with my best ability and cite for you all – because it is pretty neat. And it’s a bit from Dariush Arai’s book ‘Introduction to Cognitive Psychology’ 2001, page 168…

Richard Thaler (1985) suggested some guidelines for enjoying your $$$$$$$$$$$$ winnings and not getting down too much about your losses. 

And this is what Arai (2001) described those tips/guidelines to be (roughly translated into English):

1. If you have several income sources, keep them separate. Several small winnings create bigger happiness than one big win.

2. If you have several expenses, combine them into one if possible. Several small losses are more painful than one separate big *expense post*. 

3. If you have greater earnings than expenses, combine them so that the result become a positive net win (and view your expenses as operating costs).

4. If you have greater expenses than earnings, keep these separate from each other so that you can keep some *point of light* to be grateful for.

How true aren’t they? Also sort of read in the book that if monetary winnings and losses where displayed on a scale and a curve like, the losses part of the curve would look much steeper than the winnings in accordance with how we experience it. Does that make sense?! So, if you ever felt shitty about dropping $20 and not as excited about earning the same amount then, I mean; now you know why like!

Best,

Bebe

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