Predictably Irrational: The Hidden Forces That Shape Our Decisions
by Dan Ariely
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Book Summary Information
Author: Dan ArielyEdition: Hardcover
Audio: English (Unknown); English (Original Language); English (Published)
Format: Deckle Edge
Published: 2008-02-19
ISBN: 006135323X
Number of pages: 294
Publisher: HarperCollins
Book Reviews of Predictably Irrational: The Hidden Forces That Shape Our Decisions
Book Review: "The unexamined life is not worth living."
Summary: 4 Stars
The thesis of Dan Ariely's "Predictably Irrational" is that, to a large extent, subconscious impulses guide our actions. Ariely's field, "behavioral economics," combines psychology and economics to look at why we make certain decisions. The author and his colleagues designed a variety of experiments to explore, among other things, the ways in which people eat, shop, procrastinate, cheat, and react to medications. The results of these studies indicate that human beings are not all that rational. In fact, Ariely contends that we are "predictably irrational," and that we perform the same senseless actions over and over again. If we recognize how and why we behave illogically, perhaps we can learn to make more informed choices.
Here are some of Ariely's key findings: We look at things around us in relation to other things--context is important; although we believe that we have a handle on our preferences, clever marketers can manipulate us with ease; workers are more productive when they are encouraged to value not only their salaries but also loyalty, pride, and a sense of mission; since procrastination is a common weakness, we need extremely strong motivators to force us to act in our own best interests; too many options can ultimately be detrimental to our well-being; preconceived notions and expectations may help us navigate life more easily but they can also lead to stereotyped and faulty thinking; many men and women will cheat not only when the opportunity presents itself, but also when they can rationalize away their misdeeds.
Ariely believes that we should base economics on how people actually behave, not on how they are supposed to behave, and he stresses that his conclusions have wide-ranging implications. "If we all make systematic mistakes in our decisions, then why not develop new strategies, tools, and methods to help us make better decisions and improve our overall well-being?" Although "Predictably Irrational" is thought-provoking and fun, Ariely sometimes gets bogged down in the minutiae of his studies. The book would have been more readable had the author outlined his experiments more succinctly. In addition, his suggestions concerning ways in which we might deal with our irrationality are a bit too facile and impractical. Nevertheless, "Predictably Irrational" is valuable to the extent that it helps us better understand our predilections, quirks, and vulnerabilities. The more we know about ourselves, the better we can deal with the challenges that face us every day.
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