Have you ever just ripped a Band-Aid off so that you wouldn’t have to feel a long agonizing pain? Or maybe you prefer bundling items so that you only have to pay for them once? I’m sure that you’ve probably done one, or the other, or something similar. These are all examples of Dan Ariely’s “Pain of Paying.” Basically, Ariely describes “the pain of paying” as, “magnified when our feeling about spending money are coupled with consumption” (1:15). So, essentially he explains that one would be more joy in the activity by putting off paying for it. In most cases, I would agree with him. He has great examples like filling up once at a gas station, prepaying/paying for a trip in advance, paying for air conditioning, etc. These are great
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Otherwise, businesses will capitalize on it. Typically, people will pay more items because they are not worried about the costs. For example, Lindsay Konsko, from Nerd Wallet, states that “people spend 12-18% more when using credit cards instead of cash. McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash,” (Konsko 1). So people spend more money and businesses will continue to capitalize on it. The other thing that businesses have done is that they add interest whenever the individual cannot pay them back, this is how so many people gain so much …show more content…
So, in this case, Ariely’s theory doesn’t pay off (literally) because our government just kept adding debt (with very little to show for it), we will have a massive negative effect as we have to pay each one of those back, where it practically created few positive experiences. Not to mention, that won’t simply be a simple one-time experience because the government will rather have to make gradual increases in taxes, or pay back the amount and make the majority of the citizens go bankrupt. So really, this idea of not having to spend the money until later is true only if the individual keeps track of the money. However, if the person doesn’t keep good tabs on the funds that are available, the individual could be in for a major pain session, which could end up extending longer than just the one bill because they have no way of paying for it. In some respect, Dan Ariely’s “Pain of Paying” goes in some situations, but if the individual isn’t careful, this could lead to a long time of having to pay off the debt, creating a bigger pain, than if they simply just paid the bill with
Otherwise, businesses will capitalize on it. Typically, people will pay more items because they are not worried about the costs. For example, Lindsay Konsko, from Nerd Wallet, states that “people spend 12-18% more when using credit cards instead of cash. McDonald’s reports its average ticket is $7 when people use credit cards versus $4.50 for cash,” (Konsko 1). So people spend more money and businesses will continue to capitalize on it. The other thing that businesses have done is that they add interest whenever the individual cannot pay them back, this is how so many people gain so much …show more content…
So, in this case, Ariely’s theory doesn’t pay off (literally) because our government just kept adding debt (with very little to show for it), we will have a massive negative effect as we have to pay each one of those back, where it practically created few positive experiences. Not to mention, that won’t simply be a simple one-time experience because the government will rather have to make gradual increases in taxes, or pay back the amount and make the majority of the citizens go bankrupt. So really, this idea of not having to spend the money until later is true only if the individual keeps track of the money. However, if the person doesn’t keep good tabs on the funds that are available, the individual could be in for a major pain session, which could end up extending longer than just the one bill because they have no way of paying for it. In some respect, Dan Ariely’s “Pain of Paying” goes in some situations, but if the individual isn’t careful, this could lead to a long time of having to pay off the debt, creating a bigger pain, than if they simply just paid the bill with