Tag: Predictably Irrational

Predictably Irrational: A Book Review

May 29th, 2012   •   no comments   

Debunking conventional wisdom that human beings are rational and logical beings, Predictably Irrational by behavioural economist Dan Ariely provides an entertaining and enlightening read in the market-tested tradition of authors like Steven Levitt and Stephen Dubner (Freakonomics series), Malcolm Gladwell, and Ori and Ron Brafman (Sway). Using the results of empirical research conducted at MIT and other university campuses, Ariely explains why we do the things we do despite their contrary effects on our health, wealth and long-term success.

Written in a light-hearted, jargon-free prose, Predictably Irrational takes us through several themes. They include the fallacy of supply and demand (ie why pricing can be so arbitrary in certain markets), the overwhelming power of FREE, the danger of turning social norms into market norms (or why you shouldn’t pay your mother-in-law for cooking a delicious family dinner), the effects of expectations (what you visualise is what you get), and two chapters on honesty and dishonesty in humans, among others.

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