Neuroscience
The Independent newspaper recently featured an article and interactive quiz by behavioural economist Dan Ariely, the author of Predictably Irrational, about - you guessed it - how irrational we are.
Most articles or books on this topic begin by saying something about the way we generally view ourselves as consistent and logical, and about how traditional economics assumes we are rational decision-makers. But with behavioural economics thriving, and so many books being published showing that we're anything but rational, and instead prone to a series of intriguing heuristics and biases (Nudge, Mistakes were made but not my be, Why smart people make big money mistakes, A mind of its own, Intuition ... the list goes on), it makes me wonder how much longer it will be before our profound irrationality becomes common knowledge.
That said, this new article provides a neat round-up of some examples of how irrational we can be. For example, there's the seduction of things that are free:
Link to article.
Link to quiz.
Link to Predictably Irrational.
Post written by Christian Jarrett (@psych_writer) for the BPS Research Digest.
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Neuroscience
How predictably irrational are you?
The Independent newspaper recently featured an article and interactive quiz by behavioural economist Dan Ariely, the author of Predictably Irrational, about - you guessed it - how irrational we are.Most articles or books on this topic begin by saying something about the way we generally view ourselves as consistent and logical, and about how traditional economics assumes we are rational decision-makers. But with behavioural economics thriving, and so many books being published showing that we're anything but rational, and instead prone to a series of intriguing heuristics and biases (Nudge, Mistakes were made but not my be, Why smart people make big money mistakes, A mind of its own, Intuition ... the list goes on), it makes me wonder how much longer it will be before our profound irrationality becomes common knowledge.
That said, this new article provides a neat round-up of some examples of how irrational we can be. For example, there's the seduction of things that are free:
"We asked people to choose between an expensive Lindt truffle and a much cheaper equivalent, a Hershey's Kiss. When we set the price of the truffle at 15 cents and the Kiss at one cent, 73 per cent chose the truffle, and 27 per cent chose the Kiss.There's also a fun quiz which lets you gauge just how irrational you are. Apparently I hedge my bets, being neither wholly irrational or wholly rational. See how you do.
Then we offered the Lindt truffle for 14 cents and the Kisses for free. The humble Hershey's Kiss was still 14 cents cheaper – just as it had been – but suddenly it became a big favourite. 69 per cent chose the Kiss, forgoing the opportunity to get the Lindt truffle for a very good price."
Link to article.
Link to quiz.
Link to Predictably Irrational.
Post written by Christian Jarrett (@psych_writer) for the BPS Research Digest.
- Mixing Memory: Motivated Reasoning Ii: Are Political Partisans Irrational?
Mixing Memory: Motivated Reasoning II: Are Political Partisans Irrational? A detailed, expert debunking of neuromarketing in politics; sure to engage "the thinking part of your brain."...
- An Unwanted Kiss From A Moral Man. Still Feeling Dirty?
We know that physical sullying, immorality and shame can all be associated with feelings of bodily and mental dirtiness, but it's not entirely clear how all these things interact. For example, for a heterosexual woman, which is worse: having a kiss...
- Is Behavioural Economics Such A Big Deal?
The latest issue of Prospect magazine features a freely available, hard-hitting debate on whether or not behavioural economics is all its cracked up to be. Standard economics sees people as selfish, rational decision-makers. Traditional economic models...
- Nudging People Towards The Right Decisions
Time magazine has a review of a new book from the behavioural economist Richard Thaler and his colleague, the legal scholar Cass Sunstein, called Nudge: Improving Decisions About Health, Wealth and Happiness. This is the latest in a spate of books which...
- Mind Where You Sit - How Being In The Middle Is Associated With Superior Performance
If you’re going for a group interview, or if you want to make an impression in class, try to sit as centrally as you can – new research suggests observers tend to overestimate the performance of people located in the centre. Priya Raghubir and Ana...