Connecting organizations to their markets

Recommended Reading - Predictably Irrational

I just finished reading Predictably Irrational by Dan Ariely.  The book, which I had been meaning to read since it came out in 2008, has interesting insights from cover to cover.  Dan is part of a newish school of thought in economics called behavioral economics.  With traditional economics, people are assumed to make rational decisions based on the information they have on hand.  Behavioral ecomonics thinking challenges this rational decision making assumption. I was introducted to the concepts by one of my favorite Kellogg professors, Nabil Al-Najjar.

I especially appreciated the chapters on the value of FREE! as well as the one about people infer quality from price.  In the free chapter, Dan describes some great experiments performed with kids and halloween candy.  The price discussion shows how people think the quality of a good is different based on its price.  These kinds of value judgements are critical considerations for any business when pricing products.

Also, browse Dan's website too.  He posts great fresh content on his ongoing research. Loved the one from the other day about how google, based on its users actual searches, can show you the difference in what men and women are thinking.  Data aligns with my personal stereo types!