7 Psychological Effects That Rule Your Whole Life

7 Psychological Effects That Rule Your Whole Life

Did you know you could sell a $20 bill for
ten times its value? Or that a person you’re physically attracted to may not be as smart
and funny as you think? These things are called cognitive biases, and they rule your entire
life without you even knowing it. Here are some of the most prominent ones, starting
with… #7. Phenomenon of Max Bazerman
How hard could it be to take 20 bucks from an MBA student? In fact, Professor Max Bazerman
proves it’s easy-peasy. In 2010, he first conducted an experiment at his class where
he organized a simple auction: he would give a $20 bill to the student who pays the most
money for it. The bidding started at $1. The only rules of the auction were that bids could
only go up by $1 (no less, no more) and that the second best bidder would pay the whole
sum of their bid to the professor. So, let’s say the best bid was $18, then the second
best would be $17. The one who paid $18 would receive the auctioned bill and win 2 bucks,
while the one who bid $17 would just pay the money and receive nothing. Simple, right?
Well… At first, the auction went as planned, but
the stakes rose pretty fast, and soon the bids reached the nominal value of $20. A pause
ensued, and then… someone bid $21. Students started laughing at that, but surprisingly,
the bidding didn’t stop. The auction, which turned basically to farce at this point, continued
until the students finally had enough. The $20 bill was sold for $204. The overall sum
the professor won totaled $387. As Bazerman explained after the end of the
auction, it was the typical picture for any business person. He conducted the same experiment
with CEOs of major companies and still managed to sell the 20 bucks above their face value.
It all boils down to the fact that nobody wants to be the second bidder and lose money
without winning anything back. So the auction continues until someone sees the fallacy and
decides to stop the race. Sometimes, as you can see, it happens much too late. #6. Decoy effect
Let’s say you’re at an electronics store, choosing a new SD card for your camera. You
see two options before you: one has the capacity of 64 GB and costs $15, and the other has
the storage space of 128 GB, but costs $30. There’s an equal chance of you choosing
either of them — some will prefer greater capacity, while others will go for lower price.
Which one would you choose, by the way? Let me know down in the comments!
Okay, and now a third option appears. This SD card has the capacity of 96 GB, which is
higher than the first but lower than the second. But its price is higher than both: it’s
$35. This third option is called a “decoy,” and its role is to make the pricier second
SD card more favorable in the eyes of the consumers.
Indeed, when you look at all three options, you actually consider only the first two,
because the third one is worse than either of them. Still, you now look at the 128 GB
card from another angle: it’s cheaper than the 96 GB one and has more storage space,
making it better in all respects. The 64 GB card, though, is only cheaper than the 96
GB one, but its capacity is lower. It’s kinda obvious that you would choose the best
one, right? Well, marketing specialists got you there. The only reason why there’s this
third option on the market is to create this decoy to make you buy a more expensive product.
Insidious. #5. Halo effect
Enough talk about money, let’s switch to other concerns. Ever thought how in movies
and cartoons good characters are often depicted as beautiful and attractive to the eye, while
evil “baddies” usually have some repugnant features, like crooked teeth, warts or something
like that? This is how our perception of good and bad personality is shaped. You may not
notice this, but when you see an attractive person, you tend to exaggerate their good
traits of character. And that’s the gist of the halo effect.
But there’s more to it than that: it’s not only about the physical features, but
the overall impression a person makes. If he or she is nice and charming, we often extend
these qualities to everything there is to that person, and our mind draws them as also
smart, funny, and witty. Now that I know this, I’ll probably trust my judgment of people
a bit less. Ah well… #4. Framing effect
Imagine you’re presented with a choice of two medical treatments for some disease — let’s
not go into particulars here. The package insert for the first one says it has 80% effectiveness
against the disease, while the second one is described as having 20% chance of failure.
If you look closely at both of them, you’ll easily see that they’re very similar. Like,
the same even! But according to statistics, the vast majority of people would choose the
first treatment over the second. This is what the framing effect is about:
we tend to prefer an option that is described in a positive way. Even if the only other
option is absolutely the same, people will likely disregard it because it’s been given
a negative description. Remember the 20% chance of failure? That’s it. And the effect actually
applies to anything. Politicians and marketing specialists alike use it a lot in their campaigns.
So pay attention to the deeper sense, not the words that frame it. #3. Illusion of control
This cognitive bias is probably one that describes human nature the best. Tell me first, when
is there a higher chance of getting into a road accident: when you’re driving a car
or when someone else is at the wheel and you’re just a passenger? Sound off in the comments!
I’ll tell you what the statisticians say about it in a minute.
In the meantime, hear this: Professor Ellen Langer conducted several studies to research
the perceived control over a situation. One of them involved a lottery. Her subjects were
either given tickets at random or got to choose their own. None of them knew the winning combinations,
so they couldn’t possibly know which tickets would have a higher chance of payoff. Still,
the participants were allowed to exchange their tickets to try and win more money.
As a result, Professor Langer saw that people who chose their own tickets were more reluctant
to part with them. Also, the tickets with familiar symbols were less often traded than
ones bearing different, unfamiliar signs. On top of that, even if the odds were better,
subjects with tickets they had chosen themselves were less likely to trade them. This shows
that, although the situation is completely random, people tend to think their choice
somehow affects the results. We like to be in control of everything, don’t we?
Well, I promised to tell you the statistics for a car accident, so here it is: the vast
majority of drivers think that the chances of them getting into one are much lower if
they’re driving than if they’re riding as passengers. Such confidence, that! Was
it true for you too? Give me a like if it was! #2. Dr. Fox effect
Don’t get confused by the name — it’s not after any doctor. In fact, quite the opposite.
The experiment that gave this effect its name was conducted in 1970, when two speakers gave
lectures to an audience of trained psychiatrists and psychologists. The topic was chosen specifically
so that none of the trainees knew anything about it, for the experiment to be valid.
The catch was that one of the lecturers was a real scientist, while the other was an actor,
Michael Fox, under the alias of Dr. Myron L. Fox, an Albert Einstein College of Medicine
graduate. When both the actual scientist and the actor gave the lecture in a monotonous
manner, the students gave better feedback to the real lecturer and performed better
on the test. But when they were both asked to present the material in a more lively way,
joking and engaging the audience, Dr. Fox was rated as highly as the actual professor.
Moreover, the lecture was deliberately full of doubletalk, contradictory statements, and
downright nonsense, but despite all that the students spoke very highly of Dr. Fox’s
professionalism. And that’s what’s so disturbing about the whole effect: the positive
attitude and liveliness of the actor completely fooled a whole audience of highly educated
specialists. If you ever heard motivational speakers and got inspired by their ideas…
well, chances are that you’ve also experienced the Dr. Fox effect. Congrats! #1. Spotlight effect
If you’ve ever felt self-conscious leaving your house in different socks, worrying that
everyone would laugh and point fingers at you, you’ve become a victim of the spotlight
effect. It’s a psychological bias that basically makes you think too much of yourself.
You’re the center of your own world, that’s for sure. No one lives your life for you,
and that’s why you notice every little detail in yourself. And you naturally tend to think
that everyone else will also see that strange new mole on your forearm or that your nails
aren’t properly manicured. But let’s be honest: how often do you notice such tiny
things in others? My guess is almost never. That’s because everyone’s too concerned
with themselves to pay much attention to other people.
But don’t get all upset about this: it’s a widely common effect. Just try not to think
too much of your own importance in the life of complete strangers. Which of these effects have you experienced
on your own? Let me know down in the comments! If you learned something new today, then give
this video a like and share it with a friend. But – hey! – don’t go anywhere just
yet! We have over 2,000 cool videos for you to check out. All you have to do is pick the
left or right video, click on it, and enjoy! Stay on the Bright Side of life!

100 thoughts on “7 Psychological Effects That Rule Your Whole Life

  1. Hey there, BrightSiders, do you judge people by their looks or try to learn something about them before making conclusions?

  2. The first part almost 👎 I unsubscribed while back had extremely bogus info. Basic knowledge an common sense first half of this so so vid I'm still watching we will see if you would've got into the palcebo effect would've been choice how color of the pill the percentage (like what was said here) or placebo and and Zoloft have exact success rate it pretty much sums it all up

  3. Regarding the spotlight effect: I just can't see it as an illusion. People do observe me constantly everywhere and the braver kinds do start to talk to me on the street to mention their opinions about my looks. Not most of them, but every day there are quite a few who express their opinions in a verbal or non-verbal way. From my perspective I do observe everyone around myself on the street, on the bus, on the tube, even if that means hundreds of people on a regular morning during my journey to work – so if I behave like a regular person, that would mean that everyone would be in the middle of the spotlight. I simply don't feel the Spotlight to be an "effect", in fact I believe it's much more real compared to how I think about it.

  4. 96GB card would be more expensive becuase it goes 32 64 128 never 96 or 13 gb if was could sell it for lots since i t so rare.

  5. First I would buy the SD card I required. Nit more or less. If I had unlimited resources I buy the one cheapest by the cost of gigabit in each one.

  6. I used to work for a high end Verizon store that was using all the crazy sales traps , and tactics down to every last detail and presentation. Let them open that door for you and "save you money"

  7. I'm poor so I,would get the lower one but before he said it and I know he will the one on the right will be better because you only pay 2x the price and get more than 2x the space also though you would have to take into account several different things like how old is your camera and do you use the camera a lot

  8. That’s why it always amazes me when so called “beautiful” people get divorced, and everyone says “why would she/he divorce him/her!!”. Complete shock. Being pretty doesn’t make you interesting, fun to be around, or anything!🤷‍♀️. Which kind of goes to number one. A lot of Good looking people suffer from this BADLY.

  9. My job is to sit in the passages seat so I would Day I’m more likely to get in a crash at work then in my car because I only get to drive it during the summer and weekends

  10. I'd guess that theres a better chance of me being in an accident if I'm the passenger. This is because if I'm a passenger then there are 2 or more people in the car guaranteed, increasing the chance for distractions and thus accidents.

    If I'm the driver theres a fair chance I'm driving alone and no one else in the vehicle to distract the driver

  11. You can't sell a 20$ bill you can buy things then sell those things for more you payed it's how every single person on this earth makes their dirty $

  12. LOL, with respect to the spotlight effect, yes, I do notice little things people don't notice about themselves (this is why I don't like to focus my gaze too much on other people. It's rude to stare right?), and for this reason, I am more conscious of my own appearance and behavior. However, after watching this video, I am comforted by the knowledge that most people are so busy worrying about things related to themselves they don't likely notice my slip-ups. Nice one Bright Side, I can now stop worrying about crinkled dresses and stray hairs!

  13. Decoy is for idiots. You buy what you need with the money you have. And in the end, divide GB with dollars to see how much is it per GB and then decide. The brand also plays a part as better ranked brands usually make better products. Its not a rule, just something people are used to. If all you need is a 64gb sd, you check the prices but also brands and other things. Decoy is not used for the last couple of years as the market has crossed to internet. Now they use benefits as 24h delivery, monthly payments with no interest or gifts if you order something right now. Example: Buy this Xperia 1 today for 800 and it will be at your adress in 3 days or buy this Xiaomi for 900 and you will get these headphones and wireless charger at no extra cost and it will be at you adress in 24 hours? Which do you chose? Or this example: This product has been sold 275 times today, only 25 remaining. You get the feeling that even if you dont know much about this product, other people are buying it. So it must be good? From the start you believe that other people are really buying it because why? Because the website selling it said that? Why are you giving it credibility when its a business. They are in for a profit, not you satisfaction. Ads only work on people who want to believe they live in a good world where other people care.

  14. When it came to the SDcards my 1st go to was to buy 1 of the expensive ones and then 1 of the cheap ones. It actually becomes the better deal, 45$ for a total of 192GB of storage.

  15. Great video, makes me glad that I think critically. I avoid all these biases and every other one in my daily life already.

  16. I continue to support these videos. I never comment but I’m really benefiting from Bright Side advice. TRUST this advice! Putting together my personal story of success from following these videos. My first video will show my true footage! Thank you ⚓️♥️

  17. BRIGHT SIDE, why are you a comments fan? Seems to be like a ridiculous trend – ask for comments and don't answer the all of them. Much of youtubers getting sick by this strange trend. They ask for comments, but some of them don't answer to the comments at all. What's going on?

  18. To be honest, for myself , my thought of flaws on people, just dont care to notice flaws on purpose, figure they already know about them and its normal cause all us has them. So, no its not because being to concerned for myself..in fact, just dont care very much, what others think of me on the norm, as per my looks. Feel the same way about others..not into their looks unless they smell really bad or have layers of filth hanging off them.

  19. its more that if you chose your lottery ticket and you swapped with someone but your ticket won, you will kick yourself because you chose the numbers already, but if it was random, you stand by the decision you traded your ticket.

  20. I was running for the vice president of our school so I and my team got to all the classrooms and gave a speech I just maked them laugh out loud said some jokes and said sa lies😅 at the end I won. I think this is the Dr. Fox effect.

  21. Hahaha some actually buy the decoy SD card because they think that the more expensive it is, the better it performs.

  22. I didn't guess that. I guessed that chances to get into an accident is HIGHER if you are driving your car. If someone else is driving your car, they will be going out of their way not to get into a wreck, it's not their car.

  23. Let's play a game I will give you a deal

    Instead of giving you one cookie for one comment

    I will give you a cookie for two comments and an extra free cookie

  24. I've been driving for 34 years and I've never been at fault in a car accident. I think it's too much of a stretch to say that I am safer in most situations if I am the one driving.

  25. What if I told you I bought a 32 GB SD card today and only bought it because the device I was buying it for only took up for 32 GB SD card storage and the stores minimum storage being sold was 32 GB lol

  26. I have a higher chance of getting into a road accident between the hours of 2-4 am. When the bars close and the drunks drive home.
    Has nothing to do whether I am driving or someone else.

  27. Always thought provoking.

    When determining which item size is the best deal, look at unit price. Sometimes buying a larger size will cost us less per unit, other times they know we'll assume the larger sizes are the better deal, so will charge more than double the cost but have fewer than double the units.

    They count on us not wanting to take the time to do the very basic math.

    " Buyer Beware!"

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