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Predictably Irrational: The Hidden Forces That Shape Our Decisions

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Dan Ariely. Availability: In Stock—Click for Locations. Published: Harper Perennial - April 27th, Membership Benefits.

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By Jacqueline Woodson. Published: Riverhead Books - September 17th, Bloomland Hardcover. By John Englehardt. Published: Dzanc Books - September 10th, Amanda H. The Cost of Social Norms: Why we are happy to do things, but not when we are paid to do them. Use social norms where possible rather than create new market norms with financial rewards or fines — these have a tendency to backfire.

When a school tried to reduce late-arriving parents by issuing fines, the problem got worse, not better — the fine created a market norm, a paid-for transaction that legitimized the undesirable behaviour. In a state of excitement or arousal, people think and behave very differently.

Even when it is their best interests, consumers are bad at planning for themselves, and worse at following through with the plan. Ford found customers were poor at organizing the regular servicing of their cars, so they organized customers, with a simple 6 months, 1yr and 2yr service plan — with reminders.

Suboptimal from an engineering perspective, car servicing volume increased. Think of consumers as kindergarten kids who need to be actively organized and managed. Consumers are irrational insofar they overvalue things once they own them. When you want consumers to make a decision, close down their options to good and bad, but position your brand as opening doors and opening up new opportunities, rather closing them down.

Previously-held expectations irrationally cloud our point of view and even sensory experience.

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For example, people prefer Budweiser with a couple of drops of vinegar in it, unless you tell them. Price has an effect on experience. A fake pain killer can work by the placebo effect — expectations trigger endorphins and opiates and other biological reactions that actually change body and experience, and it will work better, the higher the perceived price. Expensive branded goods are experienced as better. People are irrational when it comes to honesty; most people will try to be honest, and be seen to be honest when it comes to major transgressions e.

But for small transgressions e. With conscience, size matters. But Steven D.

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Levitt is not a typical economist. He is a much-heralded scholar who studies the riddles of everyday life—from cheating and crime to sports and child-rearing—and whose conclusions turn conventional wisdom on its head. Freakonomics is a groundbreaking collaboration between Levitt and Stephen J. Dubner, an award-winning author and journalist. They usually begin with a mountain of data and a simple question. Some of these questions concern life-and-death issues; others have an admittedly freakish quality.

Thus the new field of study contained in this book: Freakonomics. Through forceful storytelling and wry insight, Levitt and Dubner show that economics is, at root, the study of incentives—how people get what they want, or need, especially when other people want or need the same thing. In Freakonomics, they explore the hidden side of.

The inner workings of a crack gang. The truth about real-estate agents.

Predictably Irrational, Revised and Expanded Edition

The myths of campaign finance. The telltale marks of a cheating schoolteacher. The secrets of the Ku Klux Klan. What unites all these stories is a belief that the modern world, despite a great deal of complexity and downright deceit, is not impenetrable, is not unknowable, and—if the right questions are asked—is even more intriguing than we think. All it takes is a new way of looking. Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. It is true that readers of this book will be armed with enough riddles and stories to last a thousand cocktail parties.

But Freakonomics can provide more than that. It will literally redefine the way we view the modern world. Account Options Sign in. Top charts. New arrivals. Dan Ariely June 23, Switch to the audiobook. More by Dan Ariely See more. Dan Ariely. The New York Times bestselling author of Predictably Irrational and The Upside of Irrationality returns with thought-provoking work to challenge our preconceptions about dishonesty and urge us to take an honest look at ourselves. Does the chance of getting caught affect how likely we are to cheat?


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How do companies pave the way for dishonesty?