Behavior Finance- Select one of the three:
1. Attention Anomalies
2. Mental Accounting
I am looking for media examples related to the topic. These may NOT necessarily relate to finance, but to other areas of human life as well. I still want to see a brief description of each of these events addressing the following questions
a) what happened?
b) who’s responsible?
c) how it can be fixed (if it can)? and what are the consequences?
Please select one, provide an example, and focus on those three points.
This is an example to help you understand what I am looking for.
Here is an example about Anchoring behavior:
During Thanksgiving while friends and family are enjoying their turkey and stuffing, electronic retail stores, such as Best Buy, are preparing their staff for â€œBlack Fridayâ€. Black friday is notorious for causing arguments and physical altercations during hours of operation. But how do these stores advertise their deals that seem to make everyone go crazy? Itâ€™s often done through ads on social media and newspapers. Anchoring can be seen in the buying patterns of consumers. When we see an item, like on black friday, thatâ€™s reduced from the original price we often think that it is a good deal and pull the trigger rather than weighing all options and making a smart decision. A great example of this can actually be given by myself. A few years ago, I made the decision to buy â€œBeats By Dreâ€ headphones during black friday. I thought I had a great deal because Best Buy advertised it as such. Later I realized that the headphones I purchased were not a deal at all and, instead, I actually paid more than some other stores. The main people responsible for anchoring tendencies are ourselves. We need to take information and process it slower rather than faster. This could help us save money in the short and long term. Businesses can also be to blame by making it hard to resist these deals however, they are a business and their main goal is to make money so I personally do not place much blame on them. The consequences to anchoring are mainly a loss of money and a feeling of stupidity.