Predictably Irrational

Investigating the Hidden Forces that Shape Our Decisions

Dan Ariely is a behavioral scientist at MIT and the author of Predictably Irrational: The Hidden Forces that Shape Our Decisions. See full bio

October 15, 2008

How would a behavioral economist look at the sub-prime mortgage crisis?

How would a behavioral economist look at the sub-prime mortgage crisis in any way that is different from a rational economist?

Here is my perspective on the sub-prime mortgage crisis: When the housing market was hot, all the bankers that gave out loans assumed that their customers didn’t want their house to go into foreclosure, and that they

October 3, 2008

Why Are People Against the Bailout?

I would like to propose that one reason people oppose the government bailout is because they want revenge on the companies that helped lead us into this disaster. Even though they know they will lose money and it doesn't help them at all, at a very basic level a part of them want to see the companies suffer. Read More

October 2, 2008

Dear Irrational, What Will Matter Most To Voters?

Dear Irrational,

I have a simple question: What issue do you think matters most to voters in this election?

A citizen

——–

Dear Citizen, Read More

October 1, 2008

The Identifiable Victim Effect in Action

On Sept 14th 2008 the front page on the New York Times described some of the outcomes of Hurricane Ike as it traveled across Texas. In the previous 24 hours, Hurricane Ike distorted much of Galveston with a wall of water, flooding numerous coastal towns and leaving extensive damage across Houston. Read More

September 30, 2008

Never Ask Me to Make Any Predictions

When John McCain picked Sarah Palin as his running mate, my first reaction was that the race was over and the Democrats will win for sure.

Here was my reasoning:
First, McCain has been running on the "old and experienced" ticket and now he was making a choice that would make it impossible to make such claims any more.

September 29, 2008

New Heights of Dishonesty in the Government

Every time I think that cheating in the public sector cannot possibly get worse I get amazed.

Here is a report from the New York Times, that I find just unbelievable.

September 26, 2008

Belichick: A Bad Apple?

In the aftermath of Spygate, reading the deluge of blog postings-especially those by bloggers outside of New England-may have led one to the conclusion that Bill Belichick was a calculated cheat who took planned risks and in the process tarnished the sacred reputation of a national treasure. Read More

September 4, 2008

The "Not In My House" Sentiment

A recent study conducted by Zillow finds what they call a “Not My House! Sentiment,” where despite the evidence that 77% of U.S. homes actually declined in value in the past year, 62% of homeowners believe their own home’s value has increased or stayed the same. How can this be? Read More

August 28, 2008

Deconstructing Consumer Confidence

Why are Americans so gloomy? It may be all about the yoked dog and "learned helplessness." Read More

August 26, 2008

Silver, Bronze, and Regret

Who is likely to experience more regret? Someone who won silver or someone who won bronze at the Olympics? Read More

Books by Dan Ariely

Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions

Behavioral Economics Basics

Why do we often think we know what we want, only to be disappointed with our purchases and choices? Behavioral economics studies just how irrational we humans can be.

Go to the Behavioral Economics Basics page for more on Behavioral Economics including:

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