- Hardcover: 352 pages
- Publisher: Harper; 1 edition (June 1, 2010)
- Language: English
- ISBN-10: 0061995037
- ISBN-13: 978-0061995033
- Product Dimensions: 6.1 x 1.1 x 9 inches
- Shipping Weight: 1.2 pounds (View shipping rates and policies)
- Average Customer Review: 244 customer reviews
- Amazon Best Sellers Rank: #743,906 in Books (See Top 100 in Books)
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The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home 1st Edition
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From Publishers Weekly
Ariely (Predictably Irrational) expands his research on behavioral economics to offer a more positive and personal take on human irrationality's implications for life, business, and public policy. After a youthful accident left him badly scarred and facing grueling physical therapy, Ariely's treatment required him to accept temporary pain for long-term benefit—a trade-off so antithetical to normal human behavior that it sparked the author's fascination with why we consistently fail to act in our own best interest. The author, professor of behavioral economics at Duke, leads us through experiments that reveals such idiosyncrasies as the IKEA effect (if you build something, pride and sentimental attachment are likely to give you an inflated sense of its quality) and the Baby Jessica effect (why we respond to one person's suffering but not to the suffering of many). He concludes with prescriptions for how to make real personal and societal changes, and what behavioral patterns we must identify to improve how we love, live, work, innovate, manage, and govern. Self-deprecating humor, an enthusiasm for human eccentricities, and an affable and snappy style make this read an enriching and eye-opening pleasure. (June)
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In Predictably Irrational (2008), Ariely explored the reasons why human beings frequently put aside common sense and why bad things often happen when they do. Here, in this equally entertaining and clever follow-up, Ariely shows us the other side of the irrationality coin: the beneficial outcomes and pleasant surprises that often arise from irrational behavior. Although pleasant should be taken as a relative term, since the outcomes are not necessarily pleasant for the person who was behaving irrationally. Take, for example, Thomas Edison’s obsession with DC current, and his irrational hatred of AC: trying to prove how dangerous AC was, he inadvertently—with his development of the electric chair—demonstrated to the world how powerful it could be. Ariely is an engaging and efficient writer, amusing us with stories about irrational behavior while staying away from needless technical terminology and bafflegab. Thought-provoking, entertaining, and smart: a winning combination. --David Pitt
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Behavioral Economics is a fascinating subject to me. Why do humans act the way they do, and why do they act in ways that often seem counter-intuitive or just plain wrong? I find the design of experiments to show these foibles to be fascinating and enjoyable reading.
But not this book. For starters, the writing style seemed bit long-winded and overly complicated. It always seemed like it took far more words to explain things than was actually needed.
My biggest complaint, though, was the stretch made in applying the results of the experiments. I am not a trained statistician or economist, but every time I read the results of one of the experiments and the conclusions generated, there seemed to be an obvious flaw.
For example, in one experiment, the author attempts to quantify the effects of large financial bonuses (the kinds paid to investment bankers) on their performance. As a substitute, he uses relatively poor paid workers (low wage earners in India), and offers them "bonuses" equal to several month's pay. He does this because several month's pay for these individuals is a relatively small amount of money (less that $100), so his research budget can afford it.
The problem is that while the relative sizes of the bonus might be similar, the effects they have on the wage earner can hardly be the same. If the investment banker misses his bonus, the net result might be a two day Disneyland vacation instead of two weeks in Europe--different, but hardly life changing. However, a few month's salary to an Indian wage earner, making subsistence wages, might be the difference between medical treatment versus no medical treatment for a sick child.
Obviously the motivations and consequences of these will be different. And yet the author makes no attempts to explain or control for these conditions while drawing conclusions about high wage earners based on subsistence wage earners.
A second example is a study quantifying the effects of employee motivation by an experiment performed on "workers" hired to assemble Lego toys for a dollar or so. But the type of person who signs up for an experiment to assemble Lego toys for an afternoon and a person holding a 9-5 job for years may be quite different. Again, no attempt to explain or control. But again, the author makes conclusions about the second group based on the first.
Every one of the studies I read seemed to have some flaw which was either not explained or not controlled for. After a while I stopped reading and just skimmed the last half of the book.
Very disappointed, and I would say skip this book.
-The book is broken down into two sections, one that has more to do with business related issues and the other, with issues that are more of a personal nature. The basic format is to come up with an idea that is being questioned and then to either support that idea or negate it by some sort of experiment. For example, we consider it an automatic and not to be questioned idea that the more pay that you offer someone, the more they could be motivated. Motivation for pay, though, has a limit, and after reaching that limit, increased pay has a negative effect on performance. The rationale is that the person is so fixated on the prize, that the actual job being done suffers.
-Some of the chapters cover ideas that may be related strongly, but the ideas have some sort of twist to them, so that they truly are different. Personal relationships is something that’s of interest to everyone, and new light is shed on certain facets of relationships and dating. For example, he delves into the on line dating world and give criticisms of why it isn’t set up as it should be. The human mind works in a certain way, and relationships are sparked by spontaneity. The dryness of the descriptions of each person in dating sites, inhibit the release of that spark which causes two people to relate to each other. But it’s the detail that he goes into, and recommendations for improvement, that makes this all the more interesting.
-There is also a lot of personal experience that he reveals here, which adds to the interest, and he injects personal tales throughout the book.
-All in all, there are very good and thought provoking ideas presented that can’t all be digested with just one reading. Very good for its presentation as well. Though the ideas it presents are not what you would expect, it’s an easy read, and you’ll find yourself going through the book very quickly while highlighting at least a third of what’s written.
The first half of the book covers motivation and incentives at work. Description of experiments is vivid, often presented from the perspective of the subjects in the experiments (ie rats and humans). The findings indeed provide useful lessons for employers, supervisors, as well as government. It is also a joy to read.
The second half covers the author's personal reflection and observation, as well as experiments to look into a mishmash of issues, such as revenge, online dating, adaptation to change, etc. The discussion is still interesting and enlightening. However, there is a tendency to be too brief on the statistical outcome of experiments. For example, instead of stating the proportion of subjects who responded in a certain manner, the author strays into using 'most' or 'many' in describing such proportions. I suspect that some of the experiments were performed some time ago, and it may be too cumbersome for the author to look up the actual data of these dated experiments. As such, his discussion appears rather less convincing.
In all, the book provides important lessons on the psychology of decisions. It also gives a reflective account of the personal pain that the author has suffered since sustaining horrific injuries as a teenager. A touching and instructive book.