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The Tale of Two Bobs

Slate Money

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Is There a Loss Aversion?

Loss aversion is a very powerful bias. Would you rather pay more and get the same size coffee bag or just pay the same and get a little less coffee? I think we are habituated to certain sizes. And we are creatures of habit. One of the reasons why we don't like shrinkflation is because we have to wind up building new routines and new habits to accommodate the new sizes.

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