tag:blogger.com,1999:blog-8880605103116805068.post151785226951553800..comments2023-02-28T03:28:58.663-08:00Comments on Prospect Theory: Penny for your ThoughtsJustin M. Cookhttp://www.blogger.com/profile/12634020113872985261noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8880605103116805068.post-26780782546573705912008-05-12T15:23:00.000-07:002008-05-12T15:23:00.000-07:00Haven't seen the original results on how they are ...Haven't seen the original results on how they are determining perceived value, but could there be a psychological component at play regarding the rarity of the SBA/$2 bills along these lines: Their novelty gives them status as collectable (whether someone actually collects them or not). This creates a perception of them being less liquid as there is a reluctance to use them, which equates to a perceived lower value in commerce.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8880605103116805068.post-62678272535439188562008-04-29T20:19:00.000-07:002008-04-29T20:19:00.000-07:00New thought – Frequency of exchange might be more ...New thought – Frequency of exchange might be more important than familiarity per say. I could be exposed $2 bills every day because a few of them are sitting on top of my desk but if I don’t frequently exchange them for goods and services their value may get murky on some psychological plane.Justin M. Cookhttps://www.blogger.com/profile/12634020113872985261noreply@blogger.comtag:blogger.com,1999:blog-8880605103116805068.post-12766204256744404272008-04-29T19:28:00.000-07:002008-04-29T19:28:00.000-07:00You probably have something here. This is similar...You probably have something here. This is similar to my "discounting the unfamiliar" thought. $2 bills, SBAs, and certainly doctored bills are suspect which would impact valuation. On the other hand, in my own experience I actually keep/collect $2 bills because they are rare/unique and (perhaps irrationally) may have HIGHER value like a stamp with an upside-down airplane ;-)Justin M. Cookhttps://www.blogger.com/profile/12634020113872985261noreply@blogger.comtag:blogger.com,1999:blog-8880605103116805068.post-1902153788081053192008-04-24T15:56:00.000-07:002008-04-24T15:56:00.000-07:00Justin, on a similar vein to your theory about dev...Justin, on a similar vein to your theory about devaluing the unfamiliar, it may be the case that subjects were prejudiced against items that they perceived as "obsolete". Most subjects probably are aware that SBA coins and two dollar bills are not produced anymore. Thus, those currencies may be being perceived as "faulty" or "recalled", or perhaps subjects are even engaging in some erroneous low-level reasoning about the time value of money ("This bill was worth $2 way back then / $2 buys a lot less today than it did then"). This explanation doesn't map well to the experiment with the fake bill, but that example could be caused by an entirely different (or only partially related) phenomenon. I'm skeptical that the results of an experiment asking people to reason about unfamiliar money are necessarily causally related to the results of an experiment asking people to reason about fake money. I haven't read the original, so I could be convinced.ryanhttps://www.blogger.com/profile/12451235734415738530noreply@blogger.com