Book report: Predictably Irrational, by Dan Ariely
Read this book!
Oh, you want reasons? Well, there’s the interesting thing. So much of our world is based on reasons, reason, and rationality. We depend on people to vote, behave, drive, buy, and invest in rational ways. Economics is based on people behaving rationally. Yet, we know that we – or, at least, other people – are not rational. What behavioral economist Dan Ariely and others have discovered is that, not only are people irrational, but they are predictably irrational. That is, their irrationality follows regular patterns that can be measured, understood, mastered – and manipulated by those in the know.
Here’s an example. Suppose a real estate agent shows you two houses, a colonial-style and a ranch-style. You find it hard to decide between them, because it’s difficult to compare two such different styles of houses. Then, the agent shows you another house, also a colonial, but not as nice as the first one. Now, you can make up your mind: the first colonial now seems much better than not only the inferior colonial, but the ranch also. Why is this? Because our brains find it much easier to make relative comparisons, that is comparisons between similar items, than comparisons between different items. By introducing this third house, which should be irrelevant to a rational choice between the first two, the agent is subtly using our irrationality to influence us.
Ariely describes dozens of extremely clever experiments that he and other researchers have done with real people that illustrate the principles he discusses. The experiments are fascinating in themselves, and the results even more so. You will learn a lot about how people act, and act irrationally, from this book.
You will also learn about yourself. Yes, as much as you think yourself a rational person, I know that at least one of these scenarios will strike very close to home, and help you to understand how you sometimes also think irrationally. This is good: it helps us learn more about ourselves, and how our minds work, and how we can keep ourselves from being fooled by our own minds.
Among the fascinating questions he raises are: Why do we value free items so highly, even when accepting them is actually harmful? Why is it better to decide your meal order before the waitperson arrives, rather than listen to others in your party order first? Why do medicines that are more expensive work better than cheap ones? Why do placebos work at all? Does it matter who you bring with you when you go out to meet members of the opposite sex? Why do we overvalue what we already own? Why are we sometimes honest and sometimes dishonest? And what’s a simple way to make people act more honestly? Can we trust ourselves – or anyone – to do the right thing in emotional situations? And, if not, how can we plan for those situations in advance?
As you can see, such questions are important not only in personal matters, but also in government, economics, medicine, law, and ethics. Understanding how we approach these matters both rationally and irrationally can help our world work better.
But just because these are important questions doesn’t mean that this is a ponderous or pontificating book. On the contrary, Ariely is a delightful storyteller and guide to these issues. He has a light and engaging writing style that explains everything well, but without unnecessary jargon or pedantry. His examples are down to earth and of real practical value. I also found myself laughing out loud many times. How many books about behavior achieve that?
If you have any interest in human behavior, the way that people reach decisions, or how you yourself may act irrationally at times, you will enjoy this book.
How are those for reasons?
BTW, to get a sample of his ideas, watch this brief talk that Ariely gave at TED:
http://www.youtube.com/watch?v=9X68dm92HVI
Read this book!
Oh, you want reasons? Well, there’s the interesting thing. So much of our world is based on reasons, reason, and rationality. We depend on people to vote, behave, drive, buy, and invest in rational ways. Economics is based on people behaving rationally. Yet, we know that we – or, at least, other people – are not rational. What behavioral economist Dan Ariely and others have discovered is that, not only are people irrational, but they are predictably irrational. That is, their irrationality follows regular patterns that can be measured, understood, mastered – and manipulated by those in the know.
Here’s an example. Suppose a real estate agent shows you two houses, a colonial-style and a ranch-style. You find it hard to decide between them, because it’s difficult to compare two such different styles of houses. Then, the agent shows you another house, also a colonial, but not as nice as the first one. Now, you can make up your mind: the first colonial now seems much better than not only the inferior colonial, but the ranch also. Why is this? Because our brains find it much easier to make relative comparisons, that is comparisons between similar items, than comparisons between different items. By introducing this third house, which should be irrelevant to a rational choice between the first two, the agent is subtly using our irrationality to influence us.
Ariely describes dozens of extremely clever experiments that he and other researchers have done with real people that illustrate the principles he discusses. The experiments are fascinating in themselves, and the results even more so. You will learn a lot about how people act, and act irrationally, from this book.
You will also learn about yourself. Yes, as much as you think yourself a rational person, I know that at least one of these scenarios will strike very close to home, and help you to understand how you sometimes also think irrationally. This is good: it helps us learn more about ourselves, and how our minds work, and how we can keep ourselves from being fooled by our own minds.
Among the fascinating questions he raises are: Why do we value free items so highly, even when accepting them is actually harmful? Why is it better to decide your meal order before the waitperson arrives, rather than listen to others in your party order first? Why do medicines that are more expensive work better than cheap ones? Why do placebos work at all? Does it matter who you bring with you when you go out to meet members of the opposite sex? Why do we overvalue what we already own? Why are we sometimes honest and sometimes dishonest? And what’s a simple way to make people act more honestly? Can we trust ourselves – or anyone – to do the right thing in emotional situations? And, if not, how can we plan for those situations in advance?
As you can see, such questions are important not only in personal matters, but also in government, economics, medicine, law, and ethics. Understanding how we approach these matters both rationally and irrationally can help our world work better.
But just because these are important questions doesn’t mean that this is a ponderous or pontificating book. On the contrary, Ariely is a delightful storyteller and guide to these issues. He has a light and engaging writing style that explains everything well, but without unnecessary jargon or pedantry. His examples are down to earth and of real practical value. I also found myself laughing out loud many times. How many books about behavior achieve that?
If you have any interest in human behavior, the way that people reach decisions, or how you yourself may act irrationally at times, you will enjoy this book.
How are those for reasons?
BTW, to get a sample of his ideas, watch this brief talk that Ariely gave at TED:
http://www.youtube.com/watch?v=9X68dm92HVI
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