Zero-Price Effect: Dan Ariely, the author of the book “Predictably irrational” describes the Zero-Price Effect:
We think that there’s no downside to “free.”
– Dan Ariely
This explains why people LOVE things that are for FREE.
Free money! Free standards! Free downloads!
However, he also reveals that loving free so much is not a rational choice, but rather because an irrational delusion.
Free seems so attractive, because we overlook the downsides.
Yes, free means that there is no visible upfront cost to it. After all, the price is zero. So we don’t need to pull out the wallet and make a payment to get access to whatever we want to have.
But the invoice comes later. The wake-up call comes with a delay. The invisible cost appear after the first rush of excitement has subsided.
Ariely claims that „Most transactions have an upside and a downside, but when something is FREE! we forget the downside. FREE! gives us such an emotional charge that we perceive what is being offered as immensely more valuable than it really is.“
Pirates are especially prone to falling for the Zero-Price Effect.
Now, being a pirate or not, what can we do to avoid falling victim to the Zero-Price Effect? After all, we are better off if we are not affected by delusions, right?
One answer would be to keep in mind what the dowsides are.
- Hidden cost
- Hidden risk
- Opportunity cost
What exactly are hidden cost, hidden risk and opportunity cost of piracy?
Read this post to learn more about hidden cost.
Click here to explore the hidden risk of piracy.
Check out this post to learn more about opportunity cost that pirates pay, even if they get things „for free“.
Please don’t get me wrong.
When you are reading this post, chances are you are human. And being a human means to have flaws and imperfections. Those make you relatable. They make you… well… human. So don’t be discouraged to learn that you have been falling for some psychological effect that some famous guy has written a book about. This is not to make you feel bad about yourself.
The point of this post is to make you aware and to invite you to reflect on something that affects you, triggers you and manipulates you. Even if you have fallen for it in the past, so what. It’s not your fault.
But use it as an opportunity to improve yourself.
Do it when it is the right time for you. Do it when you are ready for it. Good luck!