9.15.2009

Ellen Ruppel Shell - Cheap

An eye opening book, don't agree with it all, but the underlying theory that the need for cheap will eventually affect us all is probably true.

Some interesting quotes from the book...

Page 62 - "...universal phenomenon of loss aversion, the tendency of most people to strongly prefer avoiding losses rather than acquiring gains..." We want to win but our we are more likely to make decisions so that we don't lose. Losing is worse then winning so often we just don't play because the fear of loss is more overwhelming. Why we hang on too long in jobs or stocks...

Because of priming we are more likely to worry about getting killed in a car accident if we just recently witnessed a fatal crash.

Page 73 - "the reflexive, primitive area of the brain responds more powerfully when confronted with what may happen than with what does happen."

Page 110 - "When consumer goods are marked down to a pittance, those of us who can least afford it end up paying the difference in the form of low wages, lost opportunity, and crushing debt."


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