The Ultimatum Game and Dictator Game
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Post No.: 0389   Fluffystealthkitten says:   People can behave quite irrationally, particularly when money is involved! Since money was invented rather than is something that’s innately natural – hence the human species didn’t exactly evolve with it in their … Read More

Responding to an Ultimatum and Fighting Fire with Water
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Post No.: 0375   Furrywisepuppy says:   So you were acquainted with added value and how this relates to power in negotiations in Post No.: 0319. Now if an ultimatum is given to you, such as, “Do you accept a … Read More

The Wealthy, Corrupt and Criminal
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Post No.: 0364   Furrywisepuppy says:   Systems, from governments to businesses and other organisations, become corrupt when politicians, businesspeople and other individuals can rationalise bribes, kickbacks, money laundering, etc. as being just like regular quid pro quo trades, bargains … Read More

Loss Aversion and Overvaluing Losses
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Post No.: 0345   Furrywisepuppy says:   ‘Loss aversion’, which has been briefly mentioned a few times before, is when the negative utility of giving an item up feels greater than the positive utility of acquiring that exact same item. … Read More

Get Richer by Working Your Assets Off
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Post No.: 0333   Fluffystealthkitten says:   Assets normally appreciate faster than wage rises do i.e. the rate of compensation for one’s labour doesn’t usually rise as fast as the value of investment assets that just sit there, often doing … Read More

Added Value and Bargaining Power
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Post No.: 0319   Fluffystealthkitten says:   The art of negotiation is such an interesting topic to both Furrywisepuppy and me, so I will help continue our journey into learning more about it…   ‘Added value’ is equal to the … Read More

The Pain of Paying, and Mental Accounting
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Post No.: 0307   Furrywisepuppy says:   Continuing from Post No.: 0163, people tend to feel more ‘pain of paying’ when paying by cash rather than by card, casino chips or credits, and so people tend to find it easier … Read More

Spending to Stimulate the Economy
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Post No.: 0293   Fluffystealthkitten says:   Spending is often extolled as the solution to getting out of any economic recession. It’s true that domestic spending will boost the domestic economy. But no one can spend or consume if they … Read More

The Poor Must Work Harder and Be Smarter to Get the Same Outcomes
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Post No.: 0285   Furrywisepuppy says:   Continuing on from Post No.: 0253 and the topic of how it’s easier to get richer if you’re already rich, whether one inherits one’s initial wealth or earns it…   Anyone can become … Read More

Your Best Alternative to a Negotiated Agreement
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Post No.: 0273   Furrywisepuppy says:   Before entering into any major negotiation situation – always do some homework and preparation. Know firstly what it is that you really want – money isn’t always the only goal or the most … Read More

Economies of Scale and Buying Out the Competition
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Post No.: 0253   Furrywisepuppy says:   This continues on from Post No.: 0234 and the topic of how the rich get richer. I apologise again that it’s going to be more of an info dump than a neat post, … Read More

How the Rich Get Richer and the Poor Stay Poor
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Post No.: 0234   Furrywisepuppy says:   There’ll eventually be a series of posts on this topic about how the rich find it much easier to get even richer by virtue of already being rich; which is tightly related to … Read More

Gamification and Simple Measures for Complex Things
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Post No.: 0197   Furrywisepuppy says:   ‘Gamification’ is the application of game design elements and principles – such as points, badges and leaderboards – in non-traditional game contexts (e.g. to encourage individuals to be more physically active or engaged … Read More

Some Irrationalities We Exhibit When it Comes to Money
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Post No.: 0163   Furrywisepuppy says:   The following is a selection of some of the peculiar irrationalities we exhibit when it comes to money. You might say it continues on from Post No.: 0020 about how people sometimes behave … Read More

The Anchoring Effect on Prices and Other Numbers
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Post No.: 0144   Furrywisepuppy says:   Any number that you are asked or primed (either manipulatively by another party or unwittingly by yourself or anyone, and either consciously or unconsciously) to consider as a possible solution to an estimation … Read More

Fairness and the Principle of the Divided Cloth
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Post No.: 0133   Furrywisepuppy says:   This post requires understanding what a ‘pie’ means in negotiation contexts, which has been explained in Post No.: 0124.   If one creditor is owed £300 and another creditor is owed £100, but … Read More

Splitting the ‘Pie’ in Negotiations
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Post No.: 0124   Furrywisepuppy says:   In scenarios involving only two parties (as an example) – the ‘pie’ in negotiation contexts is the net combined benefit arising from the two parties reaching an agreement together, minus party A’s net … Read More

The Best Cons are the Ones You’re Happy to Go Along With
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Post No.: 0107   Furrywisepuppy says:   Most of us are generally unaware of what techniques and tricks are influencing us as consumers, leading to behaviours like buying frenzies during sales, cult-like followings towards certain brands, people purchasing things they … Read More

Expected Value, Opportunity Costs and Sunk Costs
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Post No.: 0065   Furrywisepuppy says:   If you prefer x to y, then you should also prefer a z% chance to win x to a z% chance to win y. We can calculate the ‘expected value’ or ‘expected utility’ … Read More

Knowledge Can Save You a Lot of Money
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Post No.: 0036   Fluffystealthkitten says:   If you don’t have the faintest idea how something is made or what really goes into making and marketing it then you can end up paying way over the odds when you come … Read More

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