Presentation on theme: "LIST 5. Prince urged to abdicate as Citi slips November 3, 2007 INVESTORS intensified calls for Citigroup to oust its chief executive, Charles Prince,"— Presentation transcript:
Prince urged to abdicate as Citi slips November 3, 2007 INVESTORS intensified calls for Citigroup to oust its chief executive, Charles Prince, on Thursday after an analyst's report pointed out the bank's weak capital position and its shares dropped more than 6 per cent.
Ariely says, the price a consumer is willing to pay for a good (for instance, a cup of coffee), is based on a principle he calls arbitrary coherence. This principle says that the initial prices for most goods are basically arbitrary (in other words, who knows what's a good price for a cup of coffee?), but once a price is set and established in the consumers' mind, then that price shapes present prices and future prices. For instance, Starbucks tells us that the price for a "Cafe Venti Mocha Maciatta-Frappucino-Latte" is $5. Why is it $5? Who knows. It's an arbitrary price.
ARBITRARY -- adjective The decision to spend $700 billion to help the economy was not an arbitrary decision but rather took a lot of planning and debate.