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Predictably Irrational, Revised and Expanded Edition

A behavioral economist demonstrates through clever experiments that human irrationality is not random but systematic and predictable, shaping the decisions we make about money, relationships, honesty, and happiness.

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What it’s about

Why do we still have a headache after taking a one-cent aspirin, but feel relief when the same pill costs 50 cents? Why do we grab for things just because they are FREE, even when they aren't what we want? Why do we cheat a little when nobody is looking but stop completely when reminded of the Ten Commandments? In Predictably Irrational, Dan Ariely combines wit, personal stories, and a wide range of ingenious experiments to reveal the hidden forces that shape our decisions. Drawing on the emerging field of behavioral economics, he shows that we are far less rational than standard economic theory assumes, yet our deviations from rationality follow consistent, predictable patterns. By understanding when and where we go wrong, Ariely argues, we can become more vigilant, redesign our environments, and ultimately make better choices in our personal lives, businesses, and public policy.

The through-line

Who it’s for
A curious reader who wants to make better decisions in their personal, professional, and financial life and to understand what truly drives their behavior.
The problem
They repeatedly make decisions that work against their own interests—overpaying, overspending, procrastinating, overvaluing what they own, and being manipulated by marketers. They feel confused and frustrated that despite good intentions and intelligence, they keep falling into the same traps and can't fully trust their own judgment.
The plan
  1. Read each chapter and learn the specific force (relativity, anchoring, FREE, social norms, arousal, etc.) that shapes your behavior.
  2. Pause to consider how each principle applies to your own life and what you could do differently.
  3. Become aware of your vulnerabilities and question your repeated behaviors and first decisions.
  4. Use concrete tools—precommitment, moral reminders, keeping cash visible, separating social and market norms—to improve your choices.
The payoff
You recognize when and where you are likely to err and act more vigilantly. · You make wiser decisions about money, relationships, health, and time. · You protect your relationships by keeping social and market norms appropriately separate.

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