Index gifts: Burning Man based on exchange of, 86-88 cash vs., as employee reward, 82-83 mere mention of money and, 73—74 social vs. market norms and, 72-74 Gneezy, Uri, 76-77 Gone with the Wind, 150 Goode, Miranda, 74-75 Google, 83 goslings, imprinting in, 25, 34, 43 government: social contract between citizens and, 84 see also Congress, U.S. gridlock, legislative, 151, 152 Guidelines for Lawyer Courtroom Conduct (Sweeney), 213 guilt, social norms and, 77 H habits: first decisions translated into, 36-38 questioning, 44 Halloween experiment, 56-58 Hamlet (Shakespeare), xviii-xix, 232 Harvard Business School, 197-98 honesty experiment at, 198-202 health care, 110-11 bundling of medical tests and procedures and, 119-21 defeating procrastination in, 117-21 FREE! procedures and, 62-63 mandatory checkups and, 118 placebo effect and, 173-94; see also placebo effect price of medical treatments and, 176, 180-87, 190 public policy and spending on, 190 scientifically controlled trials and, 173-76 self-imposed deadlines and, 118-19 helping, thinking about money and, 74, 75 herding, 36-38 self-herding and, 37-38 Heyman, James, 69-71, 136, 262-63 HIV-AIDS, 90 Holy Roman emperors, placebo effect and,188 Home Depot, 78 Honda, 120,121 honesty, 195-230 contemplation of moral benchmarks and, 206-9, 213 dealing with cash and, 217-30 importance of, 214-15 as moral virtue, 203 oaths and, 208-9, 211-13, 215 reward centers in brain and, 203, 208 Smith's explanation for, 202, 214 superego and, 203-4, 208 see also dishonesty Hong, James, 21 honor codes, 212-13 hormones, expectation and, 179 house sales: anchoring and, 30-31 relativity and, 8-9, 19 value in owner's eyes and, 129, 135 I ice cream, FREE!, time spent on line for, 61 "Ikea effect," 135 imprinting, 25, 34, 43 see also anchoring indecision, 151-53 individualism, 68 thinking about money and, 74, 75 ingredients, exotic-sounding, 164-65 insurance fraud, 196, 223 internal mammary artery ligation, 173-74, 191 inventiveness, 68 IRA (Irish Republican Army), 156-57 Iran, lack of trust in, 215 irrational behaviors, xix-xx opportunities for improvement and, 240-44 systematic and <strong>predictable</strong> nature of, xx, 239 see also specific topics 1RS (Internal Revenue Service), 196 274
Index J Japan, savings rate in, 109 jealousy, comparisons and, 15-19 Jobst suit, 192-94 Johnston, David Cay, 204 judgment and decision making (JDM), xviii see also behavioral economics "Just say no" campaign, 100,101 K Kahneman, Daniel, 19,129 knee surgery, arthroscopic, 174-76 Knetsch, Jack, 129 Koran, 215 L Latin America, lack of trust in, 214 Lay, Kenneth, 219 Leaves of Grass (Whitman), 40-41 Lee, Leonard, 21, 157-59, 161, 263 legal profession: attempts at improving ethics of, 213-14 decline of ethics and values in, 209-10 leisure, blurring of partition between work and, 80, 81 Leland, John, 122-23 Leo III, Pope, 188 Levan, Jonathan, 231-37, 263 Li, Jian, 166-68 Lincoln, Abraham, 177 Linux,81 lobbyists, congressional restrictions on, 205 Loewenstein, George, 21, 26, 30-31, 39, 89, 263-64 Lorenz, Konrad, 25, 43 loss: aversion to, 134,137,138,148-49 fear of, 54-55 loyalty: in business-customer relations, 78-79 of employees to their companies, 80-84 M Macbeth (Shakespeare), 188 major, college students' choice of, 141-42 manufacturer's suggested retail price (MSRP),30,45 marketing: high price tag and, 24-25 hype of, related to satisfaction derived from product, 186-87, 190-91 relativity and, 1-6, 9-10 "trial" promotions and, 136-37 zero cost and, 49-50 market norms, 67-88 companies' relations with their customers and, 78-80 companies' relations with their employees and, 80-84 doing away with, 86-88 education and, 85 mere mention of money and, 73-75 mixing signals of social norms and, 69, 73-74,75-77, 79, 214 reducing emphasis on, 88 social norms kept separate from, 67-69,75-76, 77-78 willingness to risk life and, 84 working for gifts and, 72-74 working under social norms vs., 69-72 Maryland Judicial Task Force, 210 Mazar, Nina, 196-97, 206, 219-20, 224,264 McClure, Sam, 166-68 Mead, Nicole, 74-75 medical benefits, recent cuts in, 82 medical care, see health care medical profession: decline of ethics and values in, 210 salaries of, as practicing physicians vs. Wall Street advisers, 18-19 memory of previous prices, price changes and, 46-47 Mencken, H. L., 18 menu pricing, in restaurants, 4 Mills, Judson, 68 mistakes, repeated, and failure to learn from experience, xvii MIT Sloan School of Management, 92 275
- Page 3 and 4:
USA $25.95 CANADA $27.95 • Why do
- Page 5:
Predictably Irrational—it's not w
- Page 9 and 10:
predictably irrational The Hidden F
- Page 11:
To my mentors, colleagues, and stud
- Page 14 and 15:
contents CHAPTER 4 The Cost of Soci
- Page 17 and 18:
Introduction How an Injury Led Me t
- Page 19 and 20:
introduction sion of a large magnes
- Page 21 and 22:
introduction profoundly changed my
- Page 23 and 24:
introduction my results, in the hop
- Page 25 and 26:
introduction confusing them. We can
- Page 27 and 28:
introduction As YOU WILL see in the
- Page 29:
predictably irrational
- Page 32 and 33:
predictably irrational I read these
- Page 34 and 35:
predictably irrational Which one wo
- Page 36 and 37:
predictably irrational Would the st
- Page 38 and 39:
predictably irrational incredulousl
- Page 40 and 41:
predictably irrational the three op
- Page 42 and 43:
predictably irrational Allen with h
- Page 44 and 45:
predictably irrational nary student
- Page 46 and 47:
predictably irrational It was for g
- Page 48 and 49:
predictably irrational pushing towa
- Page 50 and 51:
predictably irrational your suit. Y
- Page 53 and 54:
CHAPTER 2 The Fallacy of Supply and
- Page 55 and 56:
the fallacy of supply and demand Sa
- Page 57 and 58:
the fallacy of supply and demand an
- Page 59 and 60:
the fallacy of supply and demand Av
- Page 61 and 62:
the fallacy of supply and demand Te
- Page 63 and 64:
the fallacy of supply and demand we
- Page 65 and 66:
the fallacy of supply and demand so
- Page 67 and 68:
the fallacy of supply and demand Bu
- Page 69 and 70:
the fallacy of supply and demand Wh
- Page 71 and 72:
the fallacy of supply and demand an
- Page 73 and 74:
the fallacy of supply and demand wa
- Page 75 and 76:
the fallacy of supply and demand we
- Page 77 and 78:
the fallacy of supply and demand Th
- Page 79 and 80:
CHAPTER 3 The Cost of Zero Cost Why
- Page 81 and 82:
the cost of zero cost has huge impl
- Page 83 and 84:
the cost of zero cost To replicate
- Page 85 and 86:
the cost of zero cost decision—th
- Page 87 and 88:
the cost of zero cost one of the ki
- Page 89 and 90:
the cost of zero cost tomer bought
- Page 91 and 92:
the cost of zero cost broke—but t
- Page 93 and 94:
the cost of zero cost checks, diabe
- Page 95:
the cost of zero cost pected pleasu
- Page 98 and 99:
predictably irrational up red-faced
- Page 100 and 101:
predictably irrational In this expe
- Page 102 and 103:
predictably irrational that this wa
- Page 104 and 105:
predictably irrational even a small
- Page 106 and 107:
predictably irrational Yes, your da
- Page 108 and 109:
predictably irrational or to watch
- Page 110 and 111:
predictably irrational line—you m
- Page 112 and 113:
predictably irrational all, people
- Page 114 and 115:
predictably irrational trust? What
- Page 116 and 117:
predictably irrational education an
- Page 118 and 119:
predictably irrational The answer,
- Page 120 and 121:
predictably irrational were smack i
- Page 122 and 123:
predictably irrational darkened roo
- Page 124 and 125:
predictably irrational keys on the
- Page 126 and 127:
predictably irrational of erotic pi
- Page 128 and 129:
predictably irrational gaze back at
- Page 130 and 131:
predictably irrational unfamiliar?
- Page 132 and 133:
predictably irrational carrying a c
- Page 134 and 135:
predictably irrational be similar t
- Page 136 and 137:
APPENDIX: CHAPTER 5 A complete list
- Page 138 and 139:
predictably irrational TABLE 3 RATE
- Page 140 and 141:
predictably irrational had to have
- Page 142 and 143:
predictably irrational do family tr
- Page 144 and 145:
predictably irrational same experim
- Page 146 and 147:
predictably irrational deadlines at
- Page 148 and 149:
predictably irrational check, which
- Page 150 and 151:
predictably irrational the best way
- Page 152 and 153:
predictably irrational Savings We c
- Page 154 and 155:
predictably irrational Dear Sumi, T
- Page 156 and 157:
predictably irrational self-control
- Page 158 and 159:
predictably irrational outside the
- Page 160 and 161:
predictably irrational instance, si
- Page 162 and 163:
predictably irrational "All right,"
- Page 164 and 165:
predictably irrational Suppose you
- Page 166 and 167:
predictably irrational still the to
- Page 168 and 169:
predictably irrational idea—wheth
- Page 170 and 171:
predictably irrational antithetical
- Page 172 and 173:
predictably irrational likely end u
- Page 174 and 175:
predictably irrational the correspo
- Page 176 and 177:
predictably irrational this wasn't
- Page 178 and 179:
predictably irrational waste their
- Page 180 and 181:
predictably irrational game. It wil
- Page 182 and 183:
predictably irrational Here's anoth
- Page 185 and 186:
C HAPTE R 9 The Effect of Expectati
- Page 187 and 188:
the effect of expectations to such
- Page 189 and 190:
the effect of expectations Mina and
- Page 191 and 192:
the effect of expectations will be
- Page 193 and 194:
the effect of expectations get rid
- Page 195 and 196:
the effect of expectations by chang
- Page 197 and 198:
the effect of expectations the way,
- Page 199 and 200:
the effect of expectations Research
- Page 201 and 202:
the effect of expectations the crux
- Page 203 and 204:
C HAPTE R I O The Power of Price Wh
- Page 205 and 206:
the power of price removed. The thi
- Page 207 and 208:
the power of price funerals. By 178
- Page 209 and 210:
the power of price better. And if y
- Page 211 and 212:
the power of price the common cold
- Page 213 and 214:
the power of price with the same gr
- Page 215 and 216:
the power of price workouts. Both g
- Page 217 and 218:
the power of price sage on the bott
- Page 219 and 220:
the power of price is nothing "just
- Page 221 and 222:
the power of price about placebos a
- Page 223 and 224:
the power of price ing wasn't silky
- Page 225 and 226:
CHAPTER It The Context of Our Chara
- Page 227 and 228:
the context of our character, part
- Page 229 and 230:
the context of our character, part
- Page 231 and 232:
the context of our character, part
- Page 233 and 234:
the context of our character, part
- Page 235 and 236:
the context of our character, part
- Page 237 and 238:
the context of our character, part
- Page 239 and 240:
the context of our character, part
- Page 241 and 242:
the context of our character, part
- Page 243 and 244:
the context of our character, part
- Page 245 and 246:
the context of our character, part
- Page 247 and 248:
The Context of Our Character, Part
- Page 249 and 250:
the context of our character, part
- Page 251 and 252:
the context of our character, part
- Page 253 and 254: the context of our character, part
- Page 255 and 256: the context of our character, part
- Page 257 and 258: the context of our character, part
- Page 259 and 260: the context of our character, part
- Page 261 and 262: CHAPTER 1 3 Beer and Free Lunches W
- Page 263 and 264: eer and free lunches the beer ourse
- Page 265 and 266: eer and free lunches Jonathan and I
- Page 267 and 268: eer and free lunches who was his wi
- Page 269 and 270: eer and free lunches But there's a
- Page 271 and 272: eer and free lunches new strategies
- Page 273 and 274: eer and free lunches we should cons
- Page 275 and 276: Thanks Over the years I have been f
- Page 277: thanks time in the institute's kitc
- Page 280 and 281: list of collaborators match—an ov
- Page 282 and 283: list of collaborators George is cur
- Page 284 and 285: list of collaborators working toget
- Page 286 and 287: notes 9. Sarah Bakewell, "Cooking w
- Page 289 and 290: Bibliography and Additional Reading
- Page 291 and 292: ibliography and additional readings
- Page 293 and 294: ibliography and additional readings
- Page 295 and 296: ibliography and additional readings
- Page 297: ibliography and additional readings
- Page 300 and 301: Index arousal (continued) underpred
- Page 302 and 303: Index Descartes, Rene, 43 diet, pro
- Page 306 and 307: Index money: benefits of, 86 dishon
- Page 308 and 309: Index relativity, 1-21 bread-making
- Page 310: Index taste (continued) exotic-soun