relevant from an economic perspective, a phenomenon that was denoted "relative thinking." These experiments, however, were … conducted using hypothetical questions. To test whether the relative thinking bias also exists in real-world situations, a field … the other). Relative thinking then implies that more people should add the cream cheese when the bagel's price is higher …

The article presents a theory that I denote “Relative Thinking Theory,” which claims that people consider relative … how we can think about relative thinking and formalize this behavior. Later, the article addresses several related … questions: why do people exhibit relative thinking, whether it is beneficial to do so, and whether experience and education can …