When The Chips Are Down...

Last night I played poker. Not for money, just pride. I actually did quite well (cue comments about behavioural economists being able to read people - not actually true; I just got lucky!)

But I was, sadly, irrational.

When I bet my chips, I preferred to bet the smaller chips in larger quantities than the larger chips. For example, I'd bet two 500 chips rather than one 1000 chip. Not only this, but I felt more carefree when I had lots of smaller chips. I would bet on things that I definitely wouldn't have done had I had to get change from a large chip.

I sometimes refused to make bets because it would mean sacrificing a sacred 1000 chip, whereas if I had ten 100 chips I would have bet. Irrational. 

In other words, I changed my behaviour based on trivial things. Trivial things that economists assume we pay no heed of.