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Predictably Irrational : The Hidden Forces That Shape Our Decisions
This Book discusses many modes of thinking and situations that may skew the traditional rational choice theory. There are 15 chapters in total, and the following outline the main points.
summary
* The Truth about Relativity : In chapter 1, Ariely describes the ways in which people frequently regard their environment in terms of their relation to others; it is the way that the human brain is wired
* The Fallacy of Supply and Demand : In chapter 2, consumers purchase items based on value, quality or availability – often on all three. The methods of appointing a value to an object with no previous value, like the Tahitian black pearl, is susceptible to irrational pricing
* The Cost of Free : In chapter 3, Ariely explains how humans react to the words "free" and "zero". Humans make decisions without rationalizing the outcomes of their choices.
* Being Paid vs. A Friendly Favor : In chapters 4 and 5, Ariely speaks in great detail of the differences between social norms—which include friendly requests with instant payback not being required—and market norms—which account for wages, prices, rents, cost benefits, and repayment being essential.
* Emotion in Decision Making : In chapter 6, Ariely collaborated with close friend George Loewenstein, a professor of economics and psychology at Carnegie Mellon University, to test the influence of arousal on decision making in high-emotion situations
* The Problem of Procrastination and Self-control : In chapter 7, over the last decade Americans have shown surprisingly little self-control
* The High Price of Ownership : In chapter 8, Ariely discusses how we overvalue what we have, and why we make irrational decisions about ownership.
* The Effect of Expectations : In chapter 10, Ariely and several colleagues conducted a series of experiments to determine whether previous knowledge can change an actual sensory experience
* The Power of Price : In chapter 11, Ariely started out with a medical procedure called internal mammary artery ligation for chest pain
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