As a frequent flyer, I know how easy it can be to get caught up in a loyalty program. You could blame it on the occasional first class upgrades, the free checked baggage, or the special elite hotline many airlines offer their most valued members . . . or you could chalk it up to a brilliant application of behavioral economics and psychology.
Behavioral economics evolved as some economists began to probe why people aren’t actually rational economic actors–why they make decisions that go against logic and their own best interests. One of the answers is that our brains operate with two systems, the hot and the cold (or, if you prefer, Systems 2 and 1). Continue reading Emotions and the Choice Funnel