We compare everything to a reference point from "summary" of Predictably Irrational, Revised by Dan Ariely
Our minds are constantly making comparisons. When we encounter something new, our brain automatically starts looking for a reference point to compare it to. This comparison helps us make sense of the world around us and determine how we feel about certain things. These reference points can come from various sources - past experiences, expectations, social norms, or even arbitrary numbers. For example, when we see a price tag, we immediately compare it to our internal reference point for that particular item. If the price is lower than what we expected, we feel like we're getting a good deal. But if it's higher, we might feel like we're being ripped off. Reference points can also affect our perception of value. In one study, participants were asked to taste two glasses of wine - one labeled as a cheap bottle and the other as an exp...
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