Predictably irrational book sum up

Cover of "Predictably Irrational: The Hid...
Cover via Amazon
Predictably irrational is a book about behavioral economics, judgement and decision making.
I recommend you to have a look at it.

Some take aways:

If no choice no buy, people need alternatives, relativity.
Most people don't know what they want unless they see it in context.

We feel poor or rich comparing ourselves to other till we decide to stop comparision
Meaning you'll always be poorer than somebody else, thus trying to be as rich as this person, until you decide you don't really care.
The only cure : break circle of relativity because the more we have the more we want.

7 dollar: is it important?

Saving 7 doll is important on a 20 doll purchase but it's a detail on a 700 purchase.
But it's still 7 dollars...

Why your last holoday's best friends are like strangers now:

Relativity of meeting with other people's context can explain strong connection (when you meet somedoby speaking your language at 7000km from home) but when context change, connection disappear.

To make a man covet a thing, make it difficult to attein.

Apple, LV, Hermes already know that...

When we see the price of smthg we anchor on it. Experience kill anchors.
Starbucks kill price anchor of Dunkin because he position differently, offering a 
different experience.
Starbucks is not more expensive than Dunkin, it's just different.

Why we are free stuff addicts?

Humans love free stuff because they hate loss eventuality and when it's free, no loss is possible.

But very low price are another pledge for humans, it woken up lizard brain
When someone offer you free candy, you take one, when it's 10 cents, you take a lot!

Last olive of the plate, the responsibility on common things parabole.
When a few people are around the table, it's easy to decide you will eat it.
When a lor of people are around the table. Nobody will take the responsibility of taking the last common olive.

Incentive vs Social. Incentive is not always the best solution.

When you transform social exchange (help) or social behavior (no pollution) with monetary ones, you kill social relationship and let rationalisation take control

We surevaluate what we have and are obsessed with loosing. Reptilian/lizard brain do that.
We fall in love with what we have, especially difficult to obtain/build things, Ikea effect, and aretotzlly afrais of loosing it.

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