Saturday, January 14, 2012
Predictably Irrational: Chapter 13
Posted by Saj Karsan
Apparently, we like to demonstrate our uniqueness. For example, if someone orders a drink ahead of us at a restaurant/bar, we are less likely to order that same drink. When we change our drink choice based on what the person before us ordered, we are also less likely to enjoy our drink, because it was not our first choice. Ariely determined this through experiment.
In this the final chapter of the book, Ariely concludes that it is clear that we do not behave rationally in a slew of different ways. Furthermore, as he demonstrated in the book, our irrational behaviours are not random. Instead, they are systematic and predictable.
As such, we can take steps to rectify our otherwise impending missteps. Ariely argues that economics should be based on how people actually behave, not how they should behave.
Labels: Predictably Irrational