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S E2: Core Principle 1 - The Cost-Benefit Principle - The Pros & Cons

Think Like An Economist

CHAPTER

How to Avoid the Framing Effect at Restaurants

A common pitfall is that people will be influenced by how something is sold to them. People might be more likely to buy something they don't really want simply because it's on sale. This is called the framing effect, and we've all fallen for it. One trick to avoidin the framing effect is to ask yourself first, how much am i willing to pay for this goach cheese salad? Only after that should you look at the price or the rest of the menu. Even if there's a 60 dollar lobster on the menu, it doesn't make a 20 dollar hamburg or a bargain.

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