Jonah sets up a baby registry to help Amy afford some of the things she’ll need for her newborn. Her coworkers are mad they weren’t invited to the fake baby shower, so the store throws Amy (and others) a baby shower. After getting through the gift portion, Amy thanks everyone for the gifts, but notes that some of the gifts she received were garbage. Only the car seat was a gift that she actually wanted and was the purpose of setting up the baby registry. Gift giving is often considered inefficient because people don’t fully know what the other person’s willingness to pay is for an item. Had Amy been given cash, she could have purchased items that she valued.
Tag: behavioral
Jerusha and Glenn are over for a party that Amy is hosting and Jerusha takes the time to console Amy on her recent divorce. Jerusha actually points out the sunk cost fallacy and praises Amy for her divorce since it’s better than staying in a marriage that doesn’t make you happy. A classic sunk cost fallacy example is often relationships where one party is unwilling to break up the relationship because of the amount of time they have spent together.
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Voting to Fire Coworkers
Glenn needs to fire 6 employees before the end of the day, and he decides to let the employees vote who they want to see terminated. Their voting method appears to be based on a majority rules system.
A customer is having trouble identifying a new toothbrush to help with his tartar problem. With all the options available, some companies advertise as being good at fighting plaque while others focus on tartar prevention. When consumers have a lot of options, it’s sometimes hard to fully consider the tradeoffs. This paradox of choice can explain why some people don’t behave rationally when presented with a seemingly overwhelming number of options.
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The Cost of Healthcare
After a coworker comes down with an ear infection, the team members decide to try and raise money to help cover the costs of medicine. Jonah decides to come up with a group health plan where each member donates money from their check and then covers the medical costs of store members whenever the become sick. Amy sarcastically points out that this is basically what health insurance is meant to do.
Glenn wanted to see Saw because he thought it was about carpentry, but he quickly realized it was a horror movie. He wasn’t having a good time and even threw up in his lap, but his wife didn’t want to leave because they paid for the ticket and it was date night. Glenn and his wife should have left if they weren’t enjoying their movie since the tickets were non-refundable, but like many people, Glenn and his wife fell for the sunk cost fallacy.
Teaching with Superstore 