Think critically………embrace the challenge!
We are what we repeatedly do — Aristotle.
This workshop got me thinking. I began researching different biases and could connect with many of them. The list was endless… ambiguity effect, blind-spot bias, belief bias, negativity bias, the ostrich effect.
I am sure that I have demonstrated these biases many times. But after attending this workshop, I became cautious and began watching my thoughts and actions. When I read about the denomination effect, where people are less likely to spend larger bills than their equivalent value in smaller bills, I could immediately connect to it and caught myself demonstrating it. I also recall spending plastic money more easily than hard cash; the value being the same.
“I also recall spending plastic money more easily than hard cash; the value being the same.”
This also happens in a case of purchase by Credit card ..at that time purchase we don’t realise that the amount we are spending now is to be paid later.
Also at the time of sale in malls or everywhere i/we can easily big amount payment through debit card but if I have been told to pay the same amount in cash I will think twice before buying a particular thing.
I have not found myself acting out of denomination effect but surely I have seen this tendency more prominently in today’s young generation. They use credit card to buy things without foreseeing the future expenses and landed up in debt.