1058

LESSWRONG
LW

1057
Personal Blog

14

Zero Bias

by Alexandros
17th Nov 2010
1 min read
5

14

Personal Blog

14

Zero Bias
5JGWeissman
1Zvi
0Manfred
0xamdam
0InquilineKea
New Comment
5 comments, sorted by
top scoring
Click to highlight new comments since: Today at 1:05 AM
[-]JGWeissman15y50

In the credit card example, 0% interest prompts me to ask "What's the catch?"

Reply
[-]Zvi15y10

At work we have highly variant results, and it has a huge effect on my decisions knowing that it's far more important in terms of how I am perceived (and how I feel, even though I know better) to go from -100 to +100 than to go from +100 to +1000.

Reply
[-]Manfred15y00

Interesting, thanks.

Reply
[-]xamdam15y00

Interestingly 0 as in "free stuff" is also often mispriced (hence all the 'free offers' you get in the mail).

Reply
[-]InquilineKea15y00

Yup, Dan Ariely often talks about this in his books.

Reply
Moderation Log
More from Alexandros
View more
Curated and popular this week
5Comments

It seems another bug in the human brain is being uncovered:

"Whereas a 20 percent interest rate may look very large compared to one percent, it may not look as large compared to zero percent. Zero eliminates the reference point we use to assess the size of things," 

http://www.scienceagogo.com/news/20101015200630data_trunc_sys.shtml