Predictably Irrational - Deepstash
Predictably Irrational

Predictably Irrational

Dan Ariely

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Summary Of The Book

Summary Of The Book

Here's a short summary of the book. I definitely recommend a read.

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143 reads

1-Sentence Summaey

1-Sentence Summaey

Predictably Irrational explains the hidden forces that really drive how we make decisions, which are far less rational than we think, but can help us stay on top of our finances, interact better with others and live happier lives, once we know about them.

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123 reads

3 Mains Lessons From The Book

3 Mains Lessons From The Book

1. We compare whatever we can, so give others easy comparisons to pick you.

2. Free is really just another price, but a powerful one.

3. You overvalue what you own.

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147 reads

1. Give Others Easy Comparison

1. Give Others Easy Comparison

We’re wired to compare things, and our brains do so in the easiest way possible.

We compare what’s right in front of us, not necessarily what we should think about or look at that might not be around at the time.

So if you give people options to compare yourself or your products to, which are slightly worse, they’ll pick you more often.

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103 reads

2. Free Is Just Another Kind Of Price, A Very Powerful One

2. Free Is Just Another Kind Of Price, A Very Powerful One

This has to do with our incredibly strong tendency to avoid losses wherever possible. If we buy something and it’s bad, we lose money. But if we get something for free, the potential downside is zero. It still might be good for us, though, so we value free items much more highly than we should.

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112 reads

3. The Endowment Effect Causes You To Overvalue What You Own

3. The Endowment Effect Causes You To Overvalue What You Own

We love what we own simply because of our memories and fantasies about it (“I loved wearing this shirt at work/I’ll have so much fun at the game”).

We hate losing things we own, whereas we don’t mind missing out on something all that much.

Usually, we expect others to think highly of the same things we do (“If I like this carpet, I’m sure all my friends will like it too).

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96 reads

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