Predictably Irrational – The hidden forces that shape our decisions

Welcome Back! I hope you enjoy the content on this site. If you have not done so already, you may want to subscribe to my RSS feed or become a fan of this blog on Facebook. Thanks for visiting!

I have just finished reading this excellent book by Dan Ariely. This book talks about how people tend to behave irrationally in a predictable fashion.

Predictably Irrational: The Hidden Forces That Shape Our Decisions

My favorite part was about the anchor price. The example was a subscription to a newspaper where there was 3 choices, a paper only subscription, an online subscription and a paper and online subscription.

The paper only subscription was way overpriced but we used to set a reference price for what the subscription would cost so the next choice seems reasonable. it’s irrational but predictable

Some of the questions this books answers:

Why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin?

Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn’t possibly be caught?

Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?

Why do we go back for second helpings at the unlimited buffet, even when our stomachs are already full?

And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar?