Predictably Irrational Dan Ariely Analysis

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From picking between two cereals to deciding who to take on a date, decisions affect us every day. Decisions might be perceived as easy to make but there is reason behind why we make the decisions we do. The book Predictably Irrational by Dan Ariely explores how we make decisions. Dan Ariely is a Professor of Psychology and Behavioral Economics at Duke University. In addition, he founded the Center for Advanced Hindsight, and is the author of multiple books (Ariely). Ariely uses the concept of behavioral economics to help prove how decisions are made. He aims to answer: What influences our decisions? In the book, Predictably Irrational, Ariely explains how decisions are made very well by using experiments to support his thesis.

Predictably Irrational examines the rationality of decisions people make on a day to day basis. Ariely explains that decisions are not what we would expect them to be, instead they are predictably irrational. Irrational decisions are necessarily smart and rational; they are influenced by the scenario in which a decision is made. Ariely frequently uses the term behavioral economics,
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These experiments help us understand why decisions are made “irrationally”. For example, Ariely conducted an experiment that showed that “people are willing to sacrifice the pleasure they get from a particular consumption experience to project a certain image to others” (Ariely 315). This study was conducted by watching how people order beverages on paper compared to when said out loud. People tend to prefer different beverages on paper, but when with a group of friends ask the waiter for a different beverage, to create an image for their peers. To better prove his point, Ariely incorporates other ideologies, such as the standard economics theory, to prove why behavioral economics is more accurate in decision

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