Our Irrational Brains
For years people who studied behavioural psychology believed that most of the decisions we make are rational ones. It came as a big shock when they discovered that investors aren’t rational. Yup, we can be pretty stupid sometimes.
Then they discovered that irrational behaviour also applies to our shopping. Really? What a surprise!
In a study conducted at Stanford University, and reported in Neuron journal, people’s brains were scanned as they looked at desirable goods and their prices, and the most active brain areas were recorded. The result: while distinct parts of the brain anticipate having the item, others register the impact of having to part with money.
It seems our nucleus accumbens, which is full of dopamine receptors and so is a pleasure centre, lights up when we want something. So the nucleus accumbens lights the fire of want. Our insula (associated with pain) is activated by prices that seem too high. So it’s like the sprinkler system putting out the fire. Yes, there is an actual physicality to the trade-off between really wanting something, and having to pay for it.
Here’s the thing: If you have an overactive nucleus accumbens or a lazy insula that could be the reason why you’re a chronic shopper. Or it could simply be that your brain is being tricked into acting in a foolhardy way.
Let’s take the credit card as an example. If you don’t feel the pain of actually having to part with cash, or do without something else, because you can just charge it, then your insula won’t douse the great feeling you get from your nucleus accumbens when you think about acquiring that new dress or those new tools. And if the retailer or salesperson can convince you you’re getting a deal, your insula won’t rain on your parade and stop you from spending.
Now, if they could come up with a credit card that reminded you of your outstanding balance every time you pulled it out of your wallet, that’d be the ticket. Think anybody’s working on that sucker?
April 1st, 2008 at 5:52 pm
That makes perfect sense. It would also explain the agony of buyer’s remorse. I get a seriously gut-wrentching sensation when the TOTAL pops up on the cash register. I feel genuinely ill when it’s an impulse buy. So it’s a good thing I don’t do that often!