Predictably Irrational

I love when I learn great concepts and ideas in a book!  Predictably Irrational by Dan Ariely is a New York Times Bestseller.  Why?  I think because we learn so much about human behavior and how it is manipulated at times for the achievement of financial decision by corporate America but also in how it can determine how we respond to stimuli. First, I think Ariely is a genius.  His experiments as a social scientist help demonstrate how people react to certain things based on societal norms.  Each of the thirteen chapters in the book provide learning that should help me to better think through my buying decisions, my ability to motivate others, think through how I respond to the outside world, and finally understand why people act the way they do.  Many of his experiments to prove his points are done on a college campus, yes even one done at NYU!  So, would you take a $10 Amazon gift card for free or would you pay $7 for a $20 gift card? How does “free” motivate you to purchase things associated with buying a second item?  How did the black pearl market eventually get raised?  How come we put more weight into long lines outside restaurants or higher prices on items compared to no-wait restaurants or lower priced items at Wal-Mart?  Is it more painful to rip off bandages on a burn patient or should you slowly remove each bandage though it will take much longer?  How influential does arousal play in decision making (such as using a condom or having sex with a much older person)?  Would we be willing to pay our mother $400 for a gourmet Thanksgiving Dinner – how would she feel? But why is a $100 bottle of wine brought to that same dinner table not taken as an offense to mom?  Does it make sense for someone to focus exclusively on one career option early in their life instead of multiple (it does show you probably will make more money over the course of your life)?  Would you steal a Coca-Cola from your office refrigerator… how about money in the petty cash box for purchasing a can of Coke? What’s the difference?  Do we tend to fib/lie if we know we won’t get caught?  If I knew medicine to help with pain cost $2.50 per pill compared to $0.10, do I feel differently about how it makes me feel?  What great questions!  All of this, plus thoughts on the subprime mortgage crisis and reflections on the anecdotes from each of the studies that Ariely and colleagues conduct.  This is really a must read for anyone trying to understand the why?  I really enjoyed it and would highly recommend to all!  A fun and interesting read.