Predictably Irrational: The Hidden Forces That Shape Our Decisions

by Dan Ariely
In simple terms, Dan Ariely’s Predictably Irrational acts as a layman’s guide in his exploration of economics and how it relates to human behaviour. Research shows that when analyzing behavioural economics, people behave irrationally in a predictable fashion.

Scientific yet immensely readable, Ariely’s standard economic theories and well structured concepts are easy for the reader to grasp in explaining, questioning and concluding these theories experimentally.

Covering topics like breaking the relativity cycle, the fallacy of supply and demand, the cost of zero, the act of a favour, making emotional decisions, procrastination, the price of ownership, and the effects of expectations, Predictably Irrational challenges readers on their own decisions and whether those decisions are made rationally.

Thought provoking and entertaining, Predictably Irrational acts as a guide to human irrationality, advocating that a deeper comprehension of emoticons, relativity and social norms improves human economic behaviour, generating reason for some human motivation and consumer choice.

If a consumer is offered the following three packages, they are most likely to choose the third:  a free vacation to Rome, a free vacation to Paris, or a free vacation to Paris with free breakfast. While Rome to Paris makes for a difficult comparison, the thinking is that by including a free breakfast in the third option, the mind sees that as the unquestionably superior option, based on relative values. When dollar values are attached to these options, marketers can then psychologically manipulate that mindset to take advantage consumer spending.

Insightful into human interaction and activity on an everyday scale, Ariely “addresses complicated problems with admirable clarity”, discussing some of the problems played by the mind that can be escaped. Ariely prefers to base economic understanding on systematic irrationality, helping people better understanding the rationality, or irrationality, impacting their decisions.

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