Market and social norms experiment
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Transcript of Market and social norms experiment
![Page 1: Market and social norms experiment](https://reader036.fdocuments.in/reader036/viewer/2022082705/55b1c24bbb61eb7a678b45fd/html5/thumbnails/1.jpg)
The Psychology of Money
BONDBONDBONDBONDlau
![Page 2: Market and social norms experiment](https://reader036.fdocuments.in/reader036/viewer/2022082705/55b1c24bbb61eb7a678b45fd/html5/thumbnails/2.jpg)
Market and Social Norms
1.Borrow two of my friends and my brothers phone charger for 5 dollars.
2.Next day borrow them for free.
This was a failed experiment because they all agreed to be paid but then also agreed to o it for free
![Page 3: Market and social norms experiment](https://reader036.fdocuments.in/reader036/viewer/2022082705/55b1c24bbb61eb7a678b45fd/html5/thumbnails/3.jpg)
Price of FreeI had two chocolate bars with me, one of cheap quality and small size, one of high quality and large size. I priced the small one at $8, and the high quality one at $12. I asked my friends which they would buy, and they said they wanted the high quality one.
However, when I made the low quality bar free, and decreased the price of the high quality one to $5, they wanted the low quality bar instead.
The theory worked for my friends, and it would work on me as well, because who wouldn’t want things for free?
![Page 4: Market and social norms experiment](https://reader036.fdocuments.in/reader036/viewer/2022082705/55b1c24bbb61eb7a678b45fd/html5/thumbnails/4.jpg)
Micro PaymentsWe asked three people if they would rather pay for a VLT once every time they bought it or get subscription and get one everyday. Most people opted for the subscription. We didn’t give them the VLT though :D