Extend Definition of Predictably Irrational
After I finished read Dan Ariely’s Predictably Irrational: The Hidden Forces That Shape Our Decisions. The book is an accessible introduce to the subject of behavioral economics, the study of how people behavior in the real world and why that varies from the predictions made by classical economic theory. If you think Predictably Irrational is just one of those books where you’ll get terrible bored, you’re very wrong. This book provides us information we were either too proud to admit or too blind to recognize in a way you’ll feel comfortable with. Ariely brings out a side of economics, business, and management we were all busy to see. According to Ariely’s book, Predictably Irrational presents a fatal blow to the idea that we can run a system on the assumption that people will take courses of action based on rational calculus, unclouded by cognitive blind-spots that make it practically impossible to find the best course of action. Ariely uses his academic background in psychology and philosophy and business in his books. Predictably irrational shows how much of our “rational” decisions are actually irrational. He points out eight thoughts that most of us never thought of-or perhaps we have; we were just too proud to think that it was actually irrational. Two of the most striking points he makes is how we are drawn to the word free and zero and how emotions still rule our decision-making process. We all want to think that we’ve been trying to detach our emotions from our jobs, that every decision we make is irrational. Rules set by society and rules set by the workplace sometimes clash and Dan does a good job of giving us a chance to balancing our act. Predictably Irrational has many more interesting examples of how psychology can affect the behavior of people. Economic theories often assume that humans will act rationally, but most marketers know that consumers often act irrationally when making purchasing decisions....
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