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Showing posts from September, 2017

How choices change behavior

Finally, a relaxing mini-vacation! Just Mike and I in Aruba – a place that holds many nostalgic memories for us, including one very special marriage proposal 14 years ago (can it be that long ago???). With all the tranquil beauty of the sea, the beach, the perfect sunsets, one naturally reflects on … optimality of choices? Yes, when the “one” is an economist.

      Here is a dilemma for you. Upon arrival at our hotel, the front desk clerk makes us an offer to upgrade to the club level.  The freebies include: continental breakfast, light lunch, hors d’oeurves and desserts in the evening, unlimited wine and top-shelf liquor throughout the day, and a daily spa “activity” which no one could explain to us. There is also some less exciting stuff like daily laundry and pressing, concierge service, and free internet (which is already free for all guests J). The cost at face value: $300 per day for the two of us (a “discount” from the normal rate of $400 per day).  What would you do?  Well, l…