George Bailey Effect

AAA

DEFINITION of 'George Bailey Effect'

A feeling of increased gratefulness for what one has upon considering how much worse off one might be if a critical event or events had not occurred. The George Bailey Effect is a reference to the experience of protagonist, George Bailey, in the movie "A Wonderful Life." In the movie, Bailey considers suicide before a supernatural experience shows him that his community would be much worse off if he had not lived.

INVESTOPEDIA EXPLAINS 'George Bailey Effect'

In economics, Daniel Kahneman has observed that there is an "aspiration treadmill" in that people who achieve increased wealth do not report increased happiness versus those who have less. This is apparently because humans adjust their expectations upward at each level of wealth or success. By imagining an alternate scenario and practicing gratitude, however, some psychologists theorize that it may be possible to maintain a high level of satisfaction and partially avoid the treadmill of increasing expectations.

RELATED TERMS
  1. Anti-Fragility

    A postulated antithesis to fragility where high-impact events ...
  2. Daniel Kahneman

    A professor emeritus of psychology and public affairs at Princeton ...
  3. Rational Behavior

    A decision-making process that is based on making choices that ...
  4. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  5. Market Psychology

    The overall sentiment or feeling that the market is experiencing ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. This Is Your Brain On Stocks
    Retirement

    This Is Your Brain On Stocks

  2. Rational Ignorance And Your Money
    Active Trading Fundamentals

    Rational Ignorance And Your Money

  3. An Introduction To Behavioral Finance
    Active Trading Fundamentals

    An Introduction To Behavioral Finance

  4. How To Avoid Emotional Investing
    Trading Strategies

    How To Avoid Emotional Investing

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center