Product Details

• Amazon Sales Rank: #144 in Books
• Published on: 2008-02-19
• Released on: 2008-02-19
• Format: Roughcut
• Number of items: 1
• Binding: Hardcover
• 304 pages

From Publishers Weekly
Irrational behavior is a part of human nature, but as MIT professor Ariely has discovered in 20 years of researching behavioral economics, people tend to behave irrationally in a predictable fashion. Drawing on psychology and economics, behavioral economics can show us why cautious people make poor decisions about sex when aroused, why patients get greater relief from a more expensive drug over its cheaper counterpart and why honest people may steal office supplies or communal food, but not money. According to Ariely, our understanding of economics, now based on the assumption of a rational subject, should, in fact, be based on our systematic, unsurprising irrationality. Ariely argues that greater understanding of previously ignored or misunderstood forces (emotions, relativity and social norms) that influence our economic behavior brings a variety of opportunities for reexamining individual motivation and consumer choice, as well as economic and educational policy. Ariely's intelligent, exuberant style and thought-provoking arguments make for a fascinating, eye-opening read. (Feb.)
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New York Times Book Review
"Sly and lucid. . . . PREDICTABLY IRRATIONAL is a far more revolutionary book than its unthreatening manner lets on."

New York Times Book Review
"Sly and lucid. . . . PREDICTABLY IRRATIONAL is a far more revolutionary book than its unthreatening manner lets on."

Customer Reviews

Fun, quick read; but not thought out completely
In the spirit of Freakonomics, you'll find Predictably Irrational to be a fun, interesting look at behavioral economics. Why do we do some of the things we do? It has some interesting data and let's you think through some of your own actions. The only problem with the book is that the author makes an attempt at the end of some of the sections to provide his own answers. That is when it can be a little scary. For example, he doesn't quite understand the basic economics of Maxi-Min theory, and thinks it is irrational to want a free $10 gift certificate instead of paying $7 for a $20 gift certificate. Ummm, if you wind up not using the gift certificate, you are $7 better off doing what he would think is irrational.

More troubling to me was his statist view (for those unfamiliar with what Statism is -- it is the desire for massive government similar to what Democrats and Republicans desire -- it is the opposite of Libertarianism). The author argues that since people are irrational, government should take over some decisions for them (as if government wasn't just a collective, larger irrationality). To the author, it is better that we all suffer the same dismal fate instead of some people being better off. As an American (in the sense that I prefer liberty and freedom), I find his statist/socialist leanings a bit overbearing and unnecessary in this book.

don't waste your money
this book has some interesting theories but they are overshadowed by the left leaning social/political commentary. I thought I bought a book on marketing experiments and not to be lectured on how government is the best answer to societies problems because people are too stupid. This man has obviously not lived in the real world only the academic world. Too bad because he has an inquisitive mind but it has been muddled by his environment.

The many foibles we have and didn't know about.
Wealth Odyssey: The Essential Road Map For Your Financial Journey Where Is It You Are Really Trying To Go With Money?

A very good, and easily read, work about how our irrational behaviors are systematic and predictable. Effects such as decoys, anchoring, self-herding, the true cost of "free," social versus market norms, "reptilian brain," endowment effect, aversion to loss, making choices and sticking with them, consequences of not deciding, expectations, beliefs and conditioning, ethics, "free lunches" and more, are all discussed based on research results of experiments with groups of people.

Dan Ariely summarizes with 2 main lessons: we fail to comprehend forces that influence our behavior, but this does not necessarily mean we are helpless. Recognition of our foibles is a start.

A companion book to this one would be Your Money & Your Brain by Jason Zweig about what actually happens inside our brains when we think about money.