What is worth more, a euro or a hundred cents? Although mathematically the answer is obvious,our brain acts as if the value of a hundred cents is greater, according to a new study published in the journalPsychological Science. In other words, humanswe pay more attention to the size of the numbers than to the real economic value of the quantities.
To reach this conclusion, John Opfer and Ellen Furlong of the University of Ohio turned to the well-knownprisoner’s dilemma, using the dollar as currency. Distributed in pairs, the participants had to decide separately if they wanted to cooperate with their partner or act individually in exchange for a financial reward. If the two of them collaborated, they each received three dollars. If one decided to go it alone, it was done with five dollars and the other took nothing. In case the two refused to cooperate, they only got a dollar a head.
Previous research had shown thatpeople help each other more if the amounts at stake are high. Indeed, the interest to cooperate was greater if 300 dollars were offered instead of three. But the surprising thing is that if half of the participants the reward was offered in cents (300) and the other half in dollars (three), those who gambled 300 cents collaborated more. Furthermore, the levels of cooperation were similar between those participating for $ 300 and those participating for 300 cents. “The only thing that matters is whether you are playing for a “3” or a “300”.“says Opfer.” The numbers confuse us, “he adds.
According to the researcher, when an individual decides whethersave moneyfor the future or try to assess the risk of ainvestment, your decision is conditioned by the size of the numbers. “For better or for worse, reconsidering our options in terms of small numbers allows us to better see relative risks and benefits than large numbers,” Opfer concludes.
