How magical thinking increases auction value

Magical thinking drives buying decisions

02/26/2014

Magic thinking influences the amount of auction bids. The report US researchers in the „Proceedings "of the National Academy of Sciences of the United States („According to PNAS "), objects touched by popular celebrities earn higher profits at auctions than items that are often used by unpopular celebrities." Magical thinking is based on the fact that the positive qualities of a person are transferred to the object by the touch and thus the immaterial value On the other hand, the frequent contact of gestures with negatively perceived people causes the intangible value to drop.

Magical thinking leads to higher auction bids on items from popular stars
The researchers selected three auctions for their research, in which items were auctioned by Marylin Monroe, John F. Kennedy and his wife Jacqueline Onassis and the financial brokers Bernard Madoff and his wife Ruth. While Marylin Monroe and John F. Kennedy are still appreciated and admired by many people even after their death until today, Bernard Madoff does not enjoy a good reputation among many Americans. The broker is currently in jail for unfair business practices.

First, George Newman and Paul Bloom of Yale University, New Haven, Connecticut, and their team interviewed three neutrals on how often the items to be auctioned were likely to have been touched by celebrities. Subsequently, the estimates were compared with the prices obtained at the auction. „Based on the data from three high-profile real estate auctions, we found that the estimated contact frequency of the items by the celebrities is the final higher betting odds on items from popular personalities (eg John F. Kennedy) and the final lower betting odds on items from unpopular celebrities (eg Bernard Madoff)“, the researchers write. The collectors were therefore willing to pay the more money, the more frequently the popular celebrities could have touched the auction object. The monetary value of the objects played a subordinate role.

Magical thinking also plays an important role in the Western world
To test their results, the researchers conducted an experiment on 430 adults, virtually offering the pullover of a popular celebrity. „When asked to offer a popular star sweater, attendees said they would pay far less if they were sterilized before receiving it“, the researchers report.„However, the amount increased by the sterilization of the sweater of an unpopular celebrity.“

Newman and Bloom conclude in their study that magical thinking still plays a role in Western societies and influences purchasing decisions. (Ag)