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Were you at all surprised when the delivery men turned up with a sofa three days later?We value gains and losses differently, to the extent that if we lose a £10 note, the pain of doing so is about twice the pleasure we’d get if we picked up £10 on the street. A locksmith tells them that, when he started out, he took for ever to open a lock and often broke it in the process. Through his research and his (often amusing and unorthodox) experiments, he questions the forces that influence human behavior and the irrational ways in which we often all behave.“If you want to know why you always buy a bigger television than you intended, or why you think it's perfectly fine to spend a few dollars on a cup of coffee at Starbucks, or why people feel better after taking a 50-cent aspirin but continue to complain of a throbbing skull when they're told the pill they took just cost one penny, Ariely has the answer.” — Daniel Gross, Newsweek The past few weeks have brimmed over with TED-related news.So where do corporate managers—who are schooled in rational assumptions but run messy, often unpredictable businesses—go from here?In this lively article, the author, a professor of behavioral economics at Duke University, shows how the emerging discipline of behavioral economics can help businesses better defend against foolishness and waste.And where do corporate managers, schooled in rational assumptions but who run messy, often unpredictable businesses, go from here?We are finally beginning to understand that irrationality is the real invisible hand that drives human decision making.
But the global economic crisis, argues Ariely, has shattered these two articles of faith and forced us to confront our false assumptions about the way markets, companies, and people work.
Here, some highlights: This is what extinction looks like.
Photographer Paul Nicklen shocked the world with footage of a starving polar bear that he and members of his conservation group Sea Legacy captured in the Canadian Arctic Archipelago.
“It rips your heart out of your chest,” […] Continue reading Most people’s hearts leap up when they see the words “50% off” or “Buy One Get One Free.” Unfortunately, discounts cause us to act quickly and spend more than we should, say economist Dan Ariely and writer Jeff Kreisler.
As someone who has been broke for as long as I can remember, I need this book. When he got home he was asked how much he had lost and he said .
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Smart organizations will develop a behavioral economics capability by hiring qualified experimenters and conducting small trials that build on one another, revealing a radically different view of how people make decisions.