positive irrationality. How to capitalize on your illogical actions

This book was first mentioned in an interesting article for me, "Subconscious Mistakes of Our Brain". There was a mention in the text of some excerpts taken from Dan Ariely's books on Behavioral Economics and the book "Positive Irrationality".

To be honest, I was rarely interested in social sciences, because the range of my interests lies in the study of natural sciences, but the article hooked me so much that I wanted to read these books. Unfortunately, the book "Behavioral Economics" was not found in the public domain, so for now I limited myself to the book "Positive Irrationality. How to benefit from our illogical actions", which will be discussed in this review.

Before I begin to describe the book, I would like to say a little about its author. I would omit this item, but I would like to shake hands with this person, firstly for his scientific work, and secondly for his stamina and patience, which helped him undergo a course of treatment after a difficult injury.

If you find pictures of him on the Internet, you will see extensive burns on his face and hands. I think to some extent this influenced his specialization.

When Dan was 18, in his senior year of high school, he suffered third-degree burns to 70% of his body from an accidental magnesium explosion.

Now he is a professor not only in his field, but also studies other sciences and is well versed in physics and mathematics. But fame brought him his research, which later formed the basis of books. He even has his own website.

2. ABOUT THE BOOK

Why was it necessary to mention some events from the author's biography? It's just that this part of his life is just mentioned in the book, and that's where it begins.

More precisely, the author begins with how he programmed his brain not to give up in a difficult situation, but to go through a full course of painful treatment. This is how we meet Dan in the first chapter. But that's all, the author focuses only at the beginning on his life experience related to trauma, then we are talking about his research.

How is the text structured?

The book is told in an unusual way. First, a hypothesis is put forward, then Dan describes a specific experiment that was supposed to refute or confirm this hypothesis, and then draws conclusions. And so on until the end.

Well, since the author is a professor of psychology, then the experiments are from the same area. More specifically, they are related to the study of how our brain works. This is of course a strong word. The methods were simple - studying the behavior of people in certain circumstances and explaining this behavior.

In each of his experiments, he and his assistants recruited test groups, explained the rules of the experiment (of course, they did not lay out all the cards for them), and then calculated the results.

Here's what's really interesting! If, for example, due to my experience of communicating with different people, I have already learned to predict people's reaction to this or that influence, I will even say more that in many ways I myself do the same. I can’t explain my own actions and the actions of other people. And here everything is laid out on the shelves, but if we know the nature of this or that behavior, then it means that we can control it in the future!

I was most impressed by the chapter that describes the reasons why people want to take revenge. It turns out that the whole thing is in the structure of our brain, and the pleasure that it receives at the moment when "justice" triumphs

Experience on primates only confirmed the biological nature of the feeling of revenge. Sometimes the desire to punish injustice can be so strong that we often act to our detriment.

Where do people show sympathy for one, and why are we cold to the global problems of mankind.

Our compassion is activated only when we know more details about a particular person who needs help. After all, as Stalin said:

The death of one person is a tragedy, the death of millions is a statistic

True, this phrase is used here in a different context.

The phenomena of decision-making based on emotions are explained in an interesting way and what consequences this may entail.

No, it's obvious that you always need to make decisions on a sober head, but I never thought that I suffered most of my failures because of excessive emotionality. All the same, in serious matters it is better to trust cold-blooded calculation, and not intuition.

CONCLUSION

Of course, these are not all cases, a lot more interesting things can be learned about our behavior, the influence of incentives on performance, relationships with each other, emotionality, feelings of justice, and also, is there really a difference between the actions of men and women (such an experiment is being conducted).

The text is written easily, accessible to everyone, there are not so many terms, and those that are are explained and understandable. It is read in one breath, I read it in a week (but I read it only in the subway on the way to and from work, and sometimes during lunch breaks). The electronic version is available both for download and for reading online.

POSITIVE IRRATIONALITY

How to capitalize on your illogical actions


Introduction. Lessons of Procrastination and Medical Side Effects
Chapter 1 Paying More for Less: Why Big Bonuses Don't Work
Chapter 2
Chapter 3 The IKEA Effect: Why We Tend to Overvalue What We Do
Chapter 4
Chapter 5. Let's talk about revenge: what makes us seek justice?
Chapter 6
Chapter 7 Hot or Not: Adaptation, Assortative Crossbreeding, and the Beauty Market
Chapter 8 When the Market Fails: The Case of Online Dating
Chapter 9
Chapter 10
Chapter 11

From the partner of the Russian edition - NEO Center Consulting Group

We are all very busy. The rhythm of life is accelerating, the requirements for the results of work are growing, the conditions are becoming tougher. We barely have time for anything other than business.

And if we manage to find time to read - this should be a book that is really worth it. Is not it?

Why read a book that talks about... our irrationality? About strange, “stupid” and illogical acts that we, adults, reasonable people, do every now and then at work, at home, in our personal lives? And why do we, consultants, advise you to prefer it to others?

For three very rational reasons.

Reason one. She is extremely knowledgeable. You have no idea how much new and interesting we hide in ourselves - even if we have known ourselves for quite a long time. The subject has been studied seriously and deeply, with the use of large-scale experiments. After reading the book, you will know yourself and others much better and will be able to correct something in time.

The second reason. The findings of behavioral economics (namely, this area of \u200b\u200beconomics studies the mechanisms underlying our actions) are a very valuable business tool. For any area of business: from marketing and personnel management to finance and PR.

Not to mention the relationship with the most important person for business - with the client. Knowledge of the laws of human nature, especially the hidden laws, provides an incredible competitive advantage.

Finally, the third reason. The book is called "Positive Irrationality" for a reason. You will see that our irrationality is not always a bad thing. It is thanks to her that we live a full life - we love children, trust each other, and enthusiastically take on a difficult task. And, perhaps, the most daring discoveries and the loudest breakthroughs happened because their authors allowed themselves to be different from everyone else and act a little more irrationally than is customary.

positive irrationality. How to capitalize on your illogical actions

Dan Ariely is one of the leading behavioral economists. Today he teaches at Duke University (USA) and is also the founder of the Center for Advanced Hindsight.

Using simple experiments, Dan Ariely studied how people actually act in the market and compared their behavior to how they would act if they were completely rational. The subject of his research are such daily actions as buying and not buying, saving and extravagance, ordering food in restaurants, procrastination, dishonesty and decision-making under the influence of various emotional states. The results obtained were simply stunning. They literally challenged the concept of human rationality as a key idea of modern economics. According to the findings of the researcher, many of our actions are absolutely irrational. We act according to the same scenarios that are not obvious to ourselves and others. We are predictably irrational!

The study was published in leading scientific journals in psychology, economics, marketing and management, and was also repeatedly mentioned on the pages of such publications as The New York Times, The New Yorker Magazine, The Washington Post, The Financial Times, etc. Irrationality” summed up the entire experience of the author and instantly became a bestseller. More recently, Dan Ariely has completed work on a new book, Perfectly Irrational: The Unexpected Ways We Defy Logic at Work and at Home.

In fact, the mechanisms developed by mankind in the process of evolution made sense only in the old days. But given the gap between the speed of technological development and human evolution, the instincts and abilities that used to help us now begin to interfere with us. Making the wrong decisions, which in the past could cause us minor inconvenience, is now beginning to have the most significant impact on our lives. When the creators of modern technologies fail to recognize the human tendency to make mistakes, they begin to create new and "improved" systems in the fields of the stock market, insurance, education, agriculture or health care that do not take into account the limitations inherent in us (I call these technologies " incompatible with man”, and their traces can be seen everywhere). As a result, we end up making inevitable mistakes, and sometimes our failure is accompanied by noise and crackling.

At first glance, such an assessment of human nature looks depressing, but things are not so bad. Behavioral economists want to understand the roots of human weakness and find more compassionate, realistic, and effective ways for people to avoid temptation, exercise more self-control, and ultimately achieve their long-term goals. It can be extremely beneficial for society as a whole to understand how and when we fail, which then allows us to create new ways to overcome our mistakes. When we begin to better understand what is really driving our behavior and what is diverting us (whether it is business decisions related to reward or motivation, or personal issues related to finding happiness or a partner), we will be able to better control our money. , connections, resources, safety and health - both for themselves personally and for society as a whole.

This is the true purpose of behavioral economics: if we understand how we actually act, then we can more readily examine our own biases, better understand how they affect us, and, therefore, we can accept the best solutions.

Why does increasing pay reduce our productivity?

Why do we tend to overestimate what we do?

Why is it so important for us to take revenge on the offender at all costs?

We are confident that we act logically, strive to maximize our benefits and minimize risks, make the most correct and useful decisions for ourselves and respond to what is happening in ways that have a reasonable and logical explanation. Is not it? No matter how. Face it, we reject logic at work and at home, in the most unexpected ways. And “if we understand how we actually act, we can more readily examine our own biases, better understand how they affect us, and therefore we can make better decisions,” says MIT professor Dan Ariely, Behavioral economist who has long studied the irrational side of human nature.

In this book, he focused on the positive aspects of our irrationality - those moments that work for our good. It is thanks to positive irrationality that we get used to new conditions of life, love loved ones, enjoy work and win the trust of others. Unexpected and surprising results of experiments, perhaps, will confirm what you vaguely guessed, and the author's conclusions will show how to use your "oddities" correctly.

publishing house MANN, IVANOV AND FERBER

No part of this book may be reproduced in any form without the written permission of the copyright holders.

Legal support of the publishing house is provided by the law firm "Vegas-Lex"

VEGAS LEX © Dan Ariely, 2010

From the partner of the Russian edition - NEO Center Consulting Group

And if we manage to find time to read - this should be a book that is really worth it. Is not it?

For three very rational reasons.

This book will convince you to think differently about irrationality. Having met something “out of this world”, strange, ridiculous, you will not brush it off in irritation, but take a closer look with curiosity. Maybe take it on board. And chances are you'll be successful...

Valery Esaulenko, General Director of NEO Center Consulting Group

Thank you to my teachers, colleagues, and students for tirelessly showing me an interesting and exciting part of the research process. Thanks to those who have participated in our experiments all these years. You - the driving force behind our research, and I deeply appreciate your help.

The Upside of Irrationality: The Unexpected Benefits of Defying Logic

Introduction. Lessons of Procrastination and Medical Side Effects

I don't know about you, but I've never seen a man who wasn't prone to procrastination. The desire to put off the solution of unpleasant issues until later is truly a universal problem. It is incredibly difficult to deal with - no matter how hard we try to use internal forces and self-control, or how many times we decide to approach this problem in a new way.

Interpreter P. Mironov

Chief Editor S. Turco

Project Manager M. Krasavina

Correctors N. Vitko, E. Aksenova

Computer layout A. Abramov

Cover design Y. Buga

This edition published by arrangement with Levine Greenberg Rostan Literary Agency and Synopsis Literary Agency

All rights reserved. This e-book is intended solely for private use for personal (non-commercial) purposes. The e-book, its parts, fragments and elements, including text, images and others, may not be copied or used in any other way without the permission of the copyright holder. In particular, such use is prohibited, as a result of which an electronic book, its part, fragment or element becomes available to a limited or indefinite circle of persons, including via the Internet, regardless of whether access is provided for a fee or free of charge.

Copying, reproduction and other use of an e-book, its parts, fragments and elements that go beyond private use for personal (non-commercial) purposes, without the consent of the copyright holder, is illegal and entails criminal, administrative and civil liability.

Thank you to my teachers, colleagues, and students for tirelessly showing me an interesting and exciting part of the research process.

Thanks to those who have participated in our experiments all these years. You are the driving force behind our research, and I am deeply grateful for your help.

Introduction

Lessons of Procrastination and Medical Side Effects

Eight years later, when I was already graduating from university, the disease dealt me another hard blow. It was then that I underwent an examination at the student medical center, several times I donated blood for tests, and the doctors finally diagnosed me. I was sick with hepatitis C, which medical science has only recently learned to identify and diagnose. Although I felt rather lousy, this news seemed good to me. First, I finally found out what exactly was sick. Secondly, the doctors had a promising new experimental drug called interferon that seemed to be effective in treating hepatitis C. My doctor asked me if I would like to take part in a pilot study to study the effectiveness of interferon. Given the fact that I had a real chance of developing fibrosis or cirrhosis of the liver, as well as dying at an early age, participation in the experiment looked like the lesser of two evils.

According to the initial conditions of the experiment, the participants in the study had to do self-injections of interferon three times a week. The doctors told me that after each injection I would experience the symptoms usually associated with the flu: fever, headache, nausea and vomiting. Very quickly I realized that they were not exaggerating at all. But I was determined to overcome the disease, so every Monday, Wednesday and Friday for a year and a half I did the same nightly ritual: when I got home, I took a needle from the medicine cabinet, opened the refrigerator, filled the syringe with a dose of interferon, and then stuck the needle deep into the thigh . Then I would lie down in a large hammock (the only interesting piece of furniture in my college campus) that was comfortable for watching TV. I kept a bucket within reach to deal with the imminent vomiting, and a blanket at my feet to help fight the chills. After about an hour, nausea, chills, headaches set in, and after a while I could fall asleep. By noon the next day, I was more or less recovered and could return to my studies.

Like other participants in the study, I struggled not only with painful symptoms, but also with more significant problems: procrastination and lack of self-control. I hated every day that I had to take injections. Each time I was presented with a picture of the subsequent 16-hour bout of illness. I only hoped that the current torment would allow me to recover in the future. I had to experience what psychologists call a negative immediate effect for the sake of a positive effect in the long run. It is this type of problem that we face when we are unable to complete our current tasks in the name of the good that lies ahead of us. Despite the voice of conscience, most of us will choose not to do something unpleasant now (exercise, work on an annoying project, or clean the garage) for the sake of a better future (a healthy body, a promotion, or gratitude from a spouse).

At the end of the 18 long months of testing, the doctors informed me that I was the only patient who took interferon regularly according to the prescribed schedule - all the other participants in the study repeatedly skipped taking the drug. Given the unpleasant side effects, this was not surprising. (Not following doctors' advice is indeed a common problem.)

How did I manage to get through these months of torture? Maybe my nerves were as strong as steel ropes? I, like every other inhabitant of our planet, have significant problems with self-control, and every time the day of the injection came, I sincerely wished to postpone this procedure. But I came up with one trick that allowed me to ease the pain a little. Salvation for me was ... cinema. I love watching movies and if I had time, I would indulge in this activity every day. When the doctors told me what to expect from the experiment, I decided to motivate myself by watching movies. (Besides, because of the side effects, I probably wouldn't have been able to do anything else.) On those days when I needed to give myself another dose, I went to the store in the morning, chose a few paintings, and spent the rest of the day thinking about what a pleasure I will experience in the evening, watching one movie after another.

Portal for the student. Self-training

POSITIVE IRRATIONALITY

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