Predictably Irrational: The Hidden Forces That Shape Our Decisions

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Predictably Irrational: The Hidden Forces That Shape Our Decisions

by Dan Ariely

3.94 · rating details · 8,541 ratings · 1,311 reviews

Why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin?

Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught?

Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?

Why do we go back for second helpings at the unlimited buff

...more

Hardcover, 280 pages

Published February 19th 2008 by HarperCollins Canada (first published January 1st 2008)

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Oct 09, 2008

Trevor rated it

Shelves: behavioural-economics, social-theory, science

It is important that you move this one up your list of books that you have to read. This is a particularly great book. My dear friend Graham recommended I read this book. He has recommended four books to me – and the only one I couldn’t finish was “My Cousin, My Gastroenterologist: A novel” by Mark Leyler – but he did recommend, “The Tetherballs of Bougainville” also by Leyler and that is still one of the most remarkable books I’ve ever read. I haven't written a review of that book, but wher...more

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Mar 24, 2008

David rated it

Shelves: read-in-2008

All classic economic theories are based on the assumption that consumers behave rationally, despite a considerable body of evidence to the contrary. It is only in the last 25 years that economists have begun to investigate the irrational side of consumer behavior. This field of investigation, which started with the pioneering work of Tversky and Kahneman, is usually referred to as behavioral economics.

Dan Ariely's book, "Predictably Irrational", offers a clear and compre...more

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Jun 23, 2008

Darin rated it

Ariely is a good writer whose book catches onto the _Freakonomics_ craze by taking a look at times when people make different decisions that typical "laissez faire" economic theories would expect. His book is a fairly easy read and does include some surprising results through social-science experimentation.

However, the text is not without its flaws. For instance, some of the breathlessly-reported "surprising" results aren't all that surprising or even controve...more

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Aug 01, 2008

Jamie rated it

It's only about the middle of the year, but I think Dan Ariely's Predictably Irrational is a shoe-in for my favorite non-fiction book of 2008. When I was studying psychology one of my favorite topics was judgment and decision-making, which dealt in large part with the kinks in the human mind that could lead us to irrational behavior and decisions. Why are you likely to pay more for something if you are shown a large number completely unrelated to the price? Why do people who read words like "...moreIt's only about the middle of the year, but I think Dan Ariely's Predictably Irrational is a shoe-in for my favorite non-fiction book of 2008. When I was studying psychology one of my favorite topics was judgment and decision-making, which dealt in large part with the kinks in the human mind that could lead us to irrational behavior and decisions. Why are you likely to pay more for something if you are shown a large number completely unrelated to the price? Why do people who read words like "elderly," "decrepit," or "senior" tend to walk more slowly when they get up and leave the room? Why does losing a dollar cause us more pain than gaining a dollar gives us pleasure? Why are we more likely to buy a product we're not even shopping for or don't even need if we're given a free sample? And, perhaps most importantly, how do people in the know --people like advertisers, politicians, and psychology graduate students-- use these ideosycracities to subtly manipulate us?

These are the kinds of questions that Ariely, a professor at MIT, discusses under the rubric of "behavioral economics." Each chapter is dedicated to a particular concept, like the anchoring effect, priming, social norms, supply and demand, procrastination, loss avoidance, the effects of price on perception, and the like. Ariely usually chats you up a bit about the concept, then walks you through a scenario or hypothetical situation that invites you to make predictions about human behavior, then comes at you with some findings from scientific research (often experiments that he's done himself) that turns your assumptions on their little figurative ears.

Ariely's style is great --conversational, to the point, made relevant to some part of your life, and easy to follow despite navigating some tricky twists of the human psyche. And it's not just dry recitations of clinical psychology experiments --everything talked about here is ensconced in everyday life. For example, this book should win some award for describing some fascinating research on the effects of sexual arousal on decision making. Let's just say that it involved naughty pictures, experimenter issued laptops covered in protective Seran Wrap, and answering some very odd questions while in the throes of ...well, you know. I'm now more disappointed than ever that all of my extra credit in college psychology classes was never earned from anything so interesting. I just had to look at ink blots and fill out the MMPI over and over again.

Really, anyone with even an ounce of curiosity about how the human mind works --or fails to work-- within the context of every day life should find a lot of fascinating material in this book. You should definitely pick it up. And then, preferably, read it.(less)

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Apr 03, 2008

MattA rated it

Shelves: non-fiction

A thought-provoking book on behavioral economics. Why do we make the choices that we do? What is our motivation? Why are seemingly irrational choices made over and over? The author's natural, readable style allows the laymen easy access to his academic research and the conclusions he draws on these topics. I especially liked the author's basic emprical approach. There isn't hardly a proposition or theory in the book that hasn't been tested via experiment.

I don't agree that ever...moreA thought-provoking book on behavioral economics. Why do we make the choices that we do? What is our motivation? Why are seemingly irrational choices made over and over? The author's natural, readable style allows the laymen easy access to his academic research and the conclusions he draws on these topics. I especially liked the author's basic emprical approach. There isn't hardly a proposition or theory in the book that hasn't been tested via experiment.

I don't agree that everything the author presents as "irrational" is actually "irrational." What does "irrational" mean, anyway? In the introduction, the author casts irrationality as "distance from perfection." To me that definition doesn't fit. Just because you aren't making perfect choices, doesn't make you irrational. It may mean that you simply lack perfect information about your situation or about the final outcome stemming from your choices. Or it may mean that the economist studying the situation (and judging things to be irrational) simply doesn't understand all of the costs and benefits being considered by the consumer. If a researcher doesn't fully understand what motivates a person, how can he consider them "irrational?"

Or it could mean that the economist isn't using the right tool to judge the behavior. I especially dug into the third chapter, on "The Cost of Zero Cost." I think if the author had analyzed that chapter's examples in terms of benefit/cost ratio rather than absolute benefit, then the consumer behavior described would make a lot more sense.

Toward the end of the book, however, the author started digging into topics that did start to cut closer to the irrational, specifically on the topic of dishonesty. Via a variety of experiments the author shows how people's honesty can be nudged this way or that way by exposing them to different conditioning (like being told to think about the Ten Commandments before a test). Or how people are more likely to steal things rather than money, even if the value of the money matches the value of the item being stolen. The book demonstrates how stark economic assessments of cost and benefit can be fundamentally different from the way people actually view the world.

In the end I found this a readable and captivating book. I would recommend it to anyone with an interest in "popular economics", if you will. If you liked "The Undercover Economist" you'll probably like this book too.(less)

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Apr 01, 2008

Ryan rated it

Shelves: business-economics, psychology, non-fiction, own

As a social psychologist, I have been trained to scoff at all "behavioral economists" because they often claim to have recently discovered that individuals do not always behave "rationally". Furthermore, they seem to brilliantly deduce that the only way to accurately predict how humans actually behave is to test behavior/decision making empirically. Of course, social psychologists have been doing this for over half a century without much public fanfare or guest spots on "...moreAs a social psychologist, I have been trained to scoff at all "behavioral economists" because they often claim to have recently discovered that individuals do not always behave "rationally". Furthermore, they seem to brilliantly deduce that the only way to accurately predict how humans actually behave is to test behavior/decision making empirically. Of course, social psychologists have been doing this for over half a century without much public fanfare or guest spots on "MSNBC" or "CNN" every time people want to know how consumers make decisions.

With this clear bias of mine in mind, this isn't a bad book. Ariely at least gives full credit to Tversky and Kahneman's influence on his work (both psychologists), and he describes his experiments in clear, easy-to-understand language for the non-scientist reader. The big "however" with this book is Ariely's tendency to extrapolate beyond the results of his studies with recommendations concerning public policy and personal solutions for individuals. Not that his advice is necessarily wrong, but it should always be made clear where the data stop and the personal advice begins. I would recommend this book to my non-social psychologist friends.

My notes and quotes:

Ariely is a behavioral economist from Israel. Much of his work is closely related to Tversky and Kanneman’s work, although he has taken it in many new directions, but it is usually related to consumer behavior in some way.

*** He describes how money is often the most expensive way to motivate people. Instead, he suggests using social norms to do so. But he also warns the rules are different when you enter social norms into a relationship as opposed to market norms. The same rules that you use in relationships apply rather than the financial assessment of how much certain behaviors are worth. So if a business tries to develop social norms to increase productivity, they can’t all of a sudden introduce market norms without expecting a decrease in loyalty, etc.

*** He spends some time talking about the influence of arousal on decision making, or specifically how we believe we will make a particular decision when in cold, rational states than we end up making when we are highly aroused. His specific studies have examined sexual decision making and how people are more than twice as likely to rate their likelihood of engaging in various sexual behaviors as high when they are aroused vs. when they are not. This is highly relevant to things like abstinence training programs and even safe sex programs. The best prevention is to prevent the high level of arousal or the opportunity in the first place, but if arousal does occur to make sure people are trained to have what they need available “just in case”. The same principles apply for the faulty predictions of how we would behave under any emotional or motivational state, such as hunger. Another example is pregnant women not wanting to use pain medication during birth. They make the decision beforehand, but often change their mind once the pain begins because they cannot predict how they will feel during that state. One technique he offers to test this is to have a woman hold her hand into a bucket of ice for two minutes while practicing her breathing. If she is able to handle it without trouble she might be able to handle childbirth more reasonably.

*** His next section concerns procrastination and various methods of dealing with it. He divided his class into three sections, one where they got to pick their own deadlines, but once they were chosen they were firm; one where the deadlines were firmly established by the instructor; and one where there were no deadlines, they just had to submit their papers by the end of the quarter. The forced deadlines condition did best, the ones who chose their own deadlines did second, and the no deadlines condition performed the worst on the paper. He suggests the development of more external controls that we can select to prevent us from having to face temptation (to procrastinate, to spend, etc.) in the first place. By setting up our own deadlines/goals that are set in stone, we can head off our self regulation tendencies and just follow the designated structure.

*** His next section relates to when and why people cheat. He found that for many tasks where people are unsupervised, they fail to cheat as much as they possibly can, even when no one will find out, but they almost always cheat a little. This is because in small circumstances like that people don’t really consider what they are doing as wrong. In other words, small infractions don’t typically bring to mind codes of conduct we have available for moral decisions. Instead they just sweep the transgression under the rug without thinking about it. But if people were reminded of a moral code (like the 10 commandments) they wouldn’t cheat at all. The key is to make morality accessible so that the decision will be framed in moral terms. He also suggests oaths and guilds might make ethics in business more likely because people would frame their decisions more on the code of conduct of their organization/profession instead of not really thinking about it.

*** He continues on with his cheating work, but extends it to the difference between cash and non-cash currencies. When people are playing a game for cash they are much more likely to tell the truth about how much they earned (because the cash is a concrete reminder of how important the decision is) compared to when they play the game for tokens or credit of some kind. The problem is that people think there decisions are always made based on the same moral code regardless of the form of money they use. But in reality, the more concrete and meaningful a currency is, the more likely we are to frame our decisions in terms of market norms, and moral judgment. Some of the examples for non-monetary transactions are wardrobing or returning clothes after wearing them once; expense reports; taxes; insurance overestimations; or stealing anything that isn’t directly related to cash in general.

*** He ends his book with a website for his book (www.predictablyirrational.com), and mentions that you can sign up for one of his studies from the site. (less)

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Apr 06, 2008

Yulia rated it

Besides being a prolific researcher, Ariely is a very lucid writer and he's good at explaining the logic behind his study designs and the broader implications of their results. I just find it amusing that MIT classifies him as a behavioral economist when in any other university he'd be a member of the psychology department (like the other academics whose work he cites).

On a somewhat tangential note, he lists the Ten Commandments in an appendix (after noting a study on how listing ...more

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Dec 04, 2008

Steven rated it

Recommends it for: anyone with the mildest interest economics or psychology

Shelves: non-fiction, economics

This is a really interesting and accessible read about behavioral economics. Ariely pokes holes in the economic supposition that all people act in their rational best interest by showing ways in which people consistently make irrational decisions. The book is set up in an easy to understand manner; each chapter poses a simple question about human decision-making, demonstrates that most or all people are irrational in this type of decision with an experiment or two, and then muses about implicati...more

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Nov 24, 2011

Riku Sayuj rated it

· review of another edition

Recommends it for: Nishant Singh

Written in the tried-and-tested and bestselling tradition of the Malcolm Gladwell books and the Frekonomics clones, Dan Ariely's book too is an entertaining and counter-intuitive look at the world around us.

While I am getting more and more inured to this way of analysis of behavioral economics and physchology, these kinds of books are still hard to resist - that is because they do, no matter if they have now become an industry doling out similiar books by the dozens, still stretch o...moreWritten in the tried-and-tested and bestselling tradition of the Malcolm Gladwell books and the Frekonomics clones, Dan Ariely's book too is an entertaining and counter-intuitive look at the world around us.

While I am getting more and more inured to this way of analysis of behavioral economics and physchology, these kinds of books are still hard to resist - that is because they do, no matter if they have now become an industry doling out similiar books by the dozens, still stretch our perspectives about the things we normally take for granted or think unworthy of a second thought. In that sense then, this book was "unputdownable" and "highly instructive".

One of my favorite passages from the book is as follows -

"I suspect that one answer lies in the realm of social norms. As we learned in our experiments, cash will take you only so far—social norms are the forces that can make a difference in the long run. Instead of focusing the attention of the teachers, parents, and kids on test scores, salaries, and competitions, it might be better to instill in all of us a sense of purpose, mission, and pride in education. To do this we certainly can't take the path of market norms. The Beatles proclaimed some time ago that you "Can't Buy Me Love" and this also applies to the love of learning—you can't buy it; and if you try, you might chase it away.

So how can we improve the educational system? We should probably first rethink school curricula, and link them in more obvious ways to social goals (elimination of poverty and crime, elevation of human rights, etc.), technological goals (boosting energy conservation, space exploration, nanotechnology, etc.), and medical goals (cures for cancer, diabetes, obesity, etc.) that we care about as a society. This way the students, teachers, and parents might see the larger point in education and become more enthusiastic and motivated about it.

We should also work hard on making education a goal in itself, and stop confusing the number of hours students spend in school with the quality of the education they get. Kids can get excited about many things (baseball, for example), and it is our challenge as a society to make them want to know as much about Nobel laureates as they now know about baseball players. I am not suggesting that igniting a social passion for education is simple; but if we succeed in doing so, the value could be immense."

This is in the same wavelength as some of my thoughts on education -

The point is not to have a vocation oriented educational system, but rather to have a Goal-Oriented one...

I think that the abstractness in what the students want to achieve is a problem arising directly from an abstract education.

A system which promotes and encourages students to fix goals in life early and then helps them in moving towards it and rewards them for moving towards it is my vision of Utopia in Education :) -

There will not be specific courses and subjects being taught in schools and universities but there will be Goal-oriented teams formed with advisors for them and they work together to learn, understand and develop themselves in any field or knowledge that is required to fulfill their stated goals...

I am hoping to convert this idea on education into a short story or incorporate it into my ongoing novel. So the book helped me crystallize that thought.

Sorry for the tangent, getting back to the book, one more caveat - the author loses the plot a bit in the middle chapters. The beginning chapters about relativity and the power of zero were amusing and fun and the last two chapters on honesty is amazing, but the chapters in between was a bit of a drag.

Despite my mocking tone and slightly negative review, I will hurry to say that it is a very good purchase for anyone who enjoyed Gladwell's books or others of that genre, and also for marketeers and businessmen and maybe even for policy makers.

Despite sugar coating the book with the requirements of this genre/industry, Dan does raise some poignant questions about human nature and consumer behaviour that is worth pondering over. In the final analysis then, I enjoyed the book and will read it again, and hence, five stars.(less)

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Nov 07, 2008

Jackie "the Librarian" rated it

Shelves: non-fiction

Another book that looks at human behavior, and how we don't behave logically even when we are sure we do. This follows the same well-worn path of Sway, Freakonomics, and Blink, and after having read those, there wasn't a lot new here.
Yes, humans see credit differently than cash. Ariely uses that premise to show how easy it is for companies such as Enron to steal vast sums without feeling the same as a mugger taking money from an old lady's purse, despite the end result being the same.
...more

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Oct 22, 2008

Anthony rated it

Recommends it for: everyone. seriously.

Recommended to Anthony by: npr

Shelves: law-school-procrastination, cogsci, science

This is the best book I've read all week (never mind that it's the only book I've read this week). While not philosophy, it should be required for all philosophers who talk about rationality and agency, as well as social scientists, and for that matter everyone. Ariely gives concise and clear descriptions of his experiments going back several years, and extrapolates general forces affecting our choices and motivations. These vary from findings that basically prove what should be common sense (SU...more

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Sep 28, 2008

Mary rated it

This book was somewhat entertaining, but I can't really recommend it. The author does experiments with college students and beer, and extrapolates this into a world view. Most of his applications are anecdotal.
Here's an example on p. 215: "Iran is another example of a nation stricken by distrust. An Iranian student at MIT told me that business there lacks a platform of trust. Because of this, no one pays in advance, no one offers credit, and no one is willing to take risks. Peopl...more

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Jul 30, 2008

Jennifer (JC-S) rated it

Shelves: librarybooks

‘Think how hard physics would be if particles could think.’

While it is comforting to know that so many decisions are made on from irrational bases, it is discomforting to be made quite so aware of it. No, I take that back: it is quite reassuring to know that while the principles of logic have their place, people are influenced by other factors.
Professor Ariely explains some of the factors that influence our decisionmaking: from the influence of emotions to the sometimes agoni...more

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Jul 13, 2008

Greg rated it

Here are just a few tidbit's I've learned:

-If you're ever going to a bar, trying to score a little bit of lovin', bring a friend who looks very similar to you - only a little uglier. That way you'll look like the ideal candidate, not just compared to your friend but to everyone else there.

-People are more likely to steal things once removed from cash than cash - ie. the Enron crew who stole millions of dollars from the retirement pensions of little old ladies, but would ...more

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Nov 19, 2008

Jess rated it

Just finished it Nov. 18th 2008. Great look at how psychology intersects with economics and influences our behavior. We are not rational creatures but studies can predict how we will deviate from expected economic principles.

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Aug 07, 2011

Roberto Macias added it

Predictably disappointing. Don't get me wrong, there is a reason why the book got 3.5 stars, and it is a book worth reading. It is not, however, a giant paradigm shift, as the author claims. He does have some interesting research results to share with the reader, and the narration is delectable. For one who assumes that people make mistakes (including oneself), there is only a few revealing chapters.

There are some that show interesting results and provide some insight into decission making. The ...more

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Jun 08, 2009

Vicki rated it

Shelves: marketing, audible, brain-related

This is an interesting look at how an individual's decision-making process is often at odds with what is objectively beneficial for him or her. Seems a tad repetitive at times, but the examples and studies outlined are undeniably fascinating and help illuminate factors that producers and marketers need to take into account in approaching a potential audience. This would be a great tandem read with Martin Lindstrom's Buyology, which looks at the brain science underlying human desires and wants....more

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Mar 01, 2009

Kwame rated it

This interesting book adds to the infusion of psychology into the arena of economics aka Behavioral Economics. Through a series of experiments, the author confirms the idea that the assumptions of perfect rationality that standard economics texts make do not always stand. Unlike many who argue that these findings overturn the classical view, I am not at all sure that that assumption is correct because the author still confirms that despite the inability of most people to make quick comparisons a...more

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Feb 22, 2009

Peeds rated it

Shelves: reviewed

This is a very absorbing book about Behavioral Economics by Dan Ariely that makes you wonder if you really think rationally when making choices. It is about how “decoys” are used by merchants to confuse you about your choices, and how you would typically react to them. This book gives you numerous examples that show how we can be influenced to make irrational decisions in making choices such as buying magazine subscription, a DVD player, or a house. There are many experiments that the author de...more

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Jan 22, 2009

Marius rated it

Excellent book by an MIT professor describing various experiments in the field of behavioral economics. This field attempts to give some practical insights into why classical economics fails to reliably predict marketplace behavior; further, he argues that these irrational tendencies are predictable and measurable parts of human nature with far reaching consequences for interpersonal relations, commercial choices and public policy. Written in a very accessible style which allows the reader to ge...more

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Jan 08, 2012

Loren rated it

Shelves: economics, game-theory, psychology

The premise sounded interesting enough. And when I learned this professor of behavioral economics was also a researcher for the Fed, (Translation: He's paid to promote personal failure = personal responsibilty and that capitalism is good for all because the Fed pays me to say so.) I anticipated a very Game Theorist/Freakonomics rhetoric. Benefit of doubt left me undeterred. With discernment, even truth can be discovered amidst lies. I opened to the introduction and read a list of what are obvio...moreThe premise sounded interesting enough. And when I learned this professor of behavioral economics was also a researcher for the Fed, (Translation: He's paid to promote personal failure = personal responsibilty and that capitalism is good for all because the Fed pays me to say so.) I anticipated a very Game Theorist/Freakonomics rhetoric. Benefit of doubt left me undeterred. With discernment, even truth can be discovered amidst lies. I opened to the introduction and read a list of what are obviously rhetorical questions presented to an illiterate non-analytical reader, who before him, unequivocally never fully pondered the likes of these "deep behavioral issues." And then he follows up with arrogantly promosing the reader that by the end of this book "you'll know" obviously with dismissive authority of a fundamentalist zealot "the answers to these questions and many other questions that have implications for your personal life, for your business life, and for the way you look at the world."

Wow, I'm sorry, is this a self-help book? Did I stumble into the land of life coaches who present their own ideology and claim prosperity in following their way, truth and life?

"Understanding the impact of the Ten Commandments in curbing dishonesty might help prevent the next Enron-like fraud."

That doubtfuls in Biblical proportions.

Grab up a sample & refer to the Intro.

Rhetorical Question #1
Answer: From childhood throughout our lives, we are constantly inundated with commercials and advertisements (as well as drugs within our foods) to help you salivate over the most unhealthy foods. And while empty of nuition these foods are, our body's biological need for actual nutrition tricks us into begging for more. On the other hand, there is no cheerleaders for broccoli. There is no one insisting on a wholesome meal made from scratch. If you decide to go outside, turn on the radio, watch television or surf the web, is it really a surprise to you that you cannot keep to a diet? Refer to books Fast Food Nation by Eric Schlosser and The Omnivore's Dilemma by Michael Pollan.

Rhetorical Question #2
Answer: Overconsumption is the byproduct of being part of a capitalistic society and does not advocate individuality nor personal responsibility as many economists in the Fed's pocket would like you to believe. Reference Carter's Malaise speech and you will understand the rational foresight in his words. Sustainability is the antithesis of the capitalist creed. All commercials and ads are designed to make you believe true happiness lies in you consuming the next new stupid piece of shit.

Rhetorical Question #3
Answer: Aspirin comes originally from the Bayer Co. Their first marketable product was heroine. They only vilified heroine after it was fully accessible on the black market and no longer taxable. It had nothing to do with the health and well being of U.S. Citizens. So if Bayer doesnt give a rats ass about whether you live or die, of course they would prefer you bought the more expensive version of their aspirin product. Refer to This is Your Country on Drugs by Ryan Grim

Rhetorical Question #4
Answer: There is absolutely no statistical evidence supporting a higher or lower moral aptitude as a result of religiously fundamentalist thinking. Refer to Chaper 6 & 7 of The God Delusion by Richard Dawkins.(less)

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Dec 06, 2011

Loy Machedo rated it

Which is a better compliment to give your child?

1.You are hardworking
2.You are gifted
Which one is more harmful in the long rung?
And then, why?
“Predictably Irrational,” is a book written by an MIT economist Dan Ariely that explains, elaborates and exemplifies these strange questions.
It is a book that seeks to shed light into the rather relatively new world of behavioral economics and seeks to simplify how simple decisions are made by a complex mind. And the part...more

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Oct 31, 2011

Mike rated it

This is an exceptionally well written every day language book (no small feat for a person whose day job is a behavioral economy professor in MIT ), on how we allow to be manipulated by others but especially by ourselves. The research and case studies cover most facets of our life. Including on what basis we choose a mate, why we decide to go to Starbucks and pass Dunkin Donuts, beer we think is great even though it has balsamic vinegar drops, advance medication we think we take even though it'...more

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Oct 24, 2011

Alli rated it

Shelves: current-popular-books, easy-reads, non-fiction

Dan Ariely attacks an interesting aspect of cognition - how we may not be as in control of our own behaviors/tendencies as we tend to believe. Really, this is a book that is riding the wave of "pop psychology" books, first popularized by Malcolm Gladwell and his trio of books (Outliers, The Tipping Point, etc). Ariely is clearly very qualified in writing about cognitive influences - the amount of studies that he participated/co-wrote/spearheaded is astounding. Perhaps because of the...more

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Sep 06, 2011

Laurian rated it

Shelves: ux, psychology, non-fiction

I feel a bit like littlefoot in the Land Before TIme. I've gone from being surrounded by academics, and UX academics to boot, to now be surrounded by mostly CS engineers who say things to me like, "Well, that is the way we originally made it" when I ask why something is placed in the interface I'm working on. While the engineers around me tend to be supportive and considerate, it is a bit disorienting in this brave new workplace. Which is why I went looking for others like myself and f...moreI feel a bit like littlefoot in the Land Before TIme. I've gone from being surrounded by academics, and UX academics to boot, to now be surrounded by mostly CS engineers who say things to me like, "Well, that is the way we originally made it" when I ask why something is placed in the interface I'm working on. While the engineers around me tend to be supportive and considerate, it is a bit disorienting in this brave new workplace. Which is why I went looking for others like myself and found the UX Book Club of DC.

Now, I have yet to go - the first meeting is next week - but, I'm pretty excited. Well, excited like you might be to go meet a set of what you hope are cool people who will understand when you say things like, "Well, I don't like shading my buttons is red because I think it is a false affordance" or "this interface needs to be more post-structuralist" or "users understand contextual elements in an interface because of the step they are in their task." Le sigh. So I'm hoping that I get to meet a great set of people, and in the process get to read a book every month.

This month the book is Predictably Irrational, but Dan Ariely. Fair warning, it is a bit of a pop psychology book. In fact, I would put it right in the bucket with Chaldini's Influence, and others of that ilk - books about why people behave the way they do, and how to understand those behavior. These kinds of books are incredibly useful when your explain things to developers for why interfaces are designed the way they are. Because, believe me, if it were just as easy as saying, "Design an intuitive, simple, and clean interface" I wouldn't have a job. There is a lot more that goes into an interface, and part of that is understanding the user. Books like Predictably Irrational help people understand why users sometimes behave in unusual ways, but how to predict those actions.

The book is very well written. But, that is what you'd expect from a book that has sold a couple million copies. The science behind the experiments presented in the book are well couched with a conversational tone that helps explain the madness in a meaningful way to the reader. The chapters are also well broken down, with some chapters having a follow-up section of related materials in the revised edition.

However, the book is a bit predictable and just a tad preachy. By the middle of the book I had got the gist of the book - people do crazy thing. Some of those include blue collar stealing, why we value our own possessions more than others, why we have problems making choices, and the placebo effect. I mean, I get it. I get that we, as humans, do crazy things. And by about the middle of the book I had lost interest. I wanted something a lot more zany, I guess.

I recommend this book for one and all - I think it has great mass appeal. I look forward to talking to the UX Book Club about it!
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Aug 07, 2011

Tanya Hart rated it

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Very enjoyable. I have heard versions/ some other perspectives of these stories on his podcast 'Arming the Donkeys' (on iTunes U). The kinds of ideas that let you see things about yourself that are useful to see. A different approach to things from the Freakonomics guys (who don't do studies or experiments, but analyse 'found data'), but a similar habit of unveiling unexpected structures behind the way things work, or don't work.

One study, for example, asked young men a series of ques...more

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Jun 07, 2011

Bojan Tunguz rated it

· review of another edition

Many decisions that we make in our daily lives seem quite irrational when analyzed dispassionately and coolly in terms of whether those decisions make any economic sense or are they beneficial to us in some other way. And yet, those irrational decisions are not completely random, but there is some reason to their madness. The part of psychology that deals with this "irrationality" in marketplace is referred to as behavioral economics, and this research field has had a great impact on o...moreMany decisions that we make in our daily lives seem quite irrational when analyzed dispassionately and coolly in terms of whether those decisions make any economic sense or are they beneficial to us in some other way. And yet, those irrational decisions are not completely random, but there is some reason to their madness. The part of psychology that deals with this "irrationality" in marketplace is referred to as behavioral economics, and this research field has had a great impact on our understanding of how markets work and has been the major intellectual and empirical driving force away from the idealized rational agents of classical economic theory.

Behavioral economics is also the main subject of this eminently readable and entertaining book. In it the author, Dan Ariely, takes the reader on a tour of various ingenious and insightful psychological experiments that shed some light on the way we make economic decisions. The sorts of experiments described - from drinking various beers at restaurant, selling and buying tickets for a favorite sports team, to cheating in various situations when money or products are at stake - are all very relevant to everyday life. Ariely is also a very engaging writer and the book has a very strong personal feel. However, this overly personal approach can get to be a bit distracting at times. It would have been helpful if the author used examples from other researchers in the field or at least tried to show how his own research fits within some larger picture or framework. As it is, the reader almost gets the impression that Ariely has single-handedly come up with the ideas and concepts that are presented in this book.

Another problem that I have with this book is that it doesn't seem to have a well defined focus, other than the "irrationality" itself. Too many concepts from psychology (priming, placebo, peer pressure, etc.) are conflated and made to seem to be just manifestations of single overarching "irrational" behavior. I would have also liked if the author tried to provide more explanation for why we do act in this seemingly irrational way. A brief description of evolutionary forces that shaped our thinking would have been useful. Many of these "irrational" behaviors certainly must have had some purpose; otherwise we would have become extinct long time ago.

Overall, this is a very well written and entertaining introduction to behavioral economics. It will make you look at your everyday microeconomic decisions in a whole new light. (less)

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May 28, 2011

Mangoo rated it

· review of another edition

Ariel's apology of behavioral economics is a must read to get confident with the biases and the predictable irrationality of human decisions when faced with choices that should lead to a rather precise yet escaping ending within the framework of rational economics.
What Ariel proposes is that neoclassical economic theory, which has nonetheless undeniable advantages and credits, be extended with the numerous and rather discomforting yet predictable behaviors that humans perform in given sett...more

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May 06, 2011

Verycleanteeth rated it

Ch1:
Explores the ability of a decoy option to determine outcomes.
(The economist subscription, travel to rome or france w/free breakfast)

Ch2:
Our first experience becomes our anchor point that future instances are pegged to and rebound towards like a rubber band.

Anchor points are hard to change, but new anchor points can be created wholecloth by giving people a new experience (starbucks vs. dunkin donuts)

Ch3:
The power of FREE! to disguise the...more

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Apr 07, 2011

Amy rated it

Predictably Irrational is written by MIT Behavior Economist Dan Ariely. The basis of his book is that while standard economic theory assumes that we all make rational decisions to maximize our personal utility in any number of situations, we don't always behave rationally and make the best decisions. Further, we not only act irrationally, but we behave irrationally in predictable patterns. In his work, Ariely collaborates with other researchers and designs social experiments to test the decis...more

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From Wikipedia:

Dan Ariely is the James B. Duke Professor of Behavioral Economics at Duke University. He also holds an appointment at the MIT Media Lab where he is the head of the eRationality research group. He was formerly the Alfred P. Sloan Professor of Behavioral Economics at MIT Sloan School of Management.

Dan Ariely grew up in Israel after birth in New York. He served ...more

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