Re:The Story of a Lucky Economist
by cperciva on Sunday March 05, 2017 @06:02PM
(#13799400)
If you present people with several options, they'll be biased towards selecting options in the middle of the range. This is particularly relevant to SaaS startups and pricing plans; but in the article the author was using it to steer the decision maker towards the option he had already determined to be optimal.
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Re:The Story of a Lucky Economist
by AllegedWisdom on Monday March 06, 2017 @07:39AM
(#13802271)
The optimal cutoff would probably have been $20 million rather than the $10 million that was chosen, but that change would have been too much for a lot of people. If I had only presented options from $1M up to $20M, then the group probably would have chosen $5M no matter how much I argued for $20M. I had to put the $50M number in people's heads so $10M seemed less of a jump.
Re:The Story of a Lucky Economist
by southbridge on Tuesday March 07, 2017 @01:47PM
(#13813327)
Ya that's kind of what it seems like you did... throwing a big number out on purpose so that $9M jump would be "rational." The math in my head says you could weight figures on estimated acceptance probability. By throwing out a low probability figure first before a relatively higher probability acceptance figure - versus just presenting them with a reasonably high probability figure - give a better result. It is almost like expected value.
Re:The Story of a Lucky Economist
by southbridge on Monday March 06, 2017 @05:17AM
(#13801775)
So it's like suggestion; the ability to make people believe?