Predictably Irrational— The Truth about Relativity

Predictably Irrational
Dan Arielly

In economics…rationality provides the foundation for economic theories, predictions, and recommendations…. we hold the basic beliefs about human nature on which economics is built— the simple and compelling idea that we are capable of making the right decisions for ourselves. (xix)

This book is about human irrationality….we are really less rational than standard economic theory assumes. Moreover, these irrational behaviors are neither random nor senseless. They are systematic, and since we repeat them again and again, predictable. (xx)

the truth about relativity

…humans rarely choose things in absolute terms. We don’t have an internal value meter that tells us how much things are worth. Rather we focus on the relative advantage of one thing over another, and estimate value accordingly. (2)

…most people don’t know what they want unless they see it in context. (3)

…we are always looking at the things around us in relation to others. (7)

… we not only tend to compare things with one another but also tend to focus on comparing things that are easily comparable— and avoid things that cannot be compared easily. (8)

This is the problem with relativity— we look at our decisions in a relative way and compare them locally to the available alternative. (20)

That’s the lesson we can all learn: the more we have, the more we want. And the only cure is to break the cycle of relativity. (21)