Predictably Irrational

If you are a programmer, you are bound to see the world and its inhabitants a bit different than most people, more inquisitive, not exactly more rational, but definitely searching for those building blocks. I used to think that was a handicap you just had to cope with, especially in social traffic, since discounting the richness that Humanity itself brings to the fore is usually frowned upon. That is, until I read Predictably Irrational by Dan Ariely. The author demonstrates that Man's mind might be easier to program than a Java Enterprise application, something which I wager will be agreed upon by NLP students out there.

The books shows us that:
- Man is great at comparing things; things which are great but cannot be compared are doomed to fade away
- Man chooses that which is Free; even when a rational human being would choose a more sensible option
- Man anchors new things at a fixed value; the new thing is valued and will forever after gravitate around that value
- Man does not mix social and monetary currency; if something is done on a social basis, monetary compensation devalues it
- Man is beyond reason in heat; despite what people think of themselves, they go much, much further when in a state of arousal
- Man is a procrastinator; if something can be delayed, it will be and sometimes an authority to prod and stir is a good thing
- Man values that which he owns; it will be traded more expensively than its actual worth
- Man does not burn boats; bet hedging is deeply ingrained in our psyche, even when it is not beneficial to do so
- Man lets expectation determine reality; that which is expected as an outcome shapes the actual outcome, not only in the mind, but in the body as well
- Man values that which is expensive; for a certain thing bestowing an effect, its effect will be greater when it is more expensive

Being practical, I think the following would be valuable for a company to adopt:
- on offering a product, make sure a comparable (albeit inferior) product is offered -- if it is a competing product, include it as part of your message
- include something nice for free
- if you want your company to be social, align it so all the way (and forget about demoralizing and demeaning reorganizations -- good companies do not reorganize, they prune ALL the time)
- do not make your product too cheap (every Marketing student will tell you this anyway)
- make it easy for your boat not to be burned (eg, customers who leave can keep their data in your system for free)
- challenge each other vigorously (ban out the procrastinator in yourself!)

A good read, definitely worth spending some time on if you are interested in what makes you tick.