The Economists Who Studied All-You-Can-Eat Buffets:
New research shows that paying that much for a buffet might actually make the food taste better. Three researchers did an all you can eat (AYCE) buffet field experiment to test whether the cost of an AYCE buffet affected how much diners enjoyed it. They conducted their research at an Italian AYCE buffet in New York, and over the course of two weeks 139 participants were either offered a flier for $8 buffet or a $4 buffet (both had the same food). Those who paid $8 rated the pizza 11 percent tastier than those who paid $4. Moreover, the latter group suffered from greater diminishing returns—each additional slice of pizza tasted worse than that of the $8 group.
Behavioral economics is so interesting. I was first drawn to it through Dan Ariely’s book, Predictably Irrational.
We like to believe we make decisions based on reason and logic, but so much of what we do is based on emotions and perceptions.