Contrast Effect
Categories: Financial Theory, Econ, Tax
Judging people based solely on comparisons with others as opposed to their own merits.
It’s why some people who take on-ground classes like to do their class presentations first. That way, they’ll get the fairest, most unbiased grade…theoretically. Later presentations will be compared with previous presentations and, even though the merits of the presentation may be good, it just doesn’t compare to the one that was two presenters before, where everyone got candy and was able to play a game. Plus, it’s fun to sit back and relax while everyone else is under pressure.