Showing posts from January, 2016

Friendly Reminder: Consumers Aren’t Rational

Well, it's over. Powerball madness has ended. Three winning tickets will split the $1.6 billion and we can all go back to our daily lives. This was a good reminder, though, that people aren't rational. If we were, we wouldn't buy Powerball tickets. With the odds of winning at 1 in 292 million, even with 100 tickets, your chances are still basically zero. As I was irrationally standing in line to buy my Powerball ticket, the cashier told me that earlier someone had bought 500 tickets (for $1,000) after selling his car and using all the money to buy lottery tickets. We now know that he didn't win the jackpot or $1 million. If that's not irrational, I don't know what is. Life can get back to normal now. Until we get swept up with the next irrational thing. I can't wait. There's never a lack of ideas. PS. My Powerball ticket is pictured here. We won $4! By spending $10....