Category Archives: Behavioural economics

Harnessing the power of behavioural economics

Consider the following puzzle: A bat and ball cost £1.10. The bat costs one pound more than the ball. How much does the ball cost? The number that many people arrive at is 10p, dividing up £1.10 neatly into £1 and 10 pence. However, the correct answer is 5p (if the ball costs 10p then […]