Predictably Irrational

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.

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.

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.

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.

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.