Predictably Irrational

384 pages, 2010

Dan Ariely

Takeaways

Description

Why do our headaches persist after we take a one-cent aspirin but disappear after we take a fifty-cent aspirin? Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?

In this revised and expanded book, Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. From drinking coffee to losing weight, from buying a car to choosing a romantic partner, we consistently overpay, underestimate, and procrastinate.

Yet, these misguided behaviors are neither random nor senseless. They're systematic and predictable—making us predictably irrational.

The Power of Free

In Predictably Irrational, Dan Ariely explores the concept of 'free' and how it can lead us to make irrational decisions. We often choose a free item over something that is almost free, even if the latter is a better deal. So, next time you see a 'free' offer, take a moment to consider if it's really the best choice.

The Influence of Expectations

Ariely's research in the book shows that our expectations can shape our experiences. If we expect something to be good, we're more likely to perceive it as good, even if it's not. This can lead us to make irrational decisions based on our expectations rather than reality. So, it's worth checking if your expectations are influencing your decisions.

The Fallacy of Supply and Demand

Predictably Irrational digs into the concept of supply and demand, showing that it's not as straightforward as we might think. Our first encounters with a product can set an 'anchor' price in our minds, influencing how much we're willing to pay for it in the future. So, don't let your first impressions dictate your spending habits.

The Cost of Social Norms

Ariely finds that we behave differently when dealing with social norms (like doing a favor) versus market norms (like getting paid). Mixing the two can lead to confusion and even resentment. So, be clear about whether you're operating in the realm of social norms or market norms to avoid misunderstandings.

The Problem of Procrastination

In the book, Ariely explores the issue of procrastination and how it can lead us to act against our best interests. Setting deadlines and making commitments can help us overcome this tendency. So, if you're struggling with procrastination, take a look at Ariely's advice on setting effective deadlines.

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Predictably Irrational is a fascinating exploration of the human mind, revealing how we often undermine our best interests. But, more importantly, it helps us to understand our own irrational behaviors.

Tim Ferriss - Entrepreneur, Author

Dan Ariely's Predictably Irrational is a remarkable look into the irrational side of human nature and its implications on our daily lives and business.

Malcolm Gladwell - Journalist, Author

Predictably Irrational is wildly original. It shows why—much more often than we usually care to admit—humans behave in ways that are irrational but predictably so.

Daniel Pink - Author, Speaker

Predictably Irrational is an important book. Full of valuable and entertaining insights that will make an impact on your business, professional, and personal life.

Chip Heath - Professor, Author

Predictably Irrational is a charmer-filled with clever experiments, engaging ideas, and delightful anecdotes. Dan Ariely is a wise and amusing guide to the foibles, errors, and bloopers of everyday decision-making.

Robert Cialdini - Psychologist, Author