How Rational Was Your Holiday Spending?
The post-holiday season is a time when many people look back at the memories they made and the money they spent. According to behavioral economist Dan Ariely, many of the financial decisions made during this time, and throughout the year, are based on instincts or emotions rather than value.
Ariely argues that with the growth of popular technologies like taxi apps and mobile payments, people are also becoming increasingly distanced from the physical act of spending, which is often a helpful tool to keep unnecessary spending in check.
Host Frank Stasio speaks with Ariely, the James B. Duke professor of psychology and behavioral economics at Duke University and the founder of the Center for Advanced Hindsight. Ariely also answers listener questions about the rationality of financial decisions and talks about the new book he co-authored, “Dollars and Sense: How We Misthink Money and How To Spend Smarter” (Harper/ 2017).