Predictably Irrational PDF: The Hidden Forces That Shape Our Decisions
Published in 2008, Predictably Irrational has become a classic economics documentary that resonates well and is among the best-selling books in the world (best-sellers). A unique collection of experiments and research by Dan Ariely – professor of economics at the Massachusetts Institute of Technology (MIT) – the book is one of the pioneering steps in popularizing the field of behavioral economics. crowds of people. ‘Unreasonable’ provides extremely new perspectives on human behavior in general and consumer behavior in particular, so it is not only possible to make books for the bedside for anyone operating in the industry. Sales and marketing require knowledge of customer psychology, but it is also suitable for all readers who want to understand their ‘systematic’ irrationality.
Economics from the perspective of behavioral science
Behavioral economics is a late postpartum science, however, it plays a very important role in the study of microeconomics (the behavior of each individual in the economy).
Most readers must be familiar with classical economics, in which consumers are rational and make smart decisions to maximize their profits. Typically, the canonical laws are related to supply and demand. A statement of this rule is that when the price of an item goes up, sales fall and vice versa. Traditional economics holds that consumers are able to judge what prices are reasonable, thereby adjusting their needs.
Indeed, putting on the table a new price and the original price is as easy as eating candies. But actually, there is another question.
Does anyone know what the initial price is reasonable?
The answer in most cases is no! Surprisingly, the rational person in traditional economics often has no idea of the true value of a product. This person believes in any random price given first and compares everything based on that “anchor”. Simply by asking for the last two digits of your social security card to price some old items, you can make many people believe that this arbitrary number is the value of those items! Therefore, the law of supply and demand, seemingly at the core of rational economics, comes only after the irrational basis of consumers.
This is just one of the examples illustrating the role of behavior in economics. Traditionally, people in standard economics have always known what they want, and precisely calculate the value of each option. He will definitely never buy things he doesn’t like and don’t need, save as planned and won’t let himself be influenced by the decisions of others. But through ‘Unreasonable,’ Dan Ariely has provided the reader with a very different image: a complex entity, a living being that is not only intellectual but also has explicit actions. absurd without even being aware of it. People in behavioral economics tend to be affected by their emotions and surroundings. That person, at one time or another, is often dominated, led, and pushed away from his goals.
As a professor of behavioral economics, the author leads readers through the rigorous theories of classical economics, illuminating all hidden holes, pointing out interesting perspectives. and make readers laugh when they realize their very unreasonable behavior. Throughout the journey, readers not only discover the answers to the interesting little questions outlined in the book but also to much more macroscopic issues, through an open discussion. in every chapter of Dan Ariely. As he points out, understanding the motivations behind each option gives us the basis for identifying consumer psychology in areas ranging from dining, entertainment to investment, the effectiveness of medical expenses, corruption cases at work, saving money and tons of other important issues.