On average, people would rather make less if their peers earned less over being paid more if their peers make more. Which of the following Annoying Features fits best?1 pointAnnoying Feature #1 - our minds’ strongest intuitions are often totally wrongAnnoying Feature #2 - our minds don’t think in terms of absolutes; our minds judge to relative reference pointsAnnoying Feature #3 - our minds are built to get used to stuffAnnoying Feature #4 - we don’t realize that our minds are built to get used to stuff
Question
On average, people would rather make less if their peers earned less over being paid more if their peers make more. Which of the following Annoying Features fits best?1 pointAnnoying Feature #1 - our minds’ strongest intuitions are often totally wrongAnnoying Feature #2 - our minds don’t think in terms of absolutes; our minds judge to relative reference pointsAnnoying Feature #3 - our minds are built to get used to stuffAnnoying Feature #4 - we don’t realize that our minds are built to get used to stuff
Solution
The best fitting Annoying Feature for this scenario is Annoying Feature #2 - our minds don’t think in terms of absolutes; our minds judge to relative reference points. This is because the scenario is about people preferring to earn less if their peers also earn less, rather than earning more if their peers earn more. This shows that people are comparing their earnings to a relative reference point (their peers' earnings), rather than considering their earnings in absolute terms.
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