Predictably Irrational by Dan Ariely

Have you ever wondered why people make the decisions they do? Given the data rich world we live in, you would expect that we would make rational decisions. Not so.

In his book “Predictably Irrational” Dan Ariely provides us with a number of examples of why we just don’t act as we should. The analysis behind many of these ideas can be used to help us grow our business so spend the next ten minutes with us in finding out why the only thing that is predictable is our irrationality.

Humans rarely choose things in absolute terms. We don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly. Take Ariely’s example of TV’s in an electronics warehouse. Three sets are available for sale. One is priced high, one is priced low and one is priced somewhere in the middle.

Example 1: The Middle Makes Money

Whoops! This content is locked.image/svg+xml
Unlock this exclusive content by using one of the sharing buttons below.