Predictably Irrational: The Hidden Forces That Shape Our Decisions

by Dan Ariely

Research on stereotypes shows not only that we react differently when we have a stereotype of a certain group of people, but also that stereotyped people themselves react differently when they are aware of the label that they are forced to wear (in psychological parlance, they are “primed” with this label).

When stripping away our preconceptions and our previous knowledge is not possible, perhaps we can at least acknowledge that we are all biased. If we acknowledge that we are trapped within our perspective, which partially blinds us to the truth, we may be able to accept the idea that conflicts generally require a neutral third party—who has not been tainted with our expectations—to set down the rules and regulations.

time heals all wounds, and one of the ways time works in our favor is to help us either forget or misremember the past in a way that makes us feel better about ourselves.

Across many domains of life, expectations play a huge role in the way we end up experiencing things.

positive expectations allow us to enjoy things more and improve our perception of the world around us. The danger of expecting nothing is that, in the end, it might be all we’ll get.

beliefs and expectations affect how we perceive and interpret sights, tastes, and other sensory phenomena, but also that our expectations can affect us by altering our subjective and even objective experiences—sometimes profoundly so.

familiarity may or may not breed contempt, but it definitely breeds expectations.

the Public Goods Game illustrates how we, as a society, share the public good of trust. When we all cooperate, trust is high and the total value to society is maximal. But distrust is infectious. When we see people defect by lying in their advertisements, proposing scams, etc., we start acting similarly; trust deteriorates, and everybody loses, including the individuals who initially gained from their selfish acts.

It doesn’t take much to violate trust. Just a few bad players in the market can spoil it for everyone else.

people are willing to forgive a bit of lying. Obviously, many corporations get away with lying in their advertisements and offers, at least temporarily. But when marketers persist in pulling bait-and-switch tactics, mistrust bites back, sinking its sharp teeth not only into the thigh of the perpetrator but also, more generally, into others as well.

“Nature, when she formed man for society, endowed him with an original desire to please, and an original aversion to offend his bretheren. She taught him to feel pleasure in their favourable, and pain in their unfavourable regard,”

Adam Smith

“The success of most people . . . almost always depends upon the favour and good opinion of their neighbours and equals; and without a tolerably regular conduct these can very seldom be obtained. The good old proverb, therefore, that honesty is always the best policy, holds, in such situations, almost always perfectly true.”

Adam Smith

The oath—spoken and often written—was a reminder to practitioners to regulate their own behavior, and it also provided a set of rules that had to be followed in fulfilling the duties of their profession.

people cheat when they have a chance to do so, but they don’t cheat as much as they could. Moreover, once they begin thinking about honesty—whether by recalling the Ten Commandments or by signing a simple statement—they stop cheating completely.

when we are removed from any benchmarks of ethical thought, we tend to stray into dishonesty. But if we are reminded of morality at the moment we are tempted, then we are much more likely to be honest.

cheating is a lot easier when it’s a step removed from money.

“It is difficult to get a man to understand something when his salary depends upon his not understanding it.”

Upton Sinclair

We can be dishonest without thinking of ourselves as dishonest. We can steal while our conscience is apparently fast asleep.

when you go to a restaurant, it’s a good idea to plan your order before the waiter approaches you, and stick to it. Being swayed by what other people choose might lead you to choose a worse alternative. If you’re afraid that you might be swayed anyway, a useful strategy is to announce your order to the table before the waiter comes.