Insights from an illegal-content provider
One of the unexpected benefits of writing my book, Predictably Irrational, is the email I get from people. They discuss topics that range from raising kids to dealing with cancer to financial savings.
A few weeks ago I received an email. The sender had just finished listening to an illegal download of the audiobook and he wrote me how much he liked it. He then told me that he actually sells illegally downloaded content. But his email got even more interesting when he explained that some of the principles discussed in my book relate to his own life.For example, he described how he recently attempted to find a regular, legal job. But giving up the illegal business he had created and nurtured for five years was very difficult for him.
A second aspect of loss that he described was that of his social network of customers and friends who are linked to him through business ties. He proposed that the bond between himself and his customers is much deeper than the traditional retailer-consumer relationship. After all, in his line of illegal work the relationships have to involve more trust, reciprocity, and friendship. All of this makes it even harder to leave that circle.
This man eventually gave up his search for a legal job and went back to his life of crime. He knows his decision might lead him to prison. But he was simply unable to accept the loss of his business and social network.
The famous Economist Gary Becker proposed many years ago a model of the rational crime: Criminals would simply weigh the cost benefit of a prospective crime and act in their best interest. But as my pen pal’s story indicates, the picture is much more complex. Decisions about crime also involve our desire to avoid loss, and the need for social meaning in our life.
I suspect that if we truly want to reduce crime we have to take into account a more complete set of human motivations, including our irrational tendencies.

My latest book, The Upside of Irrationality, explores some positive and some negative ways that irrationality plays out in our lives.

I am not sure that this qualifies are irrational. Having a strong social network is a real benefit of his current job. It has value. Rational analysis should include factors such as this, even if it is not monetary.
You have enlightened us with many examples of truly irrational decision making. But this is not one of them.
@Marc
The fact is that this social network he has could be taken away at anytime by the fact that what he is doing is illegal.
He could have a social network in a real job. The reasons he is hanging onto his illegal profession is not a rational one. He is emotionally attached
Wonderful example — very thought-provoking. “Economic man” is not the same as “rational man,” which in turn is not the same as the whole man.
There’s probably a good analogy with “whole-patient” medicine, where doctors who consider the patient as a whole have difficulty communicating with doctors who consider only the bits that require doctoring at the moment. The latter method is probably a lot easier to teach and practice, but it’s based on a false assumption. As soon as the practitioners forget that it’s a simplified model and not reality, their ability to do their job decays.
I bet the man who sells the audio-books does not live in the States. Is that correct?
The person lives in Chicago
I really enjoyed this post.
The fact that it is probably impossible to separate emotion from any choice needs to be shown again and again.
When it is ignored, it drives people looking at the wrong ways of fixing/addressing all sorts of problems – social/personal/societal.
Thanks.
I was going to argue that the person does not qualify as criminal because he is not of this world…
Man, it doesn’t take long to get your NEW false assumptions.
@Marc
I think in discussions such as this, “irrational” simply means any economic decision or action that contradicts what traditional economic thought would predict, which is a cut and dry cost benefit analysis. I agree with you, however; I would not say that the person is acting irrationally, but the definition hinges on context here.
This is a really interesting post though! I can see this example in text books in the years to come, its pretty telling.
That is an excellent example of an irrational decision. When the law catches up to him he will lose much more than his business and network of fellow illegal friends. He perceives the loss of those virtual friends and his criminal enterprise to be more painful than the future loss of his freedom. This would make an interesting case study on the behavior of many types of criminals. I suspect most criminals have a very similar thought process that does not take into account the much larger potential future losees.
It seems to me that , aside from moral beliefs and the superego, what stops the average from committing a crime is a product of (probability of arrest)x(penalty for the crime). If the penalty for jaywalking were $500 fine, as it is in most cities for littering, then I can’t imagine anyone jaywalking. Similarly, if the penalty for murder or robbery was a $500 fine, there would probably be many more murders and robberies.
By the way, how many have you have jaywalked, drank when you were underage, gambled or played cards illegally (including office football pools), or driven faster than the speed limit, and how severe would the penalty have to have been for you not to have committed the crime?
I am willing to bet that the monetary value of quitting the job was much more important than the social network.
А мне нравится этот блог, только авторам надо помнить , что посетители разные бывают. Короче учитывайте возростной ценс посетителей.
Нормальненько все с наполнением, нашел все то на что рассчитывал.Хорошо сделали.
I think, that you commit an error. Let’s discuss.