we are curious creatures

I'm almost done reading a book entitled, "Predictably Irrational", for a book club I am in. Basically it talks about why we make the decisions we do. Some of the studies done were fascinating and I thought I would share a few:

*Obviously restaurants make the most money on the pricier menu items. But did you know that they make more money on the #2 most expensive item, rather than the #1? The main reason for even having the #1 is to trick us. We think, "Hmm...that is quite pricey. I better get the slightly less pricey one and I'll feel better about my decision." It's hard to justify the MOST expensive item...we feel like better spenders if we bypass that for the only slightly less expensive choice. Restaurants will often keep the #1 even if it never sells because they know the effect it has.

*If you see a shirt at Target for $20, but know Walmart (which is 15 minutes away) has the same one for $7 less, the majority of us would think the 15 minute drive is worth saving the $7. However if you were looking at a $300 TV at Target and knew it was $7 less at Walmart, you most likely would not make the 15 minute trip. For some reason, the ratio of how much you are saving compared to the overall cost affects how much we are willing to do to save the $7, despite it being the exact same savings each time.

*A six pack of coke was left in a college dorm refrigerator. Within 72 hours, every can had been taken. A plate of six $1 bills was left in the same refrigerator. After 72 hours, none had been taken. The point? People find it more difficult to steal straight cash.