#BehavioralEconomics

A groundbreaking study from the University of Bath’s School of Management has provided fresh insight into why individuals with higher IQs consistently make better decisions, linking superior intelligence to more accurate life predictions and improved outcomes. The research, recently published in the Journal of Personality and Social Psychology, demonstrates that cognitive ability not only affects academic and professional achievement, but also underpins day-to-day decision-making—from financial planning to health choices. For Thai readers, the study’s findings offer critical implications for education, public health communication, and social policy.

A new trend supported by the latest research in behavioral economics suggests that a simple 30-second daily routine—checking one’s bank balance each morning—could dramatically transform the way people relate to money. Experts argue this micro-habit does more than just foster awareness; it could serve as an essential tool for fraud protection, reducing stress, and turbocharging savings, marking a significant shift in personal finance driven by digital banking innovation (Journee Mondiale).

Southwest Airlines’ recent decision to end its iconic “bags fly free” policy in favor of $35 and $45 fees for checked bags has sparked controversy, demonstrating the high cost a brand can incur by ignoring fundamental consumer psychology, according to new analysis from Forbes. The abrupt policy shift, effective Wednesday, is anticipated to raise revenue by $1–1.5 billion but may cost the airline as much as $1.8 billion in lost market share, raising doubts about the long-term wisdom of the move (Forbes).

Imagine entering a Thai street market and seeing a beautifully woven silk scarf with a price tag of 2,000 baht. Even if you believe the actual value is lower, that first price sets a reference point. When the vendor offers you a “special price” of 1,200 baht, it feels like a bargain—regardless of the true worth of the scarf. This common negotiation scenario is a classic example of the “anchoring effect,” a psychological phenomenon that subtly but powerfully sways our decisions, often without us noticing.

Imagine being offered a bet: flip a coin, and if it lands heads, you win 1,000 baht—but if it lands tails, you lose 1,000 baht. Most people, in Thailand or around the world, would decline such an even-odds bet. This instinctive fear of losing—despite the potential to win an equal amount—is no accident. In fact, it is a well-documented psychological phenomenon known as “loss aversion”, which profoundly shapes human decision-making in daily life, finance, relationships, and even national policy.

Imagine paying for a concert ticket, then waking up on the day of the event feeling sick as a tropical downpour soaks the city. Logic suggests you should stay home—your health is at risk, and the rain will make everything miserable. Yet, you force yourself to go, reasoning that if you don’t, your 2,000 baht ticket will be wasted. This everyday scenario, familiar to many Thais balancing spending and social obligations, illustrates the psychological trap known as the “sunk cost fallacy.” It is a common bias that leads people to continue investing time, money, or effort into a decision even when doing so no longer serves their best interest, all because they want to justify past, irretrievable investments. In a society where respect for personal sacrifice and resourcefulness is highly valued, understanding this phenomenon carries deep significance for both individual Thais and the nation as a whole.

A new wave of research is shedding light on the subtle psychological techniques marketers use to influence our daily spending decisions—tactics so powerful that they can lead consumers to buy things they never truly wanted or needed. Drawing on the latest insights from psychology, this investigation reveals how neuromarketing manipulates perception, emotion, and judgment to shape shopping habits, with implications that extend deeply into the Thai retail landscape and the lives of local consumers.