Predictably irrational : Dan Ariely

Takeways

1) Mention of money and you go down the market norms : he has argued that you should either approach people under market norms or under social norms- mixing the two will result in people working less efficiently. He shows that when people were requested to drag circles into a corner ( one of the experiments) they were equally effective when they were requested to volunteer ( for free) and when they were compensated fairly.  But when volunteering was combined with some compensation – people didn’t think that they are helping and making money on top of that. Instead they work half heartedly only as much as they think is fair enough according to the compensation they have been offered . In short hey switch over from the social norm to the market norm completely .  But they also found that people giving people gifts kept them in the social exchange world and away from the market world . Though any mention of the price of gift would bring them back to the market world . 3) we have an irrational compulsion to keep the doors open. What this does is that the doors which we should really have shut keep sapping  our energy and commitment away from the ones that should be left open  and because they drive us crazy. It’s important to make a conscious effort to close the doors that are no longer helpful. Because by focussing on unhelpful things we might be foregoing rather important things.

..To be completed

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