James Kwak has a good posting on behavioral economics and irrational behavior that has led me to conclude I should probably invest in some warmer clothing. Possibly mittens. Here’s part: In your personal life, you should be aware of anchoring, because it can help you use your money more wisely. For example, for several years I would complain about being cold in the winter in New England. I was coldest when I was walking my dog, because then I had to be outside for half an hour at the time, and my hands were one of the coldest parts of my body. Finally I asked my wife to buy me the warmest mittens she could find for Christmas, and since then my
Mittens or Dinner?
