Predictably Irrational: The Hidden Forces That Shape Our Decisions Summary

{original squeezed contributor: davidw}

Key Points

People are not the rational “homo economus” of classical economics, but they are irrational in predictable ways.

Most customer comparisons are relative, rather than absolute: you compare something you’re thinking of purchasing with other similar things, rather than judge the features and price in a vacuum.

Anchoring has large effects on prices.

“FREE!” has a striking effect on people, causing them to make irrational decisions.

Social interaction and market interaction are two distinct fields, and mixing them can have unintended consequences.

People’s emotional state can have a major impact on their decision making process.




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