We’re a ship of fools, sailing on the sea. Ariely shows us how our brains are susceptible to suggestions, how we don’t even know our own preferences. Very readable book, and you find yourself shaking your head (agreeing, but shameful that you too would fall for those tricks) as you read.
Decoy trick– show 3 choices, one of which is a decoy that makes choice C look the best. Without the decoy, everyone chooses choice A. (Example: Economist pricing– online only: $60, print only: $130, print & online: $130, the majority choose print & online because it’s viewed as the best deal. Without the print only choice, the majority choose online only as the best deal) We view things in context– relative to other things.
* A realtor shows you 3 houses: 2 colonials and 1 modern, one of the colonials has a broken roof. You are more likely to choose the unbroken colonial, since you can compare the 2 colonials and know which one is best.
* Breadmaker on sale at Williams Sonoma, it was the only breadmaker, selling for $250. No one was buying it. Marketing consultants came in, offered a bigger breadmaker for more money, the smaller breadmaker started flying off the shelves. We had something to compare it to, and knew what the value was outside of a vacuum.
* Anchor points. Once you have a price in mind, you adjust your rationale to it.
* The power of FREE!
* We’re happy to do things, but not when we’re paid to do them (you wouldn’t whip out your wallet to pay your mom for Thanksgiving dinner, even though she probably shelled out $400 for the meal)
* The problem of procrastination– we need deadlines. We know this. We need hard & fast rules to follow, otherwise we revert to laziness.
* We don’t like to limit our options, ever. Even if we know it’s hurting our wealth, we’d sacrifice that to keep options open.
* You get what you expect. If you think you’re going to hate something, you set yourself up to hate it.
sub= The Hidden Forces That Shape Our Decisions