Dan Ariely's Predictably Irrational argues that human irrationality is not random, but systematic, following predictable patterns such as the decoy effect and the high cost of "free". The book explores how social norms collide with market forces and how expectations shape experience. For a detailed summary of these behavioral economics principles, read the analysis at Dan Silvestre's Blog Dan Silvestre Predictably Irrational by Dan Ariely: Summary and Notes
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First prices become "anchors." If you see a $5,000 sofa first, a $2,000 sofa seems cheap. Ariely proves that anchors influence us even if they are completely arbitrary (like the last two digits of your Social Security number). Chapter 2: The Anchoring Effect First prices become
Ariely structures the book around specific forces that drive our irrational behavior. Here are some of the most compelling concepts: