Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions

Front Cover
Harper Collins, May 19, 2009 - Business & Economics - 400 pages
97 Reviews

How do we think about money?
What caused bankers to lose sight of the economy?
What caused individuals to take on mortgages that were not within their means?
What irrational forces guided our decisions?
And how can we recover from an economic crisis?

In this revised and expanded edition of the New York Times and Wall Street Journal bestseller Predictably Irrational, Duke University's behavioral economist Dan Ariely explores the hidden forces that shape our decisions, including some of the causes responsible for the current economic crisis. Bringing a much-needed dose of sophisticated psychological study to the realm of public policy, Ariely offers his own insights into the irrationalities of everyday life, the decisions that led us to the financial meltdown of 2008, and the general ways we get ourselves into trouble.

Blending common experiences and clever experiments with groundbreaking analysis, Ariely demonstrates how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. As he explains, our reliance on standard economic theory to design personal, national, and global policies may, in fact, be dangerous. The mistakes that we make as individuals and institutions are not random, and they can aggregate in the market—with devastating results. In light of our current economic crisis, the consequences of these systematic and predictable mistakes have never been clearer.

Packed with new studies and thought-provoking responses to readers' questions and comments, this revised and expanded edition of Predictably Irrational will change the way we interact with the world—from the small decisions we make in our own lives to the individual and collective choices that shape our economy.

  

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Nice insights into human nature. - Goodreads
His book is fun & easy to read. - Goodreads
No new insights here, but its easily readable. - Goodreads
You never thought this before writing the book. - Goodreads

Review: Predictably Irrational: The Hidden Forces That Shape Our Decisions

User Review  - James Hatton - Goodreads

This is worth reading. It won't take long to read it. However, I'm not going to try to explain this book, too much. It's about the psychology that underlies our economic choices. When you go out with ... Read full review

Review: Predictably Irrational: The Hidden Forces That Shape Our Decisions

User Review  - Julia B - Goodreads

I found this book very interesting. It's helpful to have some insight as to your own rational limits. He had a fun but erudite tone which makes the book and easy read. Read full review

Contents

Chapter
1
Chapter 2
23
The Cost of Zero Cost
49
Chapter 4
67
Chapter 5
89
Chapter 6
105
Chapter 7
127
Chapter 8
139
Chapter 11
195
Chapter 12
217
Chapter 13
231
Reflections and Anecdotes about Some of the Chapters
245
Thoughts about the Subprime Mortgage Crisis
279
Thanks
331
Notes
341
Index
355

The Effect of Expectations
155
Chapter 10
173

Common terms and phrases

About the author (2009)

Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, with appointments at the Fuqua School of Business, the Center for Cognitive Neuroscience, the Department of Economics, and the School of Medicine. Dan earned one PhD in cognitive psychology and another PhD in business administration. He is the founder and director of the Center for Advanced Hindsight. His work has been featured in many outlets, including The New York Times, The Wall Street Journal, The Washington Post, The Boston Globe, and others. He lives in Durham, North Carolina, with his wife, Sumi, and their two creative children, Amit and Neta.

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