Indexgifts:Burning Man based on exchange of,86-88cash vs., as employee reward, 82-83mere mention of money and, 73—74social vs. market norms and, 72-74Gneezy, Uri, 76-77Gone with the Wind, 150Goode, Miranda, 74-75Google, 83goslings, imprinting in, 25, 34, 43government:social contract between citizens and,84see also Congress, U.S.gridlock, legislative, 151, 152Guidelines for Lawyer CourtroomConduct (Sweeney), 213guilt, social norms and, 77Hhabits:first decisions translated into,36-38questioning, 44Halloween experiment, 56-58Hamlet (Shakespeare), xviii-xix, 232Harvard Business School, 197-98honesty experiment at, 198-202health care, 110-11bundling of medical tests andprocedures and, 119-21defeating procrastination in, 117-21FREE! procedures and, 62-63mandatory checkups and, 118placebo effect and, 173-94; see alsoplacebo effectprice of medical treatments and, 176,180-87, 190public policy and spending on, 190scientifically controlled trials and,173-76self-imposed deadlines and, 118-19helping, thinking about money and, 74,75herding, 36-38self-herding and, 37-38Heyman, James, 69-71, 136, 262-63HIV-AIDS, 90Holy Roman emperors, placebo effectand,188Home Depot, 78Honda, 120,121honesty, 195-230contemplation of moral benchmarksand, 206-9, 213dealing with cash and, 217-30importance of, 214-15as moral virtue, 203oaths and, 208-9, 211-13, 215reward centers in brain and, 203,208Smith's explanation for, 202, 214superego and, 203-4, 208see also dishonestyHong, James, 21honor codes, 212-13hormones, expectation and, 179house sales:anchoring and, 30-31relativity and, 8-9, 19value in owner's eyes and, 129, 135Iice cream, FREE!, time spent on line for,61"Ikea effect," 135imprinting, 25, 34, 43see also anchoringindecision, 151-53individualism, 68thinking about money and, 74, 75ingredients, exotic-sounding, 164-65insurance fraud, 196, 223internal mammary artery ligation,173-74, 191inventiveness, 68IRA (Irish Republican Army), 156-57Iran, lack of trust in, 215irrational behaviors, xix-xxopportunities for improvement and,240-44systematic and predictable nature of,xx, 239see also specific topics1RS (Internal Revenue Service), 196274
IndexJJapan, savings rate in, 109jealousy, comparisons and, 15-19Jobst suit, 192-94Johnston, David Cay, 204judgment and decision making (JDM),xviiisee also behavioral economics"Just say no" campaign, 100,101KKahneman, Daniel, 19,129knee surgery, arthroscopic, 174-76Knetsch, Jack, 129Koran, 215LLatin America, lack of trust in, 214Lay, Kenneth, 219Leaves of Grass (Whitman), 40-41Lee, Leonard, 21, 157-59, 161, 263legal profession:attempts at improving ethics of, 213-14decline of ethics and values in, 209-10leisure, blurring of partition betweenwork and, 80, 81Leland, John, 122-23Leo III, Pope, 188Levan, Jonathan, 231-37, 263Li, Jian, 166-68Lincoln, Abraham, 177Linux,81lobbyists, congressional restrictions on,205Loewenstein, George, 21, 26, 30-31, 39,89, 263-64Lorenz, Konrad, 25, 43loss:aversion to, 134,137,138,148-49fear of, 54-55loyalty:in business-customer relations, 78-79of employees to their companies,80-84MMacbeth (Shakespeare), 188major, college students' choice of, 141-42manufacturer's suggested retail price(MSRP),30,45marketing:high price tag and, 24-25hype of, related to satisfactionderived from product, 186-87,190-91relativity and, 1-6, 9-10"trial" promotions and, 136-37zero cost and, 49-50market norms, 67-88companies' relations with theircustomers and, 78-80companies' relations with theiremployees and, 80-84doing away with, 86-88education and, 85mere mention of money and,73-75mixing signals of social norms and,69, 73-74,75-77, 79, 214reducing emphasis on, 88social norms kept separate from,67-69,75-76, 77-78willingness to risk life and, 84working for gifts and, 72-74working under social norms vs.,69-72Maryland Judicial Task Force, 210Mazar, Nina, 196-97, 206, 219-20,224,264McClure, Sam, 166-68Mead, Nicole, 74-75medical benefits, recent cuts in, 82medical care, see health caremedical profession:decline of ethics and values in, 210salaries of, as practicing physiciansvs. Wall Street advisers, 18-19memory of previous prices, pricechanges and, 46-47Mencken, H. L., 18menu pricing, in restaurants, 4Mills, Judson, 68mistakes, repeated, and failure to learnfrom experience, xviiMIT Sloan School of Management,92275
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USA $25.95CANADA $27.95• Why do o
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contentsCHAPTER 4The Cost of Social
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IntroductionHow an Injury Led Me to
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introductionAs YOU WILL see in the
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CHAPTER 2The Fallacy of Supplyand D
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CHAPTER 3The Cost of Zero CostWhy W
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the cost of zero costhas huge impli
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the cost of zero costdecision—the
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C HAPTE R 9The Effect of Expectatio
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the effect of expectationsMina and
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the effect of expectationswill be b
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C HAPTE R I OThe Power of PriceWhy
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the power of priceremoved. The thir
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the power of pricefunerals. By 1785
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the power of pricethe common cold a
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the power of priceworkouts. Both gr
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the power of priceis nothing "just"
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the power of priceabout placebos an
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CHAPTERItThe Context of OurCharacte
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