Deal Or No Deal

Speaking from an academic standpoint, the show is absolutely fascinating. There was a story on NPR this week on how economists from around the world have been studying this show since it finally gives them a perfect idea of how people will perform outside of a lab situation. In their previous labs, the prizes would be like $10, and no one worries about losing that much money, so they take a higher risk.

They basically found that when a person does good at the beginning, they will be more careful near the end (more likely to take the deal) and when a person loses a lot of the big money at the beginning, they are more likely to throw caution to the wind later on even if the banker gives them a good deal for what is left on the board.

How ya doing, buddy?