Behavioral economics show that men tend to take more financial risks and hold losing stocks longer.
It’s happy hour at Hanaro in Bethesda, and I’m with my wife. We’re there about an hour, gobbling plates of half-price tuna rolls and washing them down with $3.50 Blue Moons. Have to hurry, happy hour ends soon. My wife slows down and cautions me to do the same. I don’t listen. Keep ’em coming, right up to 7 o’clock. Then I get the bill: $75. Yikes, how did that happen? I thought this stuff was half price! Call this stupid male tricks — or behavioral economics.
Behavioral economics tries to figure out why people consistently make irrational financial decisions — like paying $75 to jam 15 orders of sushi down your throat in an hour. The bar happy hour embodies two classic ploys that cause irrational choices: scarcity, get it now before it’s gone; and the idea of getting something for nothing, buy two pairs, get the third free. (You needed that third pair of Birkenstocks?)