behavioural finance

Psychology of Money

In 2009, award-winning journalist Morgan Housel was awash in information about the 2008 financial collapse. Yet, try as he might, he could not find the answer to the question: “Why did people behave the way they did?” This is what led him to start formulating notes for what became a blog, and eventually a book titled The Psychology of Money: Timeless lessons on wealth, greed, and happiness (Harriman House, 2020). The book was launched on September 8. “What is a person’s relationship with greed and fear? The psychological side of investing is the most important side,” Housel said, “because if you […]

Pain of Payment for … the First Date

This concludes the interview with Professor Avni Shah regarding consumer behaviour and the connection we feel to the stuff we buy. And, possibly, to the people we buy it for. Click here to read the first half of the interview. Q: Did you look at other aspects of the connection? I said, let’s see how long this effect persists. I got data for the years 2004 to 2013 from an alumni association. What I was interested in is how alums make donations: by cheque versus card. Cheque feels more painful because you have to write out that amount. I wondered […]

Pain of Payment for … Coffee

“Me? Why do I have to pay for the falafels? I barely have two dollars to rub together,” said Morty. Tuesday is the two-for-one special at our local take-out Mediterranean shop. “Take it from me—you’ll enjoy them more!” I said, tapping the article I had just been reading in the New York Times. In a nutshell, it reported on new research in the Journal of Consumer Research that said having some difficulty in payment increased the consumer’s connection with the item purchased. He grabbed the section to read while we wolfed down our falafels.  “You’ve gotta interview these people,” he […]