MichaelAaron Flicker

Some are charged $13, slight discount.

And some are charged only $8 a ticket, a deep discount.

What's fascinating, they track the attendance at all the shows.

Those who pay full price attended 25% more shows than those that got the discounted, the deep discounted price.

So those that were invested, who paid the full amount of money, were more motivated to get their money's worth out of their subscription.

So fascinating to think about how when we sell things at discount, when brands go on sale, they might be driving up revenue in the moment, but they actually might be devaluing the experience with customers and they may have less coming back.

So it's always a balancing act.

How do we position our brand and our products to really improve people's perception?

And then in some places, how do we not send the wrong signal and get less usage and less repeat buyers?

So sunk cost fallacy works in a number of different ways.

I think it's so right the way you phrased the question, Rich, because a lot of times in business, you will find a rare individual in the organization that just seems to

get human psychology more than others.

They just have a sense of what's gonna activate the customer or what's gonna activate the buyer.

But a lot of times they're either a great strategist or they're a great creative person.

And they use that to make a promotion work or make a sale work or make a product work.

but they don't know why.

They have the insight, they have the reason to believe in this, but they're not really sure what's driving it.

So the practice of behavioral science, the reason I wrote the book was so that we can reveal these and understand the underlying reasons why this exists.

So this is a fascinating, one of my favorite stories in all of behavioral science, and it's called The Pratt Fall Effect.

And so this is a study in the 1960s.