Over Inversting In Fixing

Behavioral Economics, Predictably Irrational, Dan Ariely

Category:

Education

Tags:

• Ariely
• Behavioral
• Dan
• Economics
• Irrational
• Predictably

[gjack80]

"for prosperity" --> "for posterity"

[danariely]

You are correct -- sorry about that

[Yamikaiba123]

My parents once brought up the reason that if they would fix some things in the house, the re-sail value would be much higher than if there were those problems. If we're talkin about selling it again, there might also be good intentions. Someone may not want to be the kind of "cheapscate" who would make repairs to only last 5 years, and then resell it for the next person to get all those problems you left behind.

[cinndave]

People want their place to be a little overbuilt so that the likelihood of it breaking again is one less thing to worry about. To them, it's worth it.

[nashatbi]

I do not necessarily agree with that, in my own experience at least. I am a successful and well-paid M.D.. and I do not have any financial problem investing in fixing or over-fixing. I think the more details we go into to describe our happiness, we loose the thrill about it. As long as the fridge is working, the water is running, the ceiling is not leaking, I am ok with that and I could not care less about uneven painting or a broken knob.

[Hythloday71]

Yes I agree, people don't correctly price the cost benifit ratios, as many have said, they react emotionally

[bingybongycakeycakey]

Moving is one of the most stressful life events. I think people want a house to be perfect when moving in because they want to "recover" from moving; they don't want other details to worry about. The average amount of time before people move is five years. People move into a house, think "I'm finally finished, I'm glad I got that over with, I'm not going anywhere", and then eventually become dissatisfied with their material possessions, size of house, etc. Keeping up with the Joneses.

[bonniemcgp]

I'm not sure I want things to be fixed for 100 years, but I would want them to be fixed long enough that I never have to fix them again. I've lived in a house for 30 years --much longer than I thought I would, so I would have liked things to stay fixed for that long. Unfortunatly, they don't. My son just moved into a new house and he wanted it to be perfect both because it is a brand new house and because it is his brand new house. I will feel the same when I move.