“Predictably Irrational” by Dan Ariely….hmm this book explains a lot. This book really opens one to Behavioral economics. The seemingly rational and irrational decisions that one makes are not what that meets the eye. I have always known that there are some things that can go incredibly right or terribly wrong in spite of meticulous planning and dedicated preparation. But this book really clears it all up fair and square. The Decoy effect: how it is used on us in our day to day life by the marketing folks and the guys and girls who know how to market themselves, is clearly explained with Experimental backing. The fallacy of supply and demand really shows that how an initial price in a new segment can really impact generation of Products and their pricing. Market is not just ‘Supply and demand ’. The way the author has explained the cost associated with something termed as FREE is indeed an eye opener. The Discussion on Market Norms and Social norms is also thought provoking in putting relationships into perspective. The Real Estate boom in Some Indian cities and the reasons behind that becomes clearer when we understand the high price of ownership. The author’s Beer experiment does clearly demonstrate what role Expectations can play in reality of one’s life. In conclusion, this is a well written book with an Experimental Approach rather than a academic approach that can be expected from text books on Marketing and Psychology .A must read book for folks in Marketing and also for the ones who want to understand their decision making pattern and seeming rationality behind the same.
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