What Monkeys Can Teach You About Money

How a Yale research team made history by teaching capuchins to spend money … and discovered that they’re just as smart—and stupid—as your financial advisor.

Allen St. John in Mental_Floss:

It’s a little bigger than a quarter and about twice as thick, but because it’s made of aluminum, it weighs roughly the same. It’s flat and smooth, except for what seem to be a few tiny bite marks around the perimeter. To you, it might look like a washer without a hole. To Felix, an alpha male capuchin monkey, and his friends at Yale University, it’s money.

“When one of the monkeys grabs a token, he’s going to hold onto it as though he really values it,” explains Laurie Santos, a psychology professor at Yale. “And the other monkeys might try to take it away from him. Just like they would with a piece of food. Just as you might want to do when you see a person flaunting cash.”

During the past seven years, Santos and Yale economist Keith Chen have conducted a series of cutting-edge experiments in which Felix and seven other monkeys trade these discs for food much like we toss a $20 bill to a cashier at Taco Bell. And in doing so, these monkeys became the first nonhumans to use, well, money.

“It sounds like the setup to a bad joke,” says Chen. “A monkey walks into a room and finds a pile of coins, and he’s got to decide how much he wants to spend on apples, how much on oranges, and how much on pineapples.”

But the remarkable thing about the research isn’t that these monkeys have learned to trade objects for food—after all, a schnauzer can be taught to hand over your slippers in exchange for a Milk-Bone. The amazing part, Chen and Santos discovered, is how closely the economic behavior of these capuchins mimics that of human beings in all its glorious irration​ality.

More here.