Afford Anything

Would You Shock a Stranger? What a 1960s Experiment Reveals About Your Money Decisions

5 snips
Oct 31, 2025
In this insightful discussion, Dr. Sunita Sah, a former physician turned Cornell professor, delves into the psychology of compliance and authority. She reveals how even well-meaning individuals can follow orders that feel wrong, highlighting the infamous Milgram experiment. Dr. Sah shares her own experience with a financial advisor and the pitfalls of conflict disclosure. The conversation also touches on the importance of conscious compliance, the power of the pause in decision-making, and practical strategies for resisting pressure in financial choices.
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ANECDOTE

Advisor Meeting That Sparked Research

  • Dr. Sunita Sah described meeting a handsome financial advisor at work who disclosed a commission after an hour of rapport-building.
  • The disclosure increased her pressure to comply rather than reduce trust, which spurred her research into compliance psychology.
INSIGHT

Why Disclosures Can Increase Compliance

  • Disclosure can backfire because rejecting advice signals distrust of the advisor and invites social anxiety.
  • Sah calls this 'insinuation anxiety,' which increases pressure to comply despite clear conflicts of interest.
INSIGHT

The Sales-Pitch Effect Explains Favoritism

  • The 'sales pitch effect' makes people feel they would be unhelpful by refusing someone who gains financially.
  • This social pressure often overrides personal best-interest calculations in the moment.
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