Are you sad? Don't buy or sell!

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Behavioral economists at Carnegie Mellon University in Pittsburgh have found that people are not the logical decision makers that textbooks say they are.

Some of their findings:

* People who are feeling sad are less likely to negotiate for a lower price. (It's not a good time to buy a used car.)

If you are feeling sad, don't sell anything on which price can be negotiated, because you will be more willing to sell for less. (Don't sell a car or hold a garage sale.)

* Disgust makes people want to get rid of things and reduces their selling prices. (Organize your place before giving away half of your stuff.)

* Anger makes people assess situations more optimistically. They downplay risks and overestimate potential benefits. (It's not a good time to invest.)

Long Island Money & Careers Articles > Are you sad? Don't buy or sell!