...Dan Ariely’s evaluation of human behavior in Predictably Irrationality is essentially eccentric especially to the science reader who is trained in a world of testable explanations, logical reproducible results and predictions. We prefer to believe we are logical beings, responsible for our actions and deserve to rip the credit for every success. Then enters behavioral economics. Humans are rational beings, but not predictably. Ariely begins by affirming that humans think in relative measures. It is much easier to compare and contrast alternatives, which are familiar to us. The first chapter on relativity aptly shows limitations in judgment when faced with similar alternatives and the effect of a decoy. It seems his experiments suggest it is easier and more compelling for humans to compare 2 things, to keep a narrow focus and deliberately block out cofounding factors or scenarios. From his conclusions I learnt it is crucial to keep decision options simple, identify decoys and be able to introduce or break the cycle of relativity depending on your objective. The concept of supply and demand is fundamental in economics and remains the backbone of a market economy. However goods of ostentation as shown by the example of the pearl used by Dan Ariely defy this concept. He however goes further to show that “anchors” could be used to attribute any price to about anything. I contend that in developing economies, where a larger part of the market is still trapped at the bottom of...
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...THE NEW ECONOMICS in the SPECIAL ISSUE NEW WORLD The End of Rational Economics Your company has been operating on the premise that people – customers, employees, managers – make logical decisions. It’s time to abandon that assumption. | by Dan Ariely IN 2008, a massive earthquake reduced the financial world to rubble. Standing in the smoke and ash, Alan Greenspan, the former chairman of the U.S. Federal Reserve once hailed as “the greatest banker who ever lived,” confessed to Congress that he was “shocked” that the markets did not operate according to his lifelong expectations. He had “made a mistake in presuming that the self-interest of organizations, specifically banks and others, was such that they were best capable of protecting their own shareholders.” Jacob Thomas 78 Harvard Business Review | July–August 2009 | hbr.org hbr.org | July–August 2009 | Harvard Business Review 79 THE NEW ECONOMICS in the NEW WORLD. We are now paying a terrible price for our unblinking faith in the power of the invisible hand. We’re painfully blinking awake to the falsity of standard economic theory – that human beings are capable of always making rational decisions and that markets and institutions, in the aggregate, are healthily self-regulating. If assumptions about the way things are supposed to work have failed us in the hyperrational world of IN BRIEF Wall Street, what damage have they done in other institutions » The global economic...
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...Dan Ariely’s nonfiction book Predictably Irrational provides an exciting perspective on the field of behavioural economics. Ariely presents his own theories and research on various aspects of human behaviour. He explains the fundamental differences between traditional economics and behavioural economics in a way that is easy to understand. Traditional economics assumes that people are rational, whereas behavioural economics stresses that they are irrational. Ariely’s primary focus in the work is this debate between rationality and irrationality. The entire book is written in the first person using an informal tone. The casual tone can be justified as the book is aimed at the general public, as opposed to other researchers and academics. However, given the scientific nature of the information he is presenting, the informal tone also causes his findings to lack assertiveness. Keeping in theme with the informal tone, Ariely uses many anecdotes to convey his findings in a way that is relevant to, and can be understood by, the reader. The anecdotes help the reader grasp the concepts with greater ease, but the addition of personal stories further detracts from the assertiveness of his research. At the risk of losing some readers, it would have been preferred for Ariely to use a more formal approach to match the serious content of his work. Clearly, Ariely aimed to reach a broader range of readers who would not normally study behavioural economics. The book is geared mainly at an...
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...1. Source: book, Predictably Irrational, by Dan Ariely: pp. 4. Passage: “One thing Rapp has learned is that high-priced entrees on the menu boost revenue for the restaurant－even if no one buys them. Why? Because even though people generally won’t buy the most expensive dish on the menu, they will order the second most expensive dish. Thus, by creating an expensive dish, a restaurateur can lure customers into ordering the second most expensive choice (which can be cleverly engineered to deliver a higher profit margin).” What works: First describe a seemingly self-contradictory phenomenon to arouse interest. Then, by asking “Why?” for the reader, the author naturally gives out the reason that resolves the puzzle. Using it: I can use rhetoric questions to let readers think for themselves first, and then offer my own reason. 2. Source: book, Predictably Irrational, by Dan Ariely: pp. 17. Passage: “The result? Now the average CEO makes about 369 times as much as the average worker－about three times the salary before executive compensation went public.” What works: Using a precise number “369 times” to make a dramatic effect on the polarity of income. The number is really eye-catching, and straightly conveys a sense of sarcasm. Using it: If I want to show the scale of something, I can use exact numbers to impress the reader. 3. Source: A little faster, George? From The Economist, March 9th 2013: pp. 11. Passage: “Over the past 170 years this newspaper has tracked...
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...Matthew Ellis Marketing Management Prof Pashkevich December 4, 2013 In the book predictably irrational, author Dan Ariely explains and demonstrates through witty experiments the fact that although we may think we are always making rational, well thought out decisions, there are actually hidden factors that cloud our ability to make the right decisions. He goes on to discuss how our emotions, social norms, and other hidden forces can change our rational intentions into extremely irrational Behaviors. The interesting part is that these irrational behaviors seem like the correct thing to do at the time and we use these past experiences to make future decisions, and therefore if we are not very careful we can fall into a never ending train of irrational decisions. Dan Ariely makes it quite apparent that this behavior takes place in everyday life even though we may not know it and hopes that his research can open our eyes to this fact and help us to avoid making irrational choices. He challenges the traditional assumption that the economic man uses rational thought to make decisions and challenges his readers to rethink the way they view the simple, everyday choices made on a daily basis. After reading the book, he makes it obvious that we all unknowingly act predictably irrational, however he gives us the tools to overcome this and think and behave in a rational manner. Some of the major points discussed in the book include the truth about making decisions based on comparisons...
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...a dollar? hen it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we? In a series o f illuminating, often surprising experi ments, M I T behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with ground breaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. N o t only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predict able—making us predictably irrational. From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns o f thought to make better decisions. Predictably Irrational will change the way we interact with the world—one small decision at a time. 0208 DAN ARIELY is the Alfred P. Sloan Professor o f Behavioral E c o n o m i...
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...Human have inexplicable and “irrational behaviors” all the time (Ariely). However, is there an explanation for the reason behind those behaviors? What drives us to act immorally? Why do we rely on our intuitions so much? Dan Ariely, a professor of psychology and behavioral economist answers these vital questions in his TED speech. He believes that our moral code is “buggy” in terms of making decisions on something, such as cheating, lying or other actions. And sometimes a belief that drives people to make lapses in their judgement is their strong “intuitions”. To Ariely, intuition does not provide any immediate knowledge, but instead, it is just a gut feeling that sometime can lead to confusion of some facts. Dan Ariely, having experienced...
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...one is the Men’s Singles and the other is the Men’s Doubles. Both of these matches are for the gold medal between the two countries that will compete. The game had their officials. The referee, where in is the overall charge of the tournament. The umpire, where appointed, is in charge of the match, the court and its immediate surrounds. The umpire shall report to the referee. The service judge shall call service faults made by the server should they occur. A line judge shall indicate whether a shuttle landed 'in' or 'out' on the line or lines assigned. An official's decision is final on all points of fact for which that official is responsible. I first watched the game in Singles. It was a match between the representatives of China, Lin Dan with four wins and zero lose, and from Malaysia, Lee Chong Wei who had also four wins and no loses. Their umpire was Unang Sukardja from Indonesia. A badminton match commonly consists of up to three sets. The side that first reaches 21 points wins a set. For singles, one thing to be considered is, the player shall serve from, and receive in, the right service...
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...www.GetPedia.com Click on your interest section for more information : Acne q Advertising q Aerobics & Cardio q Affiliate Revenue q Alternative Medicine q Attraction q Online Auction q Streaming Audio & Online Music q Aviation & Flying q Babies & Toddler q Beauty q Blogging, RSS & Feeds q Book Marketing q Book Reviews q Branding q Breast Cancer q Broadband Internet q Muscle Building & Bodybuilding q Careers, Jobs & Employment q Casino & Gambling q Coaching q Coffee q College & University q Cooking Tips q Copywriting q Crafts & Hobbies q Creativity q Credit q Cruising & Sailing q Currency Trading q Customer Service q Data Recovery & Computer Backup q Dating q Debt Consolidation q Debt Relief q Depression q Diabetes q Divorce q Domain Name q E-Book q E-commerce q Elder Care q Email Marketing q Entrepreneur q Ethics q Exercise & Fitness q Ezine Marketing q Ezine Publishing q Fashion & Style q Fishing q Fitness Equipment q Forums q Game q Goal Setting q Golf q Dealing with Grief & Loss q Hair Loss q Finding Happiness q Computer Hardware q Holiday q Home Improvement q Home Security q Humanities q Humor & Entertainment q Innovation q Inspirational q Insurance q Interior Design & Decorating q Internet Marketing q Investing q Landscaping & Gardening q Language q Leadership q Leases & Leasing q Loan q Mesothelioma & Asbestos Cancer q Business Management q Marketing q Marriage & Wedding q Martial Arts ...
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...Demon Freaks is the ultimate guide on how studying can go horribly wrong. Tomorrow is the start of the SAT’s and identical twin brothers Bing and Ron Slaughter need to achieve great results in order to make it into a top-ranked college and eventually pursue their respective careers or be doomed to spend the rest of their lives working for McDonald’s, the same company that their parents work for. The twins decide to study with their two friends and fellow Ephits band members; the keyboard player Kaitlyn Krimpsen and the drummer of the band Prathamesh Kimitri aka Meat. They meet up at Meat’s cabin and from that point on things go horribly wrong. The teens end up having to spend the night fighting for their lives against a medley of strange creatures and an entire Golfers Association. I give Demon Freaks a rating of 3 out of 4, I would give it a 4 but it feels as if the climactic part of the whole story was rushed. There were a lot of elements in play at the time but one move brought it all to a close. It feels a bit anti-climactic. Also the way the author chose to number his chapters really got to me, instead of starting from Chapter 1 he started from Chapter 10 and moved up from there. To most people this probably won’t be an issue but for someone with OCD like me it just strikes a negative chord. I didn’t give it a 2 because the book is genuinely a great read, immensely funny and quite cleverly put together. The story moves along at a great pace with a steady introduction...
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...The Dan Rather scandal, also called “Memogate” is a scandal surrounding the 60 Minutes story aired on CBS September, 8th, 2004 just a few weeks before the presidential election. The scandal surrounded George W. Bush's time while in the National Guard service. In the scandals there were memos that provided information about claims that were supposedly created in 1973. They were found in the files of Lieutenant Colonel Jerry B. Killian, who died in 1984 (2004, para.1). Experts and bloggers investigated documents which were made available to the public on the CBS website, and found them to be poor forgeries created on a modern era word. Four CBS employees lost their jobs over the report. Dan Rather defended the report, claiming the memos might be "fake, but accurate" and later went into early retirement. The scandal started when Mary Mapes told her superiors that the information was authenticated by four experts she had consulted, but neither of them could tell that it was fake or not because they were copies. Major Bobby Hodges also confirmed that the continents in the documents were true but he later told the panel he never did. Bobby Hodges then told Dan Rather’s that the documents were ok and that then gave Rather’s the green flag to proceed with the live televised show even though they were not sure of the validity of the documents. Their findings were contained in a 224-page report made. While the panel said it was not prepared to brand the Killian documents as an outright...
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...of stores grew to 26. In 1988 they expanded to northern California. The combination of innovative products along with a service-oriented culture has created a loyal customer base that continues to grow nationally. Today, TJ has over 270 stores in 22 states with revenues exceeding $5 billion. Coulombe sold the business in 1978 to the Albrecht family, owners of a multi-billion dollar retail chain in the EU. However, the company remains private. The Albrechts are passive investors—operating control was left in Joe’s hands who continued as CEO until he retired in 1988. John Shields, whose background includes retail and merchandising, and who provided the operational know-how to expand the business, became CEO, a position he held until 2001. Dan Bane is the current CEO. Trader Joe’s offers an array of products that are distinct from those sold in traditional supermarkets. They do not carry national brands, but rather a host of food and beverage products along with a number of healthcare selections. Products include cheese, wine, ready-to-prepare foods, frozen items, produce, and ethnic choices, of which 75 percent carry the Trader Joe’s label. Most products are offered at low prices (which differentiates Trader Joe’s from competitors such as Whole Foods and Bristol Farms) but are considered to be of high quality, both in terms of taste and healthfulness. Because their stores are generally in the 15,000 square foot range, Trader Joe’s offers about five times fewer products than conventional...
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...FOR BLYTHE Acknowledgments My profound thanks to three dear friends with whom I have the great luxury of working: my editor, Jason Kaufman; my agent, Heide Lange; and my counselor, Michael Rudell. In addition, I would like to express my immense gratitude to Doubleday, to my publishers around the world, and, of course, to my readers. This novel could not have been written without the generous assistance of countless individuals who shared their knowledge and expertise. To all of you, I extend my deep appreciation. To live in the world without becoming aware of the meaning of the world is like wandering about in a great library without touching the books. The Secret Teachings of All Ages ———————————— FACT: In 1991, a document was locked in the safe of the director of the CIA. The document is still there today. Its cryptic text includes references to an ancient portal and an unknown location underground. The document also contains the phrase “It’s buried out there somewhere.” All organizations in this novel exist, including the Freemasons, the Invisible College, the Office of Security, the SMSC, and the Institute of Noetic Sciences. All rituals, science, artwork, and monuments in this novel are real. ———————————— Prologue House of the Temple 8:33 P.M. The secret is how to die. Since the beginning of time, the secret had always been how to die. The thirty-four-year-old initiate gazed down at the human skull cradled in his palms. The skull was hollow, like...
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...Dan Scott Paul Johansson * Influences * Family- Dan’s parents seem to be harder on him than his brother Keith. They always pushed him to be better at sports especially basketball. His wife was an alcoholic and a drug addict, once tried to kill him in his car dealership by drugging him and the lighting it on fire. He has two biological sons and only cared about the younger one, most likely because he married his mother. His older brother, Keith, was more of a father to his older son, Lucas, than he was. People in Tree Hill seemed to like Keith more than Dan because Keith was friendlier to people than Dan. * Friends- Dan didn’t really have any friends because he was rude to everyone. Even his workers hated him, and his children, wife, brother, and Karen, the mother of his first born. * Environment- Tree Hill, North Carolina is a small town; everyone knows everybody and knows everyone’s business. In the show One Tree Hill, Dan becomes mayor after running against Karen in season 3 and shortly after Deb, his wife, flees Tree Hill after Lucas tells her he knows she is the one who set the fire to try to kill Dan. * Defense Mechanism * Repression- Repression is the defense mechanism that removes anxiety-arousing thoughts, feelings, and memories from ones consciousness. An example of this defense mechanism used in One Tree Hill is Dan was jealous of Keith, and in the third season there was a school lockdown, one of the students brought in a gun and...
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...Name Professor Course Date Film project contrast paper Introduction Captain Phillips movie, examines the 2009 hijacking of a U.S container ship, by the name Maerks Alabama. The movie stars Tom Hanks as Richard Phillip (IMDb). It is a hard pounding thriller that exhibits the creativity of its director Paul Green Grass. According to Ryan McNeil (2013) the movie reflects on the primary effects of globalization, by showing the relationship between the ship's commanding officer and the Somali captain who forcefully held him (McNeil). Richard Phillips meets with Muse; the Somali captain, when Phillips ship goes on a wrong course (IMDb). Both captains find themselves at the mercy of forces, which are beyond their control. The movie is recommended for audience above the age of thirteen years. It contains an intense sequence of menace, and violence associated with bloody images (IMDb). The script The script of the movie was primarily based on a book called A Captains Duty: Somali Pirates, Navy Seals and Dangerous Days at Sea, which was written by Richard Phillips (IMDb). The script narrates a very compelling story, which keeps the audience on the seat's edge. It moves the audience in the world of the ship’s crew, leaving the audience with a close experience of the dangers associated with cargo ships (McNeil). Acting Tom Hanks is considered as the highest box office star currently (Whitfield). According to IMDb, he was “outstanding as always” in this movie. However critics have argued...
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