Books You Should Check Out – Predictably Irrational: The Hidden Forces That Shape Our Decisions by Dan Ariely
First in a ongoing series of book reports. My junior high English teachers would be so proud.
Mr. Ariely is a Behavioral Economist at MIT. His book explores the seemingly irrational ways people make decisions. His work shows there are a number of different ways marketers can present an offer to make it even more enticing. How context, price, procrastination, and expectations change they way people make choices are the main area covered by Mr. Ariely.
This is a great example from Chapter One. You’re shopping for houses. You find three choices: one is a contemporary design and the other two are colonials. All three are the same price and equally desirable. The only variable that stands out is one of the two colonials needs a new roof and that seller will reduce the price accordingly.
Which one would you choose?
Here is a good audio interview about the book at Amazon. You can also get more information at the Predictably Irrational website. If you’re a podcast junkie like me, Mr. Ariely does a weekly series on iTunes U called “Arming the Donkeys.” It’s in the Duke University section.
