Everyday irrationalities
Here are some simple facts. I get paid by my employer for the work that the world thinks I do.
The payment happens by virtue of a deposit to my bank account. Now before you skip this post, read on. I am also given food coupons (Sodexo) by my employer.
The interesting thing is, my mother always thinks of the bank credit asmy hard earned money. On the other hand, she considers the Sodexo coupons as if it is a free gift given from my employer.
As a result, all the essential commodity purchase happens via the withdrawals from my bank account (supposedly from the hard earned money ) while the semi discretionary purchases are done via my Sodexo coupons (paisa vendaam coupon kudu).
Despite my telling her that my employer will not give this coupon to anyone walking on the streets, so this is given as part of the compensation, this attitude has never changed.
This attitude is prevalent among the very educated/smart/rational thinking groups too. For some reason, the salary credited is hard earned money while the stock awarded as part of the stock option is deemed free. Psychologists call this ‘mental accounting’.
The fact that paying with cash is somehow more painful than paying with card illustrates that people’s attitude and behavior towards money as in cash/currency note is different from the way they react to something which is closer to but not actual cash.
December 7th, 2011 at 7:22 pm
As you know the start-ups doing the other extreme end. Pay more with options and less with cash.
December 7th, 2011 at 8:48 pm
Gopi,
Same story. Companies too think stock options cost nothing