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
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
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
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
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
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
-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
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.
I don't agree that everything the author...more
Each chapter has several experiments that pertain to a topic.
Chapter 1: The Truth about Relativity: Why Everything...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
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.
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
"Predictably Irrational" is a fascinating look at irrational human behavior. Professor of Psychology and Behavioral Economics at Duke University, Dan Ariely leads the readers on what makes us tick by presenting a wide range of scientific experiments, findings, and anecdotes that are amusing and enlightening. This insightful 384-page book is composed of the following fifteen chapters: 1. The Truth about Relativity Why...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
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
Ariely has an easy, conversational writing style. While filled with facts and research, there is nothing dry or dull about the content. This is a well written book...more
I put this is a must-read category.
In order to get any real value out of it, you do have to invest some free thought, taking what is written and running with it.
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