Behavioral psychologists have come across a fascinating understanding of the human mind. We have an extraordinary loss aversion. One that is significantly higher than our desire to gain. What does this mean? We value things we have way more than the item if not in our possession.
Gamblers have been using this strategy for years to try and figure out how this human irrationality influences betting lines in major sports games, and betting against them. Now, certain Speed Sale Websites are trying to take advantage of this understanding to improve their online sales.
How? They’re giving customers just seconds to decide on discounted items – or lose the price forever. An item comes on the screen and you have four seconds to decide whether you want to buy it. This might be the next eBay – with a competitive aspect that pushes online valuations higher than they should. It’s genius.