Try this exercise ;

1- A  shopkeeper  offers you a pack  of video cassettes for 10$.

You  know there is a store  a few  minutes  drive  away where  you  can

get  exactly the same for 7$ – 30% less .

Would  you make  the journey ??

2-  A  shopkeeper  offers you a video – recorder  for 1000$ > You know

there is a store a few minutes drive away  where  you can get exactly the

same for 997$  -3% less  would you   make the journey ??

Most people say yes to question 1 and no to question 2 .

in the first case the motivation to go to the other store is not a purely

rational desire to save 3$.  A 3$     saving is available in the second case

too_ rationally the same reward for the same few minutes in your car.

The real motivation is something like: I wont enjoy using these video

tapes if  I feel i have been suckered

in the second case you are in the store face to face with the salesman and

about to spend big money on a luxury item.

Most people are disinclined to spoil the experience by acting like a


It is often difficult  to convince people that they act irrationally in

negotiations . participants on training courses usually insist to the

bitter end that all their moves are considered wise and purposeful. they

would drive around the block to save 30 per cent but not to save 0,3

per cent they say _ a rational distinction . but you do not carry

percentages in your pocket

          you carry money and for 3$ however you save it you can buy a cup of

          coffee and a piece of cheesecake .


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