I’ve recently listened to Dan Auriely’s Predictably Irrational. Among many interesting things, I’ve learned from it, the one that I would like to discuss with you is (i’m paraphrasing):
Every Man/Woman lives in two different lives simultaneously, 1) Social Life, 2) Market Life. What you do with your friends and family, comes under social norms, and, what you do with your clients, office mates, customers, comes under market norms. For example, if you help your friends/family build a company, most of the time you may giveaway a small amount of money, or give some money as loan, this happens because you are operating in social norms. But, when you talk with investors, both parties are interested in the best possible outcome for themselves. Invester may want equity. A price tag can be attached on everything, because you are operating in Market Norms.





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