A couple arrive at a fancy restaurant and theyÂre offered the wine list. This establishment only has two bottles on offer, one costing £5 and the other costing £25. The second bottle seems too expensive and the diners select the cheaper one. The next week, they return. Now, thereÂs a third bottle on the list but itÂs a vintage, priced at a staggering £1,000. Suddenly, the £25 bottle doesnÂt seem all that expensive, and this time, the diners choose it instead.
Businesses use this tactic all the time  an extremely expensive option is used to make mid-range ones suddenly seem like attractive buys. The strategy only works because humans like to compare our options, rather than paying attention to their absolute values. In the wine example, the existence of the third bottle shouldnÂt matter  the £25 option costs the same amount either way, but in one scenario it looks like a rip-off and in another, it looks like a steal. The simple fact is that to us, a thingÂs value depends on the things around it. Economists often refer to this as ÂirrationalÂ.
But if thatÂs the case, weÂre not alone in our folly. Other animals, from birds to bees, make choices in the same way. Now, Tanya Latty and Madeleine Beekman from the University of Sydney, have found the same style of decision-making in a creature thatÂs completely unlike any of these animals  the slime mould, Physarum polycephalum. ItÂs a single-celled, amoeba-like creature that doesnÂt have a brain.
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Neat.
(via EconomistsView)
Cheers,
Scott.