Which kind of promotion gets you to spend more—a 50% off discount or a “Buy One Get One Free” offer? The short answer: a Buy One Get One Free offer performs better than its economically equivalent 50% discount. The longer answer: a Buy One Get One Free offer performs better than its economically equivalent 50% […]
risk
Prospect theory: How you make decisions when you don’t know the outcome
Every day you make decisions. Sometimes you can predict the outcome. Sometimes not. Sometimes your decisions are binary—this or that—both with positive outcomes. You’re choosing between two wins. Other times, you need to decide to take action–or do nothing. Even the decision not to decide is still a decision. Other decisions are complicated. Like this: […]