Ok, boys and girls, the word for the day is praxeology. It’s the belief that individuals engage in mindful actions for a specific goal. Ludwig von Mises, an Austrian economist, developed the idea. Huh? What?
Let’s keep it simple. Have you ever seen a rat that chose the Starbucks dumpster over others? Does a bird collect one unique seed because there’s only one seed in the world like it and values it as art? People have the ability to apply psychological value to what they covet. Our brain is more than a human calculator and helps us decide what’s valuable. We have desires, emotions, preferences and other immeasurable thoughts running through our heads. We derive pleasure from buying certain things and such pleasure drives value. Numerous studies have shown that the price of wine influences what people think regarding its value. If it costs more, it has to better. People pay more for certain brands of clothes, cars, shoes, beer, etc. because buying is an emotional process.