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I actually made a personal economic decision that was driven by a behavioral bias within the last month. Although neither choice would have been detrimental to my bank account, I wish I would have taken a step back and looked at the bigger picture prior to my purchase. It started because I left my 60-degree wedge behind after putting at a hole on the golf course. With this wedge being an essential part of the game, in my opinion, I decided I needed to purchase a new one. Being a college student, and not having a job at this time, I felt that I should just find the cheapest wedge on the market and it will be “good enough”. I had fallen face first into the satisficing behavioral bias. “Satisficing: the idea that we make “good-enough” decisions, rather than rational ones” (The Psy-Fi Blog, n.d.). I figured that they are all clubs, and they all do the same thing, why spend $100 on a club when I could get one for $30. Well, this mindset was terrible and showed my inexperience in purchasing golf clubs. I was more worried about saving money than the performance, durability, and quality of the product itself. This replacement club ended up being much worse than the club that had come with my original golf set. It was a noticeable difference and regrettable purchase almost instantly. Now I know everyone has their good and bad days at the course, so I kept that in mind and played around with the club a few times on a course and at a driving range. The quality and performance just never matched that of the lost club.
Not only did the understanding of behavioral economics come into play, but a little bit of common sense and research would have changed my decision today. Simply by reading the reviews on Amazon, I would have discovered that his club is not reliable, inefficient, and overall bad quality. Furthermore, the reviews do say the club is about as good as it is priced at. I should have used rationale to see that the price of the club is probably fairly low, because the quality and performance it exhibits is pretty low. If it were today, I would have sat back and weighed my options, did quantitative research, and probably selected a 60-degree wedge that was more “bang for its buck”. This economic decision may not seem drastic to must, nor would it cripple my account, but due to my current financial situation I choose the cheaper avenue. Had I placed my ego aside, I probably would have just purchased a more expensive club as it would bring better performance, quality, and longevity.
The Big List of Behavioral Biases [Web log post]. (n.d.). Retrieved January 28, 2021, from http://www.psyfitec.com/p/the-big-list-of-behavioral-biases.html