Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions

Amazing book , must read for those who are interested in knowing " Why" element of what we do. I found this book while I was searching for literature on neural marketing, a concept which I got introduce recently during my studies on marketing behavior. Application of these concept of customer behaviour , choice , bias , Morality of "Freebies" and human nature's compulsive need of cheating!!!! are not only have economic use but also softer aspect of self improvement. Thanks Dan for sharing your story which was really heart warming. Regards from Rajeev.

The book is a captivating journey into the intricacies of decision-making. Ariely introduces thought-provoking concepts that prompt you to reflect on the subtle influences shaping your choices.While some experiments may seem basic, and sample sizes are not extensive, the book serves as a valuable barometer for self-reflection. Its strength lies in encouraging us to assess our own reactions in similar scenarios, despite potential experimental limitations. "Predictably Irrational" is a simple yet intriguing read, offering a personal exploration of the predictably irrational nature of human decision-making.I would recommend the book for someone who is interered in introspection, potentially transforming the way you would perceive the factors guiding your personal choices.

Awesome book of behavioural economics. Some key learnings have been :According to the assumptions of standard economics, all human decisions are rational and informed, motivated by an accurate concept of the worth of all goods and services and the amount of happiness (utility) all decisions are likely to produce. Under this set of assumptions, everyone in the marketplace is trying to maximize profit and striving to optimize his experiences. As a consequence, economic theory asserts that there are no free lunches—if there were any, someone would have already found them and extracted all their value. Behavioral economists, on the other hand, believe that people are susceptible to irrelevant influences from their immediate environment (which we call context effects), irrelevant emotions, shortsightedness, and other forms of irrationality (see any chapter in this book or any research paper in behavioral economics for more examples). What good news can accompany this realization? The good news is that these mistakes also provide opportunities for improvement. If we all make systematic mistakes in our decisions, then why not develop new strategies, tools, and methods to help us make better decisions and improve our overall well-being? That's exactly the meaning of free lunches from the perspective of behavioral economics—the idea that there are tools, methods, and policies that can help all of us make better decisions and as a consequence achieve what we desire.We are pawns in a game whose forces we largely fail to comprehend. We usually think of ourselves as sitting in the driver's seat, with ultimate control over the decisions we make and the direction our life takes; but, alas, this perception has more to do with our desires—with how we want to view ourselves—than with reality. Each of the chapters in this book describes a force (emotions, relativity, social norms, etc.) that influences our behavior.Although irrationality is commonplace, it does not necessarily mean that we are helpless. Once we understand when and where we may make erroneous decisions, we can try to be more vigilant, force ourselves to think differently about these decisions, or use technology to overcome our inherent shortcomings.

This book has changed my perception about marketing

A great introductory book on behavioral economics which neither reads like a textbook nor like a children's book. You won't find a lot of groundbreaking discoveries here, but many of these decisions are very common if you observe the world around you carefully. We seem to neglect them as such. This book does a wonderful job acquainting the reader with the irrational decisions we make, so that we can learn from our mistakes. He gives a lot of examples to these laws from various fields. If you read the book carefully, you will learn a lot about why we decide in such a way and what's behind such thinking. One point I disagree with Professor Dan, is that he considers us human beings to be inherently irrational, i.e defective. But that's a minor issue. This book is a must buy to open your eyes. It won't disappoint you.

It is a good and easy to read book that give some insights into psychology. I would recommend to read "Thinking fast and slow" if anyone wants to read better psychological book.

Predictably Irrational - Book review.GET THIS BOOK. That's it.A BRILLIANT read. Irrespective of what you do, you must read this textbook of human behaviour & how amazingly complex our minds are decisions are.A sample of what's inside:Consider an experiment on 100 students based on an old subscription model of The Economist magazine, offering:Option 1 - a web subscription for $59Option 2 - a print subscription for $125Option 3 - a web & print subscription for $12516 students chose Option 10 students chose Option 2 (obvious!!)84 students chose Option 3.Revenue earned = $11,444.The author then removed Option 2 (Print sub for $125) Results:68 students chose Option 132 students went for Option 3Revenue earned = $8,012What could have possibly changed their minds? It was the mere presence of THE DECOY (2nd option) that made them buy MORE expensive options in the 1st experiment & less in the 2nd experiment.The book is replete with such experiments. Also, real-life examples of human behaviour when it comes to product pricing (including 'anchoring'), buying houses, cheating, Starbucks Upsells, what Ford learned from Toyota about Car servicing and too many brilliant quotes.

it arrived a little late, guess its because of the holiday. despite that everything is okay.

Una obra fundamental de uno de los mejores exponentes de la economía del comportamiento. Señala de manera clara y con varios ejemplos la manera en que los seres humanos se comportan en sus relaciones sociales y económicas, y por qué no es conveniente mezclar estas relaciones entre sí.

Livro que abre a mente, que faz pensar e nos mostra a realidade com outros olhos. A escrita é genial, divertida e altamente instigante! Vou ler outros do autor.

Idéal pour de lancer dans les Behavioral Sciences. Livre très bien écrit.Très bon état.

The media could not be loaded. La teoria economica classica si basa su attori razionali egoisti. Ma le persone non sono razionali.Sebbene le persone non siano razionali, non lo sono neppure casualmente irrazionali. Invece, sono prevedibilmente irrazionali, in un modo che può essere studiato e misurato ed essere integrato in una teoria economica più realistica: l'economia comportamentale.Dan Ariely, psicologo ed economista comportamentale, descrive in modo coinvolgente una serie di esperimenti che lui ei suoi colleghi hanno eseguito (principalmente su studenti universitari, nel modo consacrato dalla psicologia sperimentale) per svelare un'ampia gamma di modelli di irrazionalità. Parla del richiamo eccessivo degli articoli gratuiti, come sopravvalutiamo i nostri oggetti, come tenere aperte le opzioni può essere un errore, perché i negozi spesso mostrano un'opzione costosa che non si aspettano di vendere, perché siamo felici di fare le cose gratuitamente non lo faremmo se pagati, come gli articoli più costosi sono più efficaci di quelli identici più economici, come varia la disonestà quando sono coinvolti i contanti, come alcune persone scelgono il secondo migliore e altro ancora.Ho trovato interessante il capitolo sul lavoro gratuito contro lavoro retribuito, la differenza è tra norme sociali e norme di mercato. Il mondo ci sta spingendo verso quest'ultimo, apparentemente a scapito del godimento. Allo stesso modo il capitolo sull'onestà evidenzia come le persone siano più oneste quando si tratta di denaro contante: mentre prendere una matita dal lavoro è appena notato, prendere l'equivalente in contanti sarebbe al di là del pallido. Eppure ci stiamo muovendo verso un mondo senza contanti, magari a scapito dell'onestà?Questa è una ottima lettura, sia per esperti che per neofiti del campo economico comportamentale, con gli esperimenti chiaramente descritti e il contesto e le conseguenze ben spiegati. Non sono del tutto convinto che le situazioni sperimentali, con i loro piccoli valori e le basse conseguenze, possano essere tranquillamente estrapolate a casi di scala maggiore, ma sono molto illuminanti. Molti degli esempi saranno utili per evitare un ragionamento errato in alcuni casi. (Anche se ho già ordinato quello che voglio dal menu, indipendentemente dal fatto che qualcun altro nel gruppo abbia già ordinato lo stesso.)