Wealth Effects : If you received $10 you’d... - Deepstash

Wealth Effects: If you received $10 you’d be happy. How much would you need to be twice as happy? The rational answer is $20. But research by S. S. Stevens found people require $40 to double the joy of receiving $10. The relationship between money & happiness is not linear.

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claudiu_florea

A sparkling curious mind

William Poundstone offers many examples of how our perceptions of prices vary depending on cues, context and contrast.

The idea is part of this collection:

Behavioral Economics, Explained

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