BIAS OF THE WEEK

Projection Bias

When buying a car, we have to predict the future utility it will bring us in the future.

But something as simple as the weather can bias our predictions.

Studies found that convertible sales spike in warmer seasons and so do 4×4 cars in colder seasons.

We tend to overestimate how much our current preferences will remain the same in the future.

See the full study here :

Busse, D.Pope, J.Pope & Silva-Risso (2015). The Psychological Effect of Weather on Car Purchases.

Want to know more about biases?

Groupthink

Mere-Exposure Effect

Bandwagon Effect

Scarcity effect