Prospect Theory proposed that the (dis)utility of losses is always more than gains due to a phenomena called ‘loss-aversion’, a result obtained in multiple later studies over the years. However, some researchers found reversed or no loss-aversion for affective judgments of small monetary amounts but, those findings have been argued to stem from the way… Continue reading Is loss aversion magnitude dependent?
Indian psychologists have been discussing multiple important issues relevant for social development but with limited success in seeing their insights being implemented in actual government policy making. With new governments and major drives for social development, is it not yet time to make behavioral science an important knowledge domain for social planning? Placed in contrast to… Continue reading Isn’t it yet time for the Indian government
A prosocial bonus is money given to people that needs to be spent on others. This article suggests a new way of implementing corporate social spending by involving the employees using ‘prosocial bonuses’. Such a policy can potentially serve a dual benefit of improving employee satisfaction and help companies reach the mandate for social spending.… Continue reading Prosocial bonus and corporate social responsibility spending
The purpose of this paper is to study how consumers process price frames of product bundles (product plus surcharge) and discount offers to weigh contentious positions between the weighted-additive and the reference-dependent models. Further, some research suggests bundling, while others suggest partitioning to be a more effective pricing strategy. This research evaluated the relative influences… Continue reading Price discount framings on product bundles with shipping surcharges in the Indian market
People can zoom in (focus attention) or zoom out (distribute attention). It is possible to induce these two procedural modes in the lab by asking people to either process global letters or local letters. We found that after asking people to process either the global or local letters and then presenting charities varying in the… Continue reading Global processing fosters donations toward charity appeals framed in an approach orientation
MEDIA MENTION : Times of India newspaper (pdf) (html) With continuous growth in information aggregation and dissemination, studies on privacy preferences are important to understand what makes people reveal information about them. Previous studies have demonstrated that short-term gains and possible monetary rewards make people risk disclosing information. Given the malleability of privacy preferences and the ubiquitous… Continue reading Money makes you reveal more
The relationship between money and happiness has always been one of hide and seek. Does having more money lead to greater life-satisfaction? Literature so far directed to two opposing directions. Some studies show that greater income leads to greater life-satisfaction, while others show otherwise. Economic theories on happiness suggest that with greater income happiness increases… Continue reading Money cues influence life-satisfaction predictions for new educational institutes