DAN ARIELY

Updates

Macleans (02/06/2008)

February 27, 2008 BY danariely

DAN ARIELY TALKS WITH KATE FILLION ABOUT WHY SO MANY ECONOMISTS UNDERSTAND SO LITTLE, AND HOW A BURN UNIT CHANGED HIS LIFEQ: What exactly is a behavioural economist?

A: Much of standard economic analysisassumes rationality. If you ask a standard economist why people don’t saveenough money, they’d say it’s a meaningless statement; people are reasonable,they know what they’re doing–they might not be saving a lot because maybe theydon’t have enough resources right now, maybe they want to check out how itwould feel to live with their kids at retirement, maybe they really want totest out the bounds of social security. Behavioural economists, though, believethat people make all kinds of irrational mistakes, and we try to analyze themin order to create opportunities to help people out. For instance, have youever gone to a restaurant wanting to watch your diet, but when the waiter camewith a tray of desserts, you succumbed to temptation?

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The Advantages of Closing a Few Doors (NYT 02/26/2008)

February 27, 2008 BY danariely

nyt.gifThe next time you’re juggling options — which friend to see, whichhouse to buy, which career to pursue — try asking yourself thisquestion: What would Xiang Yu do?

Xiang Yu was a Chinese general in the third century B.C. who tookhis troops across the Yangtze River into enemy territory and performedan experiment in decision making. He crushed his troops’ cooking potsand burned their ships.

He explained this was to focus them onmoving forward – a motivational speech that was not appreciated by manyof the soldiers watching their retreat option go up in flames. But General Xiang Yu would be vindicated, both on the battlefield and inthe annals of social science research.

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The Yorker

February 27, 2008 BY danariely

newyorker.jpgWHAT WAS I THINKING?The latest reasoning about our irrational ways.  

by Elizabeth Kolbert; FEBRUARY 25, 2008

People make bad decisions, but they make them in systematic ways.

Acouple of months ago, I went on-line to order a book. The book had a list price of twenty-four dollars; Amazon was offering it for eighteen. I clicked to add it to my “shopping cart” and a message popped up on the screen. “Wait!” it admonished me. “Add $7.00 to your order to qualify for FREE Super Saver Shipping!” I was ordering the book for work; still, I hesitated. I thought about whether there were other books that I might need, or want. I couldn’t think of any, so I got up from my desk, went into the living room, and asked my nine-year-old twins. They wanted a Tintin book. Since they already own a large stack of Tintins, it was hard to find one that they didn’t have. They scrolled through the possibilities. After much discussion, they picked a three-in-one volume containing two adventures they had previously read. I clicked it into the shopping cart and checked out. By the time I was done, I had saved The New Yorker $3.99 in shipping charges. Meanwhile, I had cost myself $12.91.

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The New York Observer

February 27, 2008 BY danariely

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Making the Same Mistake Twice–And Why a Smart Buy Probably Isn’t
BY EMILY BOBROW | FEBRUARY 15, 2008 | PREDICTABLY IRRATIONAL: THE HIDDEN FORCES THAT SHAPE OUR DECISIONS

I missed the deadline with this book review. Although I had plenty of time to work on it (having pitched it in December), I procrastinated and ultimately pulled an all-nighter to get it in. This sacrificed my personal utility–that is, the amount of satisfaction I have derived from this assignment. Clearly, this was not a very rational thing to do.
Why on earth did I do it? According to Predictably Irrational, a fascinating new book of behavioral economics by Dan Ariely, to dither is human. “We have problems with self-control, related to immediate and delayed gratification,” he writes. We’re inclined to put off work, even if this makes little sense in light of our long-term goals.
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Kirkus Reviews

February 27, 2008 BY danariely
Kirkus ReviewsPREDICTABLY IRRATIONAL: The Hidden Forces that Shape Our Decisions 

 

Most people don’t know what they want and don’t know that they want it-until they see it and the reptilian brain kicks in.
“Everything is relative,” writes economist Ariely (Behavioral Economics/MIT), “and that’s the point.” His book, a cousin to Freakonomics and The Long Tail, is a spry treatise on how the world works and how we spend our money based on other people’s rules. Knowing that everything is relative, says Ariely, a merchandiser will display a 19-inch television next to 26-inch and 32-inch models, the prices progressing from $210 to $385 to $580, with the point being to sell the nicely profitable, nicely midsize model first. Of course, because we want more relative to what we have, that merchandiser will hope to see us again, now clamoring for the bigger, more expensive model. Thus the economy chugs along, and thus our credit debt deepens. When the time comes to buy that bigger goodie, then we will respond to an “anchor price” that somehow worms its way into our mind. This is the same anchor price that leads us to think that a four-dollar cup of coffee is acceptable, and after doing it once, we do it again, for we now “assume that this is the way you want to spend your money.” Is it? Maybe not, but people are funny creatures of habit, and it is for all of us that Ariely has a brilliant solution to a problem that is very real: “a self-control credit card that would let people restrict their own spending behavior,” categorically and overall, fixing, say, grocery spending at $200 a week and coffee spending at $75 a month. Fat chance of it catching on, he allows: After all, the credit-card companies make $17 billion a year in interest charges. They know our irrational ways, too. Make a point of seeing this book. That way you’ll know you want it, and you will.

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Publishers Weekly

February 2, 2008 BY danariely

Publishers Weekly Irrational behavior is a part of human nature, but as MIT professor Ariely has discovered in 20 years of researching behavioral economics, people tend to behave irrationally in a predictable fashion. Drawing on psychology and economics, behavioral economics can show us why cautious people make poor decisions about sex when aroused, why patients get greater relief from a more expensive drug over its cheaper counterpart and why honest people may steal office supplies or communal food, but not money. According to Ariely, our understanding of economics, now based on the assumption of a rational subject, should, in fact, be based on our systematic, unsurprising irrationality. Ariely argues that greater understanding of previously ignored or misunderstood forces (emotions, relativity and social norms) that influence our economic behavior brings a variety of opportunities for reexamining individual motivation and consumer choice, as well as economic and educational policy. Ariely’s intelligent, exuberant style and thought-provoking arguments make for a fascinating, eye-opening read. (Feb.)

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INTERVIEWS

January 30, 2008 BY danariely

Audio
Radio 

Radio In Vivo Jan 30th 2008 Radio Show

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KUOW Speakers Forum (3/6/2008) Listen Here
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NPR: Dissecting People’s ‘Predictably Irrational’ Behavior
NPR 02/21/2008
Listen Here
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kuowDan Ariely: Our Irrational Economic Mind Listen Here
Video
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The Early Show (CBS 02/19/2008)
Dan Ariely discusses his new book,
Predictably Irrational,with CBS’s Harry Smith.
Watch Video Here
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The Big Think (02/19?2008) Watch Video Here
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BloggingHeads.Tv (02/25/2008) Watch Video Here
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Book reading at Cody’s in Berkeley CA (03/04/2008) Watch Video Here
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CNN (March 18, 2008) Watch Video Here
Print
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Decisions and illusionsWe’re so smart, right?
Yet ‘Predictably Irrational’ in making our choices
03/02/08)
Read Interview Here
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The Wrong Stuff – New York Post (03/10/2008) By Brian Moore Read Interview Here

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TESTIMONIALS

December 2, 2007 BY danariely

akerlofjpg.jpg “Predictably Irrational is wildly original. It shows why–much more often than we usually care to admit–humans make foolish, and sometimes disastrous, mistakes. Ariely not only gives us a great read; he also makes us much wiser.”

George Akerlof, Nobel Laureate in Economics, 2001 Koshland Professor of Economics, University of California at Berkeley

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groopman.jpg “A marvelous book that is both thought provoking and highly entertaining, ranging from the power of placebos to the pleasures of Pepsi. Ariely unmasks the subtle but powerful tricks that our minds play on us, and shows us how we can prevent being fooled.”

Jerome Groopman, Recanati Professor, Harvard Medical School and author of “How Doctors Think”

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gilbert.jpg “Predictably Irrational is a charmer — filled with clever experiments, engaging ideas, and delightful anecdotes. Dan Ariely is a wise and amusing guide to the foibles, errors, and bloopers of everyday decision-making.”

Daniel Gilbert, Professor of Psychology, Harvard University and author of “Stumbling on Happiness”

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mcfadden.gif “Predictably Irrational is going to be the most influential, talked-about book in years. It is so full of dazzling insights — and so engaging — that once I started reading I couldn’t put it down.”

Daniel McFadden, Nobel Laureate in Economics, 2000 Morris Cox Professor of Economics, University of California at Berkeley

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arrow.jpg Dan Ariely’s ingenious experiments explore deeply how our economic behavior is influenced by irrational forces and social norms. In a charmingly informal style that makes it accessible to a wide audience, Predictably Irrational provides a standing criticism to the explanatory power of rational egotistic choice.

Kenneth Arrow, Nobel Laureate in Economics 1972, Professor of Economics Stanford University.

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moore.jpg A delightfully brilliant guide to our irrationality – and how to overcome it – in the marketplace and everyplace

Geoffrey Moore, author of “Crossing the Chasm” and “Dealing with Darwin”

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nn.jpg After reading this book, you will understand the decisions you make in an entirely new way.

Nicholas Negroponte, founder of MIT’s Media Lab and founder and chairman of the One Laptop per Child non-profit association.

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ross3.jpg This entertaining yet brilliant book helps us recognize the foibles that underlie the decisions we make in our life — large and small, profound and banal. More than just pointing our mistakes, Ariely helps us understand and appreciate the complex beauty of human nature. It’s nothing less than a witty survival manual for the early 21st century.

David A. Ross Director emeritus, San Francisco Museum of Modern Art and Director emeritus, Whitney Museum of American Art

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dafna2.jpg A fascinating book, original in style and perspective. Every chapter presents different counter intuitive findings, and important insights that will leave you questioning a wide spectrum of beliefs about the decisions we all make. A fascinating and charming read, much like the author himself.

Dafna Ariely, Dan’s mother

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james2.jpg Dan Ariely is a genius at understanding human behavior: no economist does a better job of uncovering and explaining the hidden reasons for the weird ways we act, in the marketplace and out. Predictably Irrational will reshape the way you see the world, and yourself, for good.

James Surowiecki, author of “The Wisdom of Crowds”

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shapeimage_18.jpg Dan brilliantly shatters common misperceptions in highly unusual ways that become permanently etched in your memory. Predictably Irrational will forever change how you think about such diverse subjects as product pricing, packaging, and online sex. It is a must read for anyone who wants to make better decisions in either their personal or professional life. We plan to buy copies for all of our clients. Of course, we expect to receive a family discount….

Yoram Ariely, Dan’s father

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shapeimage_17.jpg Predictably Irrational is a an engaging, insightful and funny book, with important lessons for the decisions we make every day. But, imagine how it feels to live with the author ….

Sumi Ariely, Dan’s wife

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whm.jpg Predictably Irrational is a solidly scientific, eminently readable, and remarkably insightful look into why we do what we do every day … and why it’s so hard to change, even when we “know better.”

Wenda Harris Millard, President, Media, Martha Stewart Living Omnimedia

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alan_kay4.png One of the best books this year, or any year. A towering contribution that helps us better understand how much un-thinking we do most of the time, and how to counteract it. Everyone who has to make decisions (and has to deal with decisions of others) must read this book.

Alan Kay, President of Viewpoints Research, winner of the Turing, Draper, and Kyoto Prizes

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Vince If you are interested in finding out why looking at things with a traditional mindset does not always provide meaningful or relevant insights…read this book.

Vince Barabba, Chairman, Kings County Ventures and Market Insight Corporation

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daniel_kahneman_200×250.jpg Predictably Irrational will amuse you as it makes you wiser, and what you will learn about how you make choices will surprise you and may even change you. As a bonus, you will learn how much fun the scientific study of decision making can be.

Daniel Kahneman, Nobel Laureate in Economics, 2002 ugene Higgins Professor of Psychology and Public Affairs, Princeton University.

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shapeimage_25.jpg Predictably Irrational is an important book. Full of valuable and entertaining insights that will make an impact on your business, professional, and personal life.

Jack M Greenberg, Chairman, Western Union Company, retired Chairman and CEO McDonald’s Corporation

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Predictably irrational is clever, playful,humorous, hard hitting, insightful, and consistently fun and exciting to read.

Paul Slovic, founder and President of Decision Research

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shapeimage_27.jpg The most difficult part of investing is managing your emotions. Dan explains why that is so challenging for all of us, and how recognizing your built-in biases can help you avoid common mistakes.

Charles Schwab, Chairman and Ceo, The Charles Schwab Corporation

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heath-fred-roy.jpg Freakonomics held that people respond to incentives, perhaps in undesirable ways, but always rationally. Dan Ariely shows you how people are deeply irrational, and predictably so.

Chip Heath, Co-author Made to Stick, Professor Stanford Graduate School of Business

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chunka150-copy.jpg This is a killer book. Managers who want to really understand their customers (and themselves) must read “Predictably Irrational,” and make sure that everyone else in their organizations read it as well.

Chunka Mui, Fellow, Diamond Management and Technology Consultants, and co-author of Unleashing the Killer App.

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shapeimage_28.jpg Predictably Irrational is a fascinating book–I kept trying to stay away from it but couldn’t help myself. It’s the work of a social scientist, and the experiments described are balanced and brilliant, but the style and voice of the author is that of a story teller. This is a book about human nature itself–what a strange lot we are, and how lucky we are to have Dan Arielly among us.

Michael Ruhlman, Chef, journalist and author of, among other books, The Elements of Cooking: Translating the Chef’s Craft For Every Kitchen.

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