Behavioral Finance Lesson-Frequent Flier Points? Dan Ariely (Predictably Irrational)

[pdb]

http://advisorperspectives.com/comme.../pi_072010.php

A short, worthwhile explanation as to why people make (otherwise irrational or exaggerated) decisions involving the earning of Airline Miles, by the author of Predictably Irrational.

I'm not sure if this is the place for this post, so MOD please move to the correct forum.

[ftspence]

Originally Posted by pdb

http://advisorperspectives.com/comme.../pi_072010.php

A short, worthwhile explanation as to why people make (otherwise irrational or exaggerated) decisions involving the earning of Airline Miles, by the author of Predictably Irrational.

I'm not sure if this is the place for this post, so MOD please move to the correct forum.

It's not exactly the greatest of examples, more like an expose of naive mileage newbies. 25000 AAdvantage miles can be savvily spent for much more than $200 in value. Spend them on an emergency ticket in full coach one way and they save you over $1000 in many cases. Bank them for a Business or First class award somewhere exotic and the value is several times higher yet.