Why would you take money out of your paycheck at the beginning of the month when you don't know how much money you'll need?
Dan ArielyThe retail industry has its own headache: it loses $16 billion a year to customers who buy clothes, wear them with the tags tucked in, and return these secondhand clothes for a full refund.
Dan ArielyBut because human being tend to focus on short-term benefits and our own immediate needs, such tragedies of the commons occur frequently .
Dan ArielyMarketing is all about providing information that will heighten someone's anticipated and real pleasure.
Dan ArielyThe things that motivate us are to help other people, to feel that we're useful, to feel that we're getting better, to feel that we are kind of living to our potential, to get a sense of meaning. All of those things are positive.
Dan ArielyWho would you trust right now? Which bank would you trust? Which investment would you trust? Do you really want to put your money; do you want to suffer more of these losses that we just had? You know, these volatility that we see is just unexplainable by any rational standards. Nobody has any clue about how to explain this, and nobody wants to experience that. So, we hold more money back, we don't necessarily want to invest in the market and by default, people are saving more.
Dan Ariely