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The neuroscience of Costco

Jonah Lehrer on what our brains are up to when we’re shopping at Costco.

As I note in How We Decide, this data directly contradicts the rational models of microeconomics. Consumers aren’t always driven by careful considerations of price and expected utility. We don’t look at the electric grill or box of chocolates and perform an explicit cost-benefit analysis. Instead, we outsource much of this calculation to our emotional brain, and rely on relative amounts of pleasure versus pain to tell us what to purchase.