"Our irrational behaviors are neither random nor senseless – they are systematic and predictable. We all make the same types of mistakes over and over, because of the basic wiring of our brains." Page 239, Dan Ariely
I think that summarises really well what the title "Predictably Irrational" really means.
My school recommended I read Predictably Irrational. As a Year 11 student going into Year 12, I was expecting Economics to be all about graphs and businesses.
At first glance, the cover looks not related at all to Economics because it's a sweet dispenser. You know, one of those machines you slot a coin in and outcomes one or two sweets. This gave it a less-serious vibe, and I decided to go for it.
Dan Ariely grabs you from the start with a story-telling introduction and lots of exciting ideas. He challenges the traditional Economics viewpoint that's been around for hundreds of years that humans are rational and always make good decisions. Instead, he argues Economics should research and create theories about what people actually do.
"Wouldn't economics make a lot more sense if it were based on how people actually behave, instead of how they should behave" (Ariely, Chapter 13)
I found intriguing the contrasts between what Economics has assumed for such a long time that people do, and what they actually do.
3 significant eye-opening moments I had
1. Humans are continuously manipulated, far more than we believe.
I would always consider myself aware of my surroundings. Nevertheless, time after time, I was surprised by how many traps I realised I have fallen into in my life after reading Predictably Irrational. Some of them are so clever! But some of them were funny because they weren't.
For example, I always thought getting something for free is an opportunity to take. However, now I know its a little taste of a master plan to get you buying. Besides, I realised I spend way too long queueing, signing up and signing away my personal details than I should. It just makes me wonder what else I don't realise.
2. I was able to understand in more detail why I did certain things.
I realised things I thought were unique quirks also turned out to be a something that many people experience and can relate to. It turns out we are "Predictably Irrational".
3. The knowledge that can be gained through experiments in Economics is enormous.
Dan Ariely designs experiments and studies in such a smart and exciting way, he's able to test specific parts of human behaviour. This makes it super interesting to read, as the insights are profound.
To see what I mean, just watching these brief TED videos I'm sure will help open your eyes and get you racing to pick up the book.
"That's a lesson we can all learn: the more we have, the more we want" - Dan Ariely
LEARN MORE ABOUT DAN ARIELY
Predictably Irrational is also a highly practical book that builds your knowledge and skills you can apply. The theory is conveyed in a way that is so easy to understand, and Dan Ariely brings this to life by giving practical examples always. I feel after reading Predictably Irrational, I am trained in picking up these new subtleties in life. Next time I order food with friends, volunteer or write another blog post, I'll be tuning in to this other side of life. My parents even read this book and loved the insights too.
Predictably Irrational is written with Dan Ariely's strengths of knowing how we tick psychologically. He's both a Psychology and Behavioural Economics Professor. I felt I was getting to know the USA education experience intimately and also how the book flourished to life. He has a nerve of adding even the names of people that helped him contribute to the book and even revealed some of his most personal stories. By adding them all, it became nice seeing how grateful he was to everyone that contributed. He gives this book a personal touch, sharing his voice, humour and enthusiasm. Even reading 244 pages and learning about all the experiments, I only felt more and more engaged and attentive to the information. I was absorbed.
It's was a fantastic introduction to new topics in the business world as well as Behavioural Economics. I was able to discover new concepts and facts. I found exciting learning about criminal activity in Fortune 500 companies and possible psychological causes. I also enjoyed learning about the origins of procrastination and lack of self-control. I even learnt the placebo effect may, at times have a powerful impact. It expanded on what I had learnt in Biology.
I know with all the skills I've built up and the real-world examples given, I'm sure I'll be able to apply it to my future Economics A-Level and feel so much more confident.
This is a book everyone should read regardless of their own professions or interests. It is a fantastic read to grasp the thought process behind making our decisions and why we find it so difficult to make those choices. Will you be able to take greater responsibility in the choices you make? In simple terms, it triggers curiosity.