Predictably Irrational

We may think we are being rational when we make decisions, but the factors and biases that affect our behavior are so subtle that we don’t even know we are being irrational. Not randomly, but “Predictably”. My notes on this wonderful book by Dan Ariely.

Main Takeaway: We are far less rational in our decision making. Our irrational behaviours are neither random nor senseless-they are systematic and predictable. Though this may sound depressing, we can improve our decisions once we become aware of our shortcomings.

Our visual and decision environments are filtered to us courtesy of our eyes and ears, and our brain. By the time we comprehend and understand information, it’s not necessarily a true reflection of reality. Instead, it is our representation of reality.

Relativity

Expectations

Ownership Bias

Big Lesson: We are pawns in a game whose forces we largely fail to comprehend. We usually think of ourselves as sitting in the driver’s seat, with ultimate control over the decisions we make and the direction our life takes; but this perception has more to do with our desires-with how we want to view ourselves-than with reality.