Author
Dan Ariely
12 key ideas across 2 books, each explained in our own words.
Predictably Irrational
- IDEA 1
Relativity
We judge value by comparison. Adding an inferior decoy option can make a target choice look much better.
- IDEA 2
The cost of zero
Free feels disproportionately attractive. People pick a free item over a better deal that costs a little.
- IDEA 3
Social versus market norms
Mixing money into social relationships changes them. Paying a friend for a favour can feel insulting.
The Upside of Irrationality
- IDEA 1
Big bonuses can hurt
Very high rewards can increase pressure and reduce performance on complex tasks.
- IDEA 2
Meaning motivates
People work harder when their effort is acknowledged, even if pay stays the same.
- IDEA 3
The IKEA effect
We overvalue things we helped build.
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