Tuesday, March 27, 2012

Bridge to Cross : mental accounting?

I talked to my wife today and I realized that I have not seen any kind of crossing bridge ( a bridge used to cross the street) like we had in Indonesia any where in Europe or Africa. Despite my lack of coverage on all countries it is intriguing for me. My wife pointed out that most of the crossing facilities in Europe are more likely to be underground.

Despite of better quality crossing bridge is now well spread across Jakarta, people seems to be (still) reluctant to climb up the ladder just to cross. While underground tunnels and metro station are always packed with people when they cross the street or railways in Developed countries.

I am aware that the culture difference and income difference can well explain the level of dicipline in crossing the street, but May be just because people prefer to steping down than climbing up.

if you have to choose to step down first and then climbing up later VS climbing up now, and stepping down later, which one will you prefer? Laibson et.al says that people discount the future very high, you prefer to eat chocolate today, but choose apple for tomorrow. You prefer to watch TV now, and postpone exercise for next week.

it is interesting to see that even crossing the street involves risk preference and heavy discounting time preference

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