3 Mains Lessons From The Book

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.

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.

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 ...

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, w...