Once upon a time, Americans waited until dinnertime to find out what happened in the world that day. Then, Ted Turner had a crazy itch to scratch and everything changed. Not for the better, I’d argue. For starters, people now tune to TV news — and to the Internet — [Keep reading]
I recently published a story about scarcity, and its powerful impact as a marketing tool. Order today! Only 3 remaining! Today’s I’m sharing a piece I wrote for PeopleScience.com that describes the underlying principle/mental shortcut that empowers scarcity — loss aversion. Losses loom larger than gains. The pain of losing [Keep reading]
I wrote a story for CNBC’s Grow site yesterday about the stock market’s remarkable turnaround. Down more 30% in March, but now up almost 50% since then…a run that has put S&P 500 investors right back where they were on New Year’s Eve. What happens next? I sure don’t [Keep reading]
It’s foundational to almost every scam you’ve ever read about. Act fast! Last chance! It’s also the force behind much unsavory human behavior. Fighting over distribution of scarce resources brings out the worst in us. It’s part of what makes racism so powerful (“They’re taking YOUR jobs!”). That’s why it’s [Keep reading]
FICO admitted this week that its credit scores don’t do such a good job of predicting which consumers might not pay their bills someday soon. The credit-scoring firm rolled out a new product called the FICO Resilience Index, which theoretically will tell banks which consumers will be able to weather [Keep reading]
The developer of a popular yoga iPhone app says Apple is forcing him to “steal” from users by requiring implementation of gotcha-style automated payments at the end of their free trial. The developer currently lets fans of the Down Dog app opt-in to monthly payments at the end of the [Keep reading]
If you read my recent entry on the Dunning-Kruger Effect, you’ve probably figured out that I enjoy a story that takes (some) people down a peg or two. Maybe it was all those years covering tech companies in Silicon Valley and Seattle, where fortunes are made on vaporware, owing [Keep reading]
We’re all used to earning interest at a bank when we save money. But could a financial institution soon charge you ‘interest’ to park your money there? Yes, says Ken Tumin, the man behind DepositAccounts.com. Interest rates are now so low that saving money could soon cost consumers. In today’s [Keep reading]
Emotional attachment can be costly. In fact, social scientists have actually measured how costly! People become too attached to stocks, to real estate, to automobiles, and of course, to ideas. We endow things we have with added value because of these attachments, and that makes us poor players in a [Keep reading]
Old advertising pitches nearly always boiled down to a cliche — “Half of advertising works, half doesn’t, and we don’t know which half is which. So, you’d better advertise.” Then the Internet came along and changed that equation, promising precise data on which ads do work, through highly targeted ads, [Keep reading]
Bob Sullivan