Buy High, Sell Low

This may explain why the Dowbrigade sold his 19-year-old son down the
river for a song after Game 7 of the ALCS last October.

PITTSBURGH – Seemingly incidental emotions can influence the prices
at which individuals buy and sell goods, according to a groundbreaking
study by researchers at Carnegie Mellon University.

While prior research has found that people set a higher price for objects they
own than they themselves would be willing to pay – which economists call the
endowment effect – the Carnegie Mellon study found that people who are sad actually
are
willing to accept less money to sell something than they would pay for the same
object.
The researchers also found that when people experience disgust, both buying and
selling prices fall. This multidisciplinary study will be published in the May
edition of Psychological Science, the prestigious journal of the American Psychological
Society.

from Carnegie Mellon

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