- Case 1: There is one tiger in front of you.
- Case 2: There are two tigers in front of you.
Obviously, you are more scared in case 2 than you are scared in case 1.
- Case 3: There are 100 tigers in front of you.
- Case 4: There are 101 tigers in front of you.
Now in cases 3 and 4, even though the difference in the number of tigers is the same, the difference in the fear you feel in case 4 is negligible to the fear in case 3, whereas this difference is quite substantial in cases 1 and 2.
This is because, in cases 1 and 2, the no. of tigers gets doubled. Hence the proportion is comparatively larger, than in cases 3 and 4.
Thus, logarithmic thinking helps our survival instincts and judge cases practically and comes in handy.
But in some cases, logarithmic thinking causes problems too. You wouldn't be as happy on getting a $5 discount on a $2000 object as you would be on getting a $5 discount on a $10 object.