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What a horrible experiment, too. You could conclude that wealthier people are more able to trust commitment over time. In a $100 context, I would be considere
by LanceH 7y ago
What a horrible experiment, too. You could conclude that wealthier people are more able to trust commitment over time. In a $100 context, I would be considered wealthy, but I still might take $100 now just because who knows where this guy will be a year from now. This is measuring time value of money versus risk, imo. Time value of money is also different for someone without money, as well. 100 Euro might buy a quality item now that will last, instead of a cheap version that needs to be replace multiple times in a year.
When I think of patience and building wealth, my first thought is always the college grads who get recruited from university and immediately go out and buy a really nice car. A lot of them even had perfectly functional cars going into their first jobs. In fact, several of them when to work for consulting firms where their nice new cars would be sitting at the airport parking lot 5 days out of every week. Put off that fancy car just a bit and then you can have that little nest egg which will kick off that patience<->wealth feedback loop.
- Bartweiss 7y ago> more able to trust commitment over time Not only are wealthier people better placed to trust (or risk) commitment, but the world map in the article is hilariously similar to a map of high-trust societies. If someone in Sweden is more willing to wait for money than someone in Russia, does that mean they're actually higher patience? Intuitively, I think it just means they have a higher expectation of actually getting paid in a year. (And if Nicaragua is bright red, how much of that is that people aren't even sure what address they'll have in a year, so even if they trust you they know they won't get paid?)