Inside Insights
- Kyle Rich
- Nov 21, 2022
- 2 min read
Updated: Feb 17, 2023
Welcome to The Rich Insight blog
Hello to all the readers of this blog! My name is Kyle Rich, and I'm the founder of The Rich Insight. A little bit about me...I earned a BA in Business Administration from Hanover College, and an MBA from Indiana University. Over the past 10 years or so, I have been fascinated by leadership, efficiency, and behavioral economics.
Over the course of the entries in this blog, I plan to pose some thought provoking questions for you to ponder and will share my observations of how seemingly rational people do irrational things based on motivation to make the irrational choice.
This week's question--it's really 2 questions
Scenario I: You want to buy a lamp. At Store A, you find the lamp you think will make your life complete. The lamp is $150. Comparison shopping finds you the very same lamp for $125 just 5 miles down the road at Store B.
What do you do?
A. Buy the lamp from Store A and call it a day.
B. Hop in the car and drive the 5 miles to Store B to save $25.
C. Decision making paralysis ensues, and you don't buy either lamp.
Scenario II: You want to buy a car. At Store C, you find the car for $22,350. At Store D, which is 5 miles away, the same car is sold there for $22,325.
What do you do?
A. Drive 5 miles to Store D to save $25.
B. Save yourself some time, and buy the car at Store C.
C. You change your mind and decide to hitch hike.
In closing
Answer the questions. You are encouraged to post your answers and rationale in the chat. I'll close out the discussion during the week.
Have a very happy Thanksgiving!
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Interesting to think about the context of saving $25 with regard to something that is relatively high-priced vs. low-priced. It's still the same $25.