"Predictably Irrational" by Dan Ariely - Quick Book Review

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Real Estate Broker with Austin Texas Homes, LLC 453249

The second book I finished this year as part of my personal "book a week" challenge was "Predictably Irrational" by Dan Ariely.  I'm also happy to report that our new initiative seems to have seriously motivated my 12-year-old son, who finished a 400-page book in two days.  :)

Despite the fact that we have many hundreds of books in our home, I still find myself unable to enter a book store without making at least one purchase.  This was the case when I was recently meeting a client at Barnes and Noble, and I had a few minutes to browse before he arrived.  I was in the business/marketing section, then the best sellers caught my eye.  There was a book called "The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home", which is the type of thing that I actually like to read for entertainment.

On the cover, it mentioned an older book by Ariely, which is the one I decided to buy and read first.  Now that I've finished, I can't wait to buy his latest one.

In a nutshell, "Irrational" covers the way that people make decisions in all areas of life - medical care, social situations, college exams, and many more.  It also addresses faulty logic and mistakes we make when we are deciding things.  Many times, even though we know that there is no difference in two products or services, we will irrationally demonstrate more pleasure from the more expensive one.  This seems illogical, but we are pretty much powerless against it, based on the data in this book.

I especially liked the fact that Ariely used a major medical issue that he himself endured (badly burned over 70% of his body) to illustrate some of the lessons throughout the book.  This personal touch made it more memorable and "real" to me.

Some of his experiments are fascinating, including one in which free beer samples are given to entire tables at a pub, and the customers must choose from among four options.  Surprisingly, most people are heavily influenced by what their friends order, and they will almost always try to be unique with their decision, rather than copying what their friends have.  After tallying the satisfaction data, only the very first person to order at each table was truly happy with his/her decision.

The applications to real world problems are worth considering.  One quick example: Ariely discusses the fact that placebos often provide as much relief to patients as surgical intervention, which raises the question of how many medical procedures are conducted without proper testing and how many are fully unnecessary. Also, most people are happiest with their medical care when they have paid more for it.  Why is that?

As a longtime psychologist hobbyist, I found the studies engrossing and informational.  I love learning about why people do things, and how we are influenced by our surroundings.

It's a fast, thought-provoking read, and I would recommend picking up a copy on Amazon or at your local bookstore. 

Thanks for reading!

 

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Rainmaker
1,516,028
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Good evening Jason,

Thanks for the recommendation..sounds like an intriguing book. I read Blink and was fascinated with all it had to say about decision making and remember the part about quick snap judgments are often the best.

January 16, 2011 08:58 PM
Rainmaker
557,102
Diane McDermott
Charlotte NC Real Estate Market
Realtor®, GRI, Landis e2 Real Estate, LLC

Jason, sounds intriguing!  I love psychology-related topics, this author sounds like he has a couple of thought provoking books

January 17, 2011 02:38 PM
Ambassador
952,855
Jason Crouch
Broker - Austin Texas Real Estate (512-796-7653)
Austin Texas Homes, LLC

Gary and Dorie - I wrote about "Blink" about three years ago, actually:

http://www.theaustindude.com/2007/09/03/how-avoid-getting-sued-my-humble-opinion/ 

January 17, 2011 09:59 PM
Rainmaker
420,591
Leslie Ebersole
REALTOR - Chicagonulls Western Suburbs
Baird&Warner Fox Valley

The "friends and neighbors" affect plays out in everything from ordering an appetizer to voting for President to hiring a Realtor. The 1960s voting behavior work is irrefutably the basis for social media. Who knew my education would become useful?

Try The Black Swan for top notch writing about decision making, both rational and irrational. Maybe by the 3rd pass I'll get just a little of it.

January 17, 2011 11:28 PM
Rainmaker
460,548
Harrison K. Long
business, REALTOR , GRI, Broker
Coldwell Banker Previews, Irvine, South OC

Jason ... I liked this book too and need to read it again more carefully.  I found it intereesting that Ariely concluded after experiments and interviews that people are happiest with their medical care when they have paid more for it.  That doesn't make sense to me, and I'll think about that and what that means for our lives as business people.

January 19, 2011 01:26 AM
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I write about humorous stories, family, things that are interesting to me, and the Austin real estate market.

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