The many foibles we have and didn't know about. | Predictably Irrational: The Hidden Forces That Shape Our...

`Think how hard physics would be if particles could think.' | Predictably Irrational: The Hidden Forces That Shape Our Decisions | Dan Ariely

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	• Predictably Irrational: The Hidden Forces That Shape Our Decisions Dan Ariely HarperCollins, 2008 - 304 pages average customer review:based on 126 reviews view larger image
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highly recommended

predictably interesting

an interesting way at how we think. if you liked Freakonomics, you'll like this even more.

The many foibles we have and didn't know about.

Wealth Odyssey: The Essential Road Map For Your Financial Journey Where Is It You Are Really Trying To Go With Money?

A very good, and easily read, work about how our irrational behaviors are systematic and predictable. Effects such as decoys, anchoring, self-herding, the true cost of "free," social versus market norms, "reptilian brain," endowment effect, aversion to loss, making choices and sticking with them, consequences of not deciding, expectations, beliefs and conditioning, ethics, "free lunches" and more, are all discussed based on research results of experiments with groups of people.

Dan Ariely summarizes with 2 main lessons: we fail to comprehend forces that influence our behavior, but this does not necessarily mean we are helpless. Recognition of our foibles is a start.

A companion book to this one would be Your Money & Your Brain by Jason Zweig about what actually happens inside our brains when we think about money.

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`Think how hard physics would be if particles could think.'

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 options; the pitfalls of procrastination and the lure of free offers. And why is it that we are often perfectly willing to do something for nothing, but not if payment is involved? From the discussion of the creation of a market for black pearls through discussion of types of dishonesty, Professor Ariely provides insights into human behaviour, in many cases backed by experiments that have tested his hypotheses.

This book is primarily focussed on behavioural economics, but I would argue that it would be of interest to a far wider group of readers. We are all decisionmakers and our decisions impact on others. I believe that many of us with a specific interest in public policy or management, in marketing, or in human behaviour more generally would find value in reading this book. While many of the concepts are profound, the subject matter is presented in a readable and entertaining way.

Jennifer Cameron-Smith

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Fun, quick read; but not thought out completely

In the spirit of Freakonomics, you'll find Predictably Irrational to be a fun, interesting look at behavioral economics. Why do we do some of the things we do? It has some interesting data and let's you think through some of your own actions. The only problem with the book is that the author makes an attempt at the end of some of the sections to provide his own answers. That is when it can be a little scary. For example, he doesn't quite understand the basic economics of Maxi-Min theory, and thinks it is irrational to want a free $10 gift certificate instead of paying $7 for a $20 gift certificate. Ummm, if you wind up not using the gift certificate, you are $7 better off doing what he would think is irrational.

More troubling to me was his statist view (for those unfamiliar with what Statism is -- it is the desire for massive government similar to what Democrats and Republicans desire -- it is the opposite of Libertarianism). The author argues that since people are irrational, government should take over some decisions for them (as if government wasn't just a collective, larger irrationality). To the author, it is better that we all suffer the same dismal fate instead of some people being better off. As an American (in the sense that I prefer liberty and freedom), I find his statist/socialist leanings a bit overbearing and unnecessary in this book.

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