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Reference points influence our choices from "summary" of Thinking, Fast and Slow by Daniel Kahneman
Our choices are often influenced by reference points that we use as benchmarks. These reference points can be anything from previous experiences to societal norms. When making decisions, we tend to compare our options to these reference points in order to evaluate their value. This comparison can significantly impact the choices we ultimately make. For example, if we are considering buying a new car, we might compare the price of different models to the cost of our current car. If the prices of the new cars are significantly higher than what we paid for our current car, we might feel hesitant to make the purchase. On the other hand, if the prices are similar or lower, we might be more inclined to buy a new car. Reference points can also...
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