Members in the Media
From: Quartz

This classic thought experiment explains the weird decisions we make about spending money


Some years ago, I interviewed the Nobel prize­-winning psychologist and best­selling author Daniel Kahneman. He told me one of his all­-time favorite thought experiments, which is something of a classic in behavioral economics.

It involves a woman who has spent $160 on two theatre tickets. She is looking forward to the show, but when she arrives at the theatre she can’t find the tickets. She empties out her bag. She goes through her pockets. No sign of them. She feels slightly sick as she thinks of the large sum of money she’s wasted. But what about the show? Will she spend another $160 on replacement tickets, or will she just give up and go home?

Read the whole story: Quartz

More of our Members in the Media >

APS regularly opens certain online articles for discussion on our website. Effective February 2021, you must be a logged-in APS member to post comments. By posting a comment, you agree to our Community Guidelines and the display of your profile information, including your name and affiliation. Any opinions, findings, conclusions, or recommendations present in article comments are those of the writers and do not necessarily reflect the views of APS or the article’s author. For more information, please see our Community Guidelines.

Please login with your APS account to comment.