Predictably Irrational Experiments

1803 Words8 Pages
Reflection on Ariely’s Experiments Dan Ariely’s book, Predictably Irrational, contains experiments on the concept of behavior economics. The concept of behavior economics combines both human behavior with the theory of economics to explain how humans make judgements and decisions. The study of behavior economics explores why people make irrational decisions and don’t follow the traditional theory of economics (www.investopedia.com). According to Ariely’s experiments, irrational thinking is predictable. This is because our minds are hardwired to think and respond in a similar way. Most often times these actions are repeated. If we can identify patterns of our irrational behaviors, we can control ourselves from escalating to an emotional state,…show more content…
In this experiment, Ariely addresses the questions of why it is difficult for people to make decisions when there are options. Why do people hold on to many options when these options will only cost them more (Ariely, 2009). From this open door experiment, Ariely concluded that humans hold on to their options due to the fear of loss. Even though holding on to these options are worthless, humans are naturally hardwired to address the pain of loss for self-gratification. By addressing the pain of loss rather than focusing on optimization, humans end up spreading themselves thin, and burn themselves…show more content…
For instance, when working on volunteer group projects at work, I believe every idea is equally important. As a leader, I would like to keep all the ideas because they are great ideas. However, it is not rational to keep all of the ideas and use them all at once. This is because there is only room for one idea. Of course, if the team narrows all the ideas to one main idea, I will lose the benefit from other ideas. If am indecisive and linger for a long time, opportunities and deadlines will be missed, and time will not be waiting for me. Therefore, as a leader, I need to be decisive, make quick decisions, avoid emotional attachments to any idea, and not be afraid of loss. In this way, if my idea or any other idea gets voted out, I can still move on to agree with the next idea. By using the goal of the project as my main focus, I can use the process of elimination to find out the best idea for the project and not let my emotions blur my vision away from my team’s
Show More
Related

  • Dan Ariely's Predictably Irrational

    1175 Words  | 5 Pages

    at Duke University, indicates in his book Predictably Irrational: The Hidden Forces That Shape Our Decisions, consumers cannot be relied upon to act rationally. Viewing the field of economics from the perspective of “how people [do] behave, instead of how they should behave” (Ariely, 2008, p. 239), Ariely argues that consumers are not rational actors but rather irrational reactors. Through detailed experiments and witty anecdotes, Predictably Irrational inspires readers to re-evaluate

    Read More

More about Predictably Irrational Experiments

Open Document