I picked up this book due to its curious title. “Predictably Irrational”, sounded very interesting, even though I had not known about the book or the author Dan Ariely. It turned out to be an amazing book. In a very simple non-preaching style, the author goes on to show us how our behavior and decision-making is irrational and it also can be predicted easily. The book deals with the science of behavioral economics that I had not heard of before but it seems like marketing and advertising companies use it extensively to lure customers to buy their products at unreasonable prices.
The book takes up many different types of factors that affect our decisions as well as our response to situations. I will not be writing about all of them but some of them really stand out. The relativity factor is very visible in all our decision-making once we start to recognize it. We compare everything before making a decision on purchase and more importantly we compare only the easily comparable things and this is used in all the ads that are shown to us. We always get influenced by “Free” and “Sale” symbols without realizing the cost of getting things free.
Whether we believe it or not, our emotions play a great role in decisions that we make. Even though we may hate deadlines but it is a fact that deadlines are crucial to get the work done otherwise the basic human nature is to procrastinate. Of course, there is placebo effect when we are buying something. We judge the value of health care by the price we pay for it.
There are so many examples and experiments that are mentioned in the book to prove the point and that makes it so easy to relate to. This book has opened up a whole new subject for me that is very interesting and key to study of human behavior.