![]() We just judge the extra cost by putting it next to our base purchase. Does the utility of money change with context? Of course not. For example, the same person who travels 15 mins to buy slightly cheaper groceries from a store farther away, will probably not hesitate in spending an additional few thousands on the purchase of a new car. These comparisons lead us to questionable decision making where economic theory assumptions of our rationality fall apart. Our minds are wired to compare and we rigorously do so, anything and everything we can. But probably not quite in the manner as we sub-consciously do. The narrative is not an academic one, it’s more of a personal story, arguably even autobiographical in tone, where Dan skips through multiple experiments like a kid in a candy store while explaining the rationale behind their setting and giving insights into human behaviour. Of all the books I’ve read, this is the most complete introduction of the field I’ve come across. ![]() ![]() ![]() Dan Ariely is one of the foremost visionaries of the modern world view in Behavioural economics, and through this book he breaks down the motive and nitty grittes of the field without initimidating the reader. Behavioural economics is an area of research that looks closely at gaps in standard economic models when it comes to explaining human behaviour, which is often erratic and unpredictable from an economic point of view. ![]() This particular book is special because it’s very closely related to my research. ![]()
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