The key insight of Predictably Irrational is that these aren't just random hiccups. Our irrationality is . This means that if you understand the hidden forces, you can anticipate when people will mess up—and perhaps even correct the course.
But here is the scary part: When the reward is non-monetary (taking a pen from work), we cheat just as much. When the "crime" is one step removed (cheating with tokens that are then exchanged for cash), we cheat more. We abstract the dishonesty away from our conscience. Predictably Irrational - The Hidden Forces That...
The price of zero causes us to react irrationally. While most transactions have an upside and a downside, the word makes us forget the downsides entirely. The key insight of Predictably Irrational is that
When making a purchase, strip away the comparisons. Ask yourself: If this were the only option available, would I still pay this price? But here is the scary part: When the
We cheat up to the point where we can still rationalize our behavior. We tell ourselves, "Everyone does it," or "The system is rigged anyway," or "It's only a few dollars."
Once we own something, we begin to value it more than it’s actually worth. We focus on what we might lose rather than what we might gain. This is why "money-back guarantees" are so successful—marketers know that once the product is in your house, you’ll "own" it psychologically and find it nearly impossible to give up. 6. The Effect of Expectations