When the American kitchenware company Williams Sonoma launched a breadmaking machine it initially sold badly – until it introduced a more expensive model after which the cheaper one did well. Speed-daters are less likely to want to meet a partner again if their previous speed-date was especially attractive. Estate agents sometimes show clients a grotesquely overpriced property with the intention of making their other properties seem more attractive. And watching TV makes us unhappy by reminding us of the mundanity of our own lives.
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Behavioural Finance
When hirelings fail
Christmas teaches us that we often fail to act in others' best interests even when we are trying to do so. This has important implications for investors
Chris Dillow