The basis of economics is that we human are fully informed entities making completely rational decisions to maximise our personal interests. Join our ‘Brains Trust’ to get access to hidden bonus episodes: Want to win 48 books? Enter the competition: Grab a copy of Predictably Irrational here: ‘The hidden forces that shape our decisions’ This is an absolutely phenomenal book with wide-ranging applications. He shows how we are influenced by things like comparisons, arousal, price, ownership and our own expectations. More than that, Dan recognized that we are irrational in very PREDICTABLE ways – we all make the same kinds of mistakes. In many cases, we’re very IRRATIONAL: we make decisions that aren’t in our own best interest. But, as Dan Ariely points out, we’re NOT rational. They use this to form all of their economic theories and models. Economists start with the assumption that all humans are fully informed, rational decision makers.
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