A friend of mine has a house to rent, finely decorated and in a good location. He quoted himself 4000 yuan/month. Several people came to see the house and thought it was too expensive. I hope to reduce the price to 3500 yuan. As a result, he refused to surrender, and the house was vacant for half a year.
I asked him: Why can't we rent it cheaply and quickly? He said: the decoration is so good that it is not worthwhile to rent cheaply! Vacant for half a year has lost at least 2 1000 yuan in rent, not counting property fees. But from the owner's point of view, anyway, the house is there, just empty, and it seems that there is no loss.
This is a common mistake people make in financial management: they are numb and insensitive to the benefits that have not yet been obtained. Care too much about what you already have.
If I take out 2 1000 yuan in cash from this friend's backpack and tear it off one by one in front of him, it is estimated that he will jump up at once to stop my atrocities.
They are the same in nature, but their reactions are quite different. Twenty thousand dollars can buy five IPAD2, you can go to the United States for seven days, or it may be the living expenses of rural children for two years. But because these incomes are not obtained, people will not be too sensitive. If the money has been in our wallets and is suddenly taken away, most people will be furious and call the police immediately.
For example, someone originally planned to give Lao Li an electric car, but later the other party said that the car was taken away by relatives, and Lao Li would be a little depressed. But don't care too much.
Lao Li's own electric car was parked in front of the supermarket and stolen by thieves. It is estimated that Lao Li will feel uncomfortable for several days. The same applies to the concern for life. Most diseases (including cancer) can pass physical examination, early detection and early treatment, but everyone is unwilling to take the initiative to go to physical examination. The reason is simple: physical examination will only bring two results? 1, nothing happened, but my heart fell. Live as before. 2, check out the problem, immediately become a patient, or even directly sentenced to death.
Physical examination means that you may lose it. If you don't go, it seems that there is nothing to lose by keeping the status quo. So most people choose not to go to the hospital until they roll in pain and spend more money to suffer more. People are afraid of losing, but they don't care about not getting it. One last question:? On the ground? Ten cents, will you pick it up? If this dime fell out of your pocket, would you pick it up?
These people mentioned above are afraid of losing, but they don't care about not getting it. 100 The happiness brought by Yuan Bai can hardly offset the pain brought by the loss of 100 yuan. This theory can also explain many phenomena in the stock market.
Let's do such an experiment first.
A: Changing careers will definitely earn 30,000 yuan.
B: There is an 80% chance that you will get 40,000 rpm, and there is a 20% chance that you will get nothing. This conforms to the 28 th law of the growth of all things. Where you put your time, you will get knowledge or money or gain there.
? Which one would you choose?
The result of the experiment is that most people choose a.
According to traditional economics, choosing a is wrong, because 40000×80%=32 000, and the expected value is greater than 30000.
The result of this experiment is that when most people are profitable, they tend to be cautious, risk-averse, like to accept good things and are afraid of losing their existing profits. "
The "deterministic effect" shows that investors have a strong profit-taking tendency and like to sell stocks that are making money. This is the time for stocks to run away from the daily limit. Missed the continuous inflation in the back.
When investing, most people's performance is "delay if you lose, and leave if you win." In the stock market, there is a widespread "selling effect", that is, investors' intention to sell profitable stocks is far greater than their intention to sell losses.
When I was just quilted, I didn't want to stop loss and bear the loss. But if it continues to fall, people will worry about greater risks and more losses, and this worry will continue to grow, which is unbearable. In order to reduce the expected loss, it will become a practical action to cut the meat desperately. But after understanding this irrational behavior, it is possible to make a more scientific and objective judgment. Therefore, everyone should overcome this fear now. After all, it's not 2008, so you must not cut meat.
Endowment effect means that once an individual owns an item, he will overestimate its value.
Professor richard taylor, another important pioneer of behavioral economics, once asked some Canadian students to do such an experiment: 1 Group: Professor Taylor prepared dozens of mugs with the name and emblem of the school. The retail price of these mugs in the school supermarket is 5 yuan, and the professor has torn off the price tag before taking them to the classroom. Taylor came to class and asked the students how much they would pay for this cup (giving the choice between 0.5 yuan and 9.5 yuan). Group 2: Professor Taylor came to the second classroom in the same way, but this time he gave everyone the same cup as soon as he entered the classroom. After a while, the professor said that there were not enough cups because the school organized activities to hold a conference today, and some needed to be taken back. The teacher asked everyone to write down at what price they would like to sell the cup (giving the choice between 0.5 yuan and 9.5 yuan).
The experimental results show that in the 1 group, students are willing to buy a cup with a school logo at the price of 3 yuan money on average; In the second group, when students were asked to sell the cups they already owned, the bid suddenly increased to 7 yuan money.
Compared with acquisition, people are very reluctant to give up what already belongs to them. Taylor called this phenomenon "endowment effect".
Application in borrowing money: lend a friend 1 10,000 yuan and ask him for it two years later. Even if the other party has the strength to pay back the money, it is also reluctant.
Reason: Your 10,000 yuan was borrowed by your friend. When he has it for a long time, he will naturally feel that it is part of his assets. Once he vomits, it will be very uncomfortable, just like you robbed him of his money.
Therefore, if you lend money to others, it is best to charge interest on a monthly basis, or let the other party pay in installments. Keep reminding friends that this money is not yours. In this way, the probability of debt is reduced.
Look at the way banks borrow money, every month. If the bank lends you 65438+ million and tells you to pay back the principal and interest once every three years, it is estimated that most people can't afford it. Because in my heart, I thought the money was my own.
Also, when you see a dissatisfied product that can be returned within seven days, you should remind yourself that it may really be possible to return it, but when you take a product home for trial, the "endowment effect" has begun to work on you. You are unlikely to return what you already have.
When it comes to falling in love, many young people fall in love in a muddle and get along for a period of time. I find it inappropriate to quarrel constantly. But because of the "endowment effect", most people will choose to make do with it and make do with it.
Will say, "In fact, he still has many advantages." "Actually, she is very kind to me." "I have given so much, I really can't give up", so many people make do together. Once really separated, it is estimated that no one will look back.
There are many simple truths in life, but most people don't know them. This is the direct cause of many people's embarrassing lives.