What amount of pleasure will you be getting out of it? If you're planning on a purchase, ask yourself:
Start by becoming aware of our vulnerabilities. We can actively improve on our irrational behaviors. But could it be that the lives we have so carefully crafted are largely just a product of arbitrary coherence? Could it be that we made arbitrary decisions at some point in the past and have built our lives on them ever since, assuming the original decisions were wise? Is that how we choose our careers, spouses, clothes, and hairstyle? Were these just partially random first imprints that have run wild? Theory says we base these decisions on our fundamental values - our likes and dislikes. We decide whether or not to eat burgers, smoke, run red lights, marry, have children, vote Republican, etc. There are wealthy men who drive 4-horse passenger coaches 20-30 miles on a daily line in the summer because the privilege costs them considerable money, but if they were offered wages for the service, that would turn it into work, and they would resign. Play consists of whatever a body is not obliged to do. Work consists of whatever a body is obliged to do. Like Tom Sawyer's fence, he was able to take an ambiguous experience and make it into a pleasurable or painful experience. On average, they wanted $1.30, $2.70, $4.80 for short, medium, long reading. Those who answered the hypothetical question about being paid demanded payment. They offered, on average, $1, $2, $3 for short, medium, long reading. Those who answered the hypothetical question about paying him were willing to pay. Then he asked for the students to bid on the poetry reading. Before the auction, though, he privately asked half the students to write down whether, hypothetically, they would be willing to pay him $10 for a 10-minute poetry reading - and the other half to write down whether, hypothetically, they would be willing to listen to him recite poetry for 10 minutes if he paid them $10. Teacher said he was going to be reading Walt Whitman poetry that Friday evening, and due to limited space had to run an auction to determine who could attend. So different that we would not use the prices at Dunkin' Donuts as an anchor, but instead would be open to the new anchor that Starbucks was preparing for us. Starbucks did everything in its power to make the experience feel different.
Where everyone else had small, medium, large - Starbucks had short, tall, grande, venti, as well as drinks with high-pedigree names like Caffé Americano, Caffé Misto, and Frappuchino. Schultz worked diligently to separate Starbucks from other coffee shops, not through price, but ambience - to feel like continental coffeehouse. How did Starbucks charge more for coffee, then? If we were previously anchored to the prices at Dunkin' Donuts, how did we move our anchor to Starbucks? They spend what they were used to in the previous market, even sacrificing comfort. People who move from cheap to moderate cities don't increase their spending to fit the new market. People who move to a new city remain anchored to the prices they paid for housing in their former city. From then on, we are willing to accept a range of prices, but we will always refer back to the original anchor. They become anchors when we contemplate buying a product or service at that particular price. Important clarification: price tags themselves are not anchors. Once prices are established in our mind, they shape not only what we are willing to pay for an item, but also how much we are willing to pay for related products. Rome makes Rome look so good that you judge it to be even better than the difficult-to-judge Paris.Īrbitrary coherence.
#Arbitrary coherence free#
The comparison with the clearly inferior option makes Rome with the free breakfast seem even better. Now considering 3 options: Rome, -Rome, Paris. Offer a 3rd option : Rome without the free breakfast. The decoy effect : is is the secret agent in more decisions than we could imagine.įor vacation, choosing between Rome and Paris. Like an airplane pilot landing in the dark, we want runway lights on either side of us, guiding us to the place where we can touch down our wheels. We don't know what we want to do with our lives - until we find a relative or friend who is doing just what we think we should be doing.Įverything is relative, and that's the point. We don't know what kind of speaker system we like until we hear a set of speakers that sounds better than the previous one. We don't know what kind of racing bike we want until we see it in the Tour De France. Most people don't know what they want unless they see it in context. My favorite type of book: pointing out and understanding all of the counter-intuitive things people do. Go to the Amazon page for details and reviews. Predictably Irrational - by Dan Ariely | Derek Sivers Derek Sivers Predictably Irrational - by Dan Ariely
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