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
Dan Ariely's book, "Predictably Irrational", offers a clear and comprehensive overview of thi...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
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
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
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
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
"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
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.
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
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 agonising choice between...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
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.
To start, this isn't a self-help book. It's a study of human nature. But that's not to say it doesn't offer some advice on how we can combat these 'hidden forces'. Each chapter covers an area of our 'predictable irrationality...more
There are some that show interesting results and provide some insight into decission making. The...more
I used to think that the brain was the most wonderful organ in my body. Then I realized who was telling me this.Predictably Irrational is not a book about "crazy" people. Dan Ariely is no Oliver Sacks, writing witty essays about exceptional individuals whose psyches depart significantly from the norm. Although he can be witty too, Ariely has a tougher job here. He is writing for and about the rest of us, the vast majority who collectively define the norm—and about just how consistent...more
This one is obviously not a proper self-help book, the conclusions you take from can be applied to various fields, mostly economic, marketing and social.
Which means that it might actually be easier to keep some of the advises in mind in your everyday existence. That simple fact that the book is not trying to help you personally, but that it is simply showcasing what we truly are without knowing it. This might actuall...more
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