Critical awareness- Story 1
I was just reading all the list of cognitive biases not with an intention to find one for me 🙂 but to understand them. When I reached denomination effect, I suddenly stopped there and thought of reading the article given in the Notes section. The story was interesting. An experiment done on use of coins compared to notes when you buy something. The experiment was done in US and overseas to compare the effect. The link of the article is here.
To my surprise I do something similar to it. When I have an amount for household expenses, the first thing I do is go looking for change and Petrol pump is my favourite place to explore that option. For me, using that 500 or 1000 rupee note is difficult as the amount looks huge but when converted to change of 100,50 and 10 rupees it is easy (Confession: Doesn’t apply for my love for clothes). To save, I always hunt for 500 and 1000 rupee note. Very similar to the experiment described. I guess, this is due to one another type of bias called “Bandwagon effect”-The tendency to do (or believe) things because many other people do (or believe) the same. I have seen most of the people around me in my childhood doing it.
Hunting more about such articles in Notes section to cross reference, I came across this book “Predictably Irrational” by Dan Ariely. (The Hidden forces that shape our decisions). Will definitely read this when my back log is over :).
My question at this moment of life: “Critical Thinker” v/s “Faith” (e.g. Homeopathy and Acupuncture article)