Predictably Irrational: The Hidden Forces That Shape Our Decisions
Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?
When it comes to making decisions in our lives, we think we're making smart, rational choices. But are we?
In this newly revised and expanded edition of the groundb...more
This book is generally brilliant if you ignore the misogyny. It is a book written by a man about a man's world for men. The "Our' in the title does not include half the world.
The misogny, the putting down of fat women, ugly ones, old ones in this often otherwise insightful and percipient book is making me groan. The a ...more
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 perspecti ...more
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. People must hire with ...more
According to the author of Predictably Irrational, we live simultaneous in the world of social norms and the world of market norms. Social norms are the exchanges and requests we make as part of personal connections. Market norms are the dollar-defined exchanges of dollars, wages, rents, prices. Here's where it gets interesting:
"In the lasts few decades, compan ...more
Dan Ariely's book, "Predictably Irrational", offers a clear and comprehensive overview of thi ...more
This book is tops. There are enough reviews here singing its praises already. I shall simply end with some notes for my own record(view spoiler)[
However, the text is not without its flaws. For instance, some of the breathlessly-reported "surprising" results aren't all that surprising or even controversial. For instance, the effect of ...more
-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 they ever have snatched 1 ...more
Explores the ability of a decoy option to determine outcomes.
(The economist subscription, travel to rome or france w/free breakfast)
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)
The power of FREE! to disguise the actual cost we pay. The difference between 0 and 1 is ...more
Each chapter has several experiments that pertain to a topic.
Chapter 1: The Truth about Relativity: Why Everything ...more
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.
People are ...more
I don't agree that everything the author ...more
On a somewhat tangential note, he lists the Ten Commandments in an appendix (after noting a study on how listing as many as you ...more
Reading this book may not make us more rational in our behavior. The least it does is to help us identify our abilities and inabilities. In short our limitations in a given context. Gradually with the awareness of our limitations, we can be relatively more rational. Be a better judge for others, since it is relatively easy to judge others and eventually a better person ourselves.
Relativity is everywhere and in everything. The other day I heard my cousin's(say John) wife saying ...more
"Blink" vs "Predictably Irrational"
I was in awe of Blink: The Power of Thinking without Thinking. Well, take the sensationalism out of it, add more scientific rigor, and you get "Predictably Irrational". This isn't to say that the topics handled are the same.
Dan Ariely covers a pretty wide range of topics varying from the appeal of all things free to how 'good' and 'honest' people cheat when the cheating is just 'a little ...more
Starting from a personal revelation, Dan Ariely does not only observe and give explainations. His process includes:
- Give a question.
- Do many experiments to see how different factors influence it.
- Bring out the psychology behind it.
Questions mentioned in this books can be referred to many circumstances and even though as ...more
I most enjoy that Ariely bases this book on actual experiments in behavioral economics, not just analyzing data. Each chapter is pretty formulaic: some anecdote or "imagine you are..." kind of scenario, then the "So we decided to try an experiment". Then he tells of the experiment, using a specific subject by name, telling about the counterintuitive thing that he or she did. Then he explains that ...more
I give this four stars because the statistical significance of the figures in the chapter on honesty is somewhat suspect. The significance of 36.2 correct answers when cheating is possible, as opposed to 35.9 appears somewhat flimsy. I would like to know the p-value of that test. Nevertheless, it is a p ...more
The fear of breaking those shiny new rules is stifling my ability to write, so I'm afraid I can't contribute a review.
It's a great book, though. Give it a try.
I started wondering why I loved one girl but not another
Why I loved going rock climbing but not studying history
What it is about life that motivates people and causes us to behave as we do
Understanding irrationality is important for our everyday actions and decisions, and for understanding how we design our environment and the choices it present to us
By un ...more
Awesome quote right? Yes, I agree. So why 3.5 stars? Yes, I know that I can not act ...more
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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 in the Israeli army and ...more