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Predictably Irrational
By Dorte | November 11, 2008
Who said economics couldn’t be fun and interesting? Well, it can - especially if we are talking about behavioral economics. Professor Dan Ariely, a behavioral economist from MIT has written the book with the intriguing title “Predictably Irrational” (link).
In his book Dan Ariely clearly demonstrates that we are making irrational decisions to a much larger extent that we would like to think. Have you ever driven across town to save a few bucks on some favourite brand commodity? And not considering that the few saved bucks are outweighed by your expenditure on gas - not mentioning the extra time you’d spent?
But is it really possible that we get outsmarted by something irrational? According to Dan Ariely the answer is yes. He is of the opinion that we are actually strangers to ourselves - unable to predict how easily our minds will veer off course.
As a coach this is very interesting. Often we work with clients who want to make decisions about something important in their lives or businesses. To avoid irrational decisionmaking - or to counter it - it is important to uncover and clarify the core values of a client. Knowing and understanding the impact of having your core values fullfilled will help you guide through the decisions in your life. And hence have a better chance at outsmarting irrational decisions.
Topics: Coaching |
