Behavioural Economics Part2: Social Comparison Bias and the Economics of Anxiety
Behavioural Economics - Part 2 Social Comparison Bias and the Economics of Anxiety Why Comparison Costs More Than We Admit Introduction: When Comparison Becomes Invisible Pressure In Part 1, we explored how status quietly shapes human behaviour and economic decisions. In this part, we move deeper — into the emotional engine behind status behaviour: 👉 Social Comparison Bias 👉 And the Anxiety it silently produces Classical economics assumes that individuals assess their position independently. Real life shows something very different. Humans evaluate themselves relative to others - and that comparison has a cost. That cost is not always financial. Very often, it is psychological anxiety . 1. What Is Social Comparison Bias? (In Simple Human Terms) Social Comparison Bias refers to the natural tendency of humans to: Measure their success against others Evaluate worth through relative position Feel satisfied or dissatisfied based on comparison, not absolute condition People rarely ask: “A...