Once our brains are told to think in market terms, we automatically scale our effort to the compensation. When asked to do something on a social basis, we hold ourselves to a higher standard; at least as high as a highly paid worker
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How pronounced is the separation between your social life and your business life? Ariely shows that the line between the two spheres is sharply drawn, but easily crossed.
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This example illustrates “arbitrary coherence.”
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Because there has never been demand for black pearls, Assael was entirely unable to sell any – until he tried placing them at an extravagant price in the window of a Fifth Avenue jeweler.
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ble—and avoid comparing things that cannot be compared easily.
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cases in which individuals make repeated mistakes—without being able to learn much from their experiences.”
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focus on comparing things that are easily compara
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We don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly.