...fundamentally rational ways. Blending everyday experience with ground breaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. N o t only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predict able—making us predictably irrational. From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns o f thought to make better decisions. Predictably Irrational will change the way we interact with the world—one small decision at a time. 0208 DAN ARIELY is the Alfred P. Sloan Professor o f Behavioral E c o n o m i...
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...1. Source: book, Predictably Irrational, by Dan Ariely: pp. 4. Passage: “One thing Rapp has learned is that high-priced entrees on the menu boost revenue for the restaurant－even if no one buys them. Why? Because even though people generally won’t buy the most expensive dish on the menu, they will order the second most expensive dish. Thus, by creating an expensive dish, a restaurateur can lure customers into ordering the second most expensive choice (which can be cleverly engineered to deliver a higher profit margin).” What works: First describe a seemingly self-contradictory phenomenon to arouse interest. Then, by asking “Why?” for the reader, the author naturally gives out the reason that resolves the puzzle. Using it: I can use rhetoric questions to let readers think for themselves first, and then offer my own reason. 2. Source: book, Predictably Irrational, by Dan Ariely: pp. 17. Passage: “The result? Now the average CEO makes about 369 times as much as the average worker－about three times the salary before executive compensation went public.” What works: Using a precise number “369 times” to make a dramatic effect on the polarity of income. The number is really eye-catching, and straightly conveys a sense of sarcasm. Using it: If I want to show the scale of something, I can use exact numbers to impress the reader. 3. Source: A little faster, George? From The Economist, March 9th 2013: pp. 11. Passage: “Over the past 170 years this newspaper has tracked...
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...Dan Ariely’s evaluation of human behavior in Predictably Irrationality is essentially eccentric especially to the science reader who is trained in a world of testable explanations, logical reproducible results and predictions. We prefer to believe we are logical beings, responsible for our actions and deserve to rip the credit for every success. Then enters behavioral economics. Humans are rational beings, but not predictably. Ariely begins by affirming that humans think in relative measures. It is much easier to compare and contrast alternatives, which are familiar to us. The first chapter on relativity aptly shows limitations in judgment when faced with similar alternatives and the effect of a decoy. It seems his experiments suggest it is easier and more compelling for humans to compare 2 things, to keep a narrow focus and deliberately block out cofounding factors or scenarios. From his conclusions I learnt it is crucial to keep decision options simple, identify decoys and be able to introduce or break the cycle of relativity depending on your objective. The concept of supply and demand is fundamental in economics and remains the backbone of a market economy. However goods of ostentation as shown by the example of the pearl used by Dan Ariely defy this concept. He however goes further to show that “anchors” could be used to attribute any price to about anything. I contend that in developing economies, where a larger part of the market is still trapped at the bottom of...
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...Matthew Ellis Marketing Management Prof Pashkevich December 4, 2013 In the book predictably irrational, author Dan Ariely explains and demonstrates through witty experiments the fact that although we may think we are always making rational, well thought out decisions, there are actually hidden factors that cloud our ability to make the right decisions. He goes on to discuss how our emotions, social norms, and other hidden forces can change our rational intentions into extremely irrational Behaviors. The interesting part is that these irrational behaviors seem like the correct thing to do at the time and we use these past experiences to make future decisions, and therefore if we are not very careful we can fall into a never ending train of irrational decisions. Dan Ariely makes it quite apparent that this behavior takes place in everyday life even though we may not know it and hopes that his research can open our eyes to this fact and help us to avoid making irrational choices. He challenges the traditional assumption that the economic man uses rational thought to make decisions and challenges his readers to rethink the way they view the simple, everyday choices made on a daily basis. After reading the book, he makes it obvious that we all unknowingly act predictably irrational, however he gives us the tools to overcome this and think and behave in a rational manner. Some of the major points discussed in the book include the truth about making decisions based on comparisons...
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...Dan Ariely’s nonfiction book Predictably Irrational provides an exciting perspective on the field of behavioural economics. Ariely presents his own theories and research on various aspects of human behaviour. He explains the fundamental differences between traditional economics and behavioural economics in a way that is easy to understand. Traditional economics assumes that people are rational, whereas behavioural economics stresses that they are irrational. Ariely’s primary focus in the work is this debate between rationality and irrationality. The entire book is written in the first person using an informal tone. The casual tone can be justified as the book is aimed at the general public, as opposed to other researchers and academics. However, given the scientific nature of the information he is presenting, the informal tone also causes his findings to lack assertiveness. Keeping in theme with the informal tone, Ariely uses many anecdotes to convey his findings in a way that is relevant to, and can be understood by, the reader. The anecdotes help the reader grasp the concepts with greater ease, but the addition of personal stories further detracts from the assertiveness of his research. At the risk of losing some readers, it would have been preferred for Ariely to use a more formal approach to match the serious content of his work. Clearly, Ariely aimed to reach a broader range of readers who would not normally study behavioural economics. The book is geared mainly at an...
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...do these decisions affect the financial markets? With the financial markets in Asia being the largest in the world, such an interesting environment with participants displaying different levels of capitalism, financial market experience and knowledge, Asia is definitely a fertile ground for the study od behavioral finance. According to conventional financial theory, the world and its participants are, for the most part, rational "wealth maximizers". However, there are many instances where emotion and psychology influence our decisions, causing us to behave in unpredictable or irrational ways. Asians in general suffer from cognitive biases, more so than Westerners, often being viewed as ‘Gamblers. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions .It calls for investigation into higher mental processes, memory, perception, problem solving and thinking .This paper looks at some of the anomalies (i.e., irregularities) that conventional financial theories have failed to explain. In addition, review underlying reasons and biases that cause some people to behave irrationally. 2.- Brief survey of the literature The following areas of research have been covered, from the mid 1980’s to the main focus of the article(special edition 2008): Overreaction and Availability Bias, Overconfidence, Cultural difference...
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...Wiki Loves Monuments: Photograph a monument, help Wikipedia and win! Production theory From Wikipedia, the free encyclopedia Jump to: navigation, search Production theory is the study of production, or the economic process of converting inputs into outputs. Production uses resources to create a good or service that is suitable for use, gift-giving in a gift economy, or exchange in a market economy. This can include manufacturing, storing, shipping, and packaging. Some economists define production broadly as all economic activity other than consumption. They see every commercial activity other than the final purchase as some form of production. Production is a process, and as such it occurs through time and space. Because it is a flow concept, production is measured as a “rate of output per period of time”. There are three aspects to production processes: 1. the quantity of the good or service produced, 2. the form of the good or service created, 3. The temporal and spatial distribution of the good or service produced. A production process can be defined as any activity that increases the similarity between the pattern of demand for goods and services, and the quantity, form, shape, size, length and distribution of these goods and services available to the market place. Contents * 1 Neoclassical Theory of Production * 1.1 Factors of production * 1.2 Total, average, and marginal product * 1.3 Diminishing returns * 1.4 Diminishing marginal returns...
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...Smartphones and Social Networking David B. Henson ISSC340 Professor Jeffrey Miller American Military University July 2014 The technologies used in making today’s Smartphones and the way they communicate play a crucial role in changing the way we as humans interact with each other. Just a few decades ago there were no smartphones. People interacted with one another via face-to-face conversations. There were no apps to check in to someplace, to text someone, or a way to update your status on your favorite social networking site. People got together in groups and had verbal face-to-face conversations, interaction, hugging, handshaking, smiles, frowns and many more reactions to one another. Today, people have those same reactions but, with digital friends they may have never met. You may hear people say they have a few hundred Facebook friends, Twitter followers, or Youtube views of videos they put online. Is interacting with digital friends online considered human interaction? Where does this interaction take place? When you sit behind a computer screen, a tablet, or your Smartphone and update your status or read someone’s updates is it considered human interaction? This author thinks it is not. SMARTPHONE AND NETWORK TECHNOLOGY The first mobile phone call was made in 1973. Martin Cooper, a Motorola engineer called his competitor at AT&T. Although, it took some time after that first mobile call; almost every person has a Smartphone today. Martin Coopers dream has...
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...Concepts - Confirmation and Hindsight Bias 7) Behavioral Finance: Key Concepts - Gambler's Fallacy 8) Behavioral Finance: Key Concepts - Herd Behavior 9) Behavioral Finance: Key Concepts - Overconfidence 10) Behavioral Finance: Key Concepts - Overreactions and Availability Bias 11) Behavioral Finance: Key Concepts - Prospect Theory 12) Behavioral Finance: Conclusion Introduction According to conventional financial theory, the world and its participants are, for the most part, rational "wealth maximizers". However, there are many instances where emotion and psychology influence our decisions, causing us to behave in unpredictable or irrational ways. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. By the end of this tutorial, we hope that you'll have a better understanding of some of the anomalies (i.e., irregularities) that conventional financial theories have failed to explain. In addition, we hope you gain insight into some of the underlying reasons and biases that cause some people to behave irrationally (and often against their best interests). Hopefully, this newfound knowledge will (Page 1 of 21) Copyright © 2010, Investopedia.com - All rights reserved....
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...Chapter Two The Production Possibility Model, Trade, and Globalization Learning Objectives After you teach the material in this chapter, your students should be able to do the following: 1. Demonstrate opportunity cost with a production possibility curve. 2. State the principle of increasing marginal opportunity cost. 3. Relate the concept of comparative advantage to the production possibility cure. 4. State how, through comparative advantage and trade, countries can consume beyond their production possibilities. 5. Explain how globalization and outsourcing are part of a global process guided by the law of one price. Chapter Outline This is meant to be an outline and summary of what your students read in this chapter in the text, both in terms of concepts and examples. Headings and subheadings are tagged with the number of the learning objective (LO) to which the material in that section most closely relates and the associated PowerPoint slide numbers, so you may also use this to help you outline your lecture. Material followed by a ( is new to the 8th edition. • The Production Possibility Model, Trade, and Globalization • The three main coordination problems are reviewed, and students are reminded about the concept of opportunity cost, which will be central in this chapter to understand production possibilities. • The Production Possibilities Model (LO1) [PPT Slides 3 & 4] • Production...
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...Headwords |Other words in the family. |Definition* | | |abandon |abandoned, abandoning, abandonment, abandons, e.g. |abandon | |abstract |abstraction, abstractions, abstractly, abstracts, e.g. |abstract | |academy |academia, academic, academically, academics, academies, e.g. |academy | |access |accessed, accesses, accessibility, accessible, accessing, inaccessible |access | |accommodate |accommodated, accommodates, accommodating, accommodation |accommodate | |accompany |accompanied, accompanies, accompaniment, accompanying, unaccompanied |accompany | |accumulate |accumulated, accumulating, accumulation, accumulates |accumulate | |accurate |accuracy, accurately, inaccuracy, inaccuracies, inaccurate |accurate | |achieve |achievable, achieved, achievement, achievements, achieves, achieving |achieve | |acknowledge |acknowledged, acknowledges, acknowledging, acknowledgement, acknowledgements |acknowledge | |acquire |acquired, acquires, acquiring, acquisition, acquisitions ...
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...ssSublists of the Academic Word List Each word in italics is the most frequently occurring member of the word family in the Academic Corpus. For example, analysis is the most common form of the word family analyse. British and American spelling is included in the word families, so contextualise and contextualize are both included in the family context. Sublist 1 of the Academic Wo rd List analyse analysed analyser analysers analyses analysing analysis analyst analysts analytic analytical analytically analyze analyzed analyzes analyzing approach approachable approached approaches approaching unapproachable area areas assess assessable assessed assesses assessing assessment assessments reassess reassessed reassessing reassessment unassessed assume assumed assumes assuming assumption assumptions authority authoritative authorities available availability unavailable benefit beneficial beneficiary beneficiaries benefited benefiting benefits concept conception concepts conceptual conceptualisation conceptualise conceptualised conceptualises conceptualising conceptually consist consisted consistency consistent consistently consisting consists inconsistencies inconsistency inconsistent constitute constituencies constituency constituent constituents constituted constitutes constituting constitution constitutions constitutional constitutionally constitutive unconstitutional context ...
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...Marketing Management 14 PHILIP KOTLER Northwestern University KEVIN LANE KELLER Dartmouth College Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Executive Editor: Melissa Sabella Development Editor: Elisa Adams Director of Editorial Services: Ashley Santora Editorial Project Manager: Kierra Bloom Editorial Assistant: Elizabeth Scarpa Director of Marketing: Patrice Lumuba Jones Senior Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Production Project Manager: Ann Pulido Senior Operations Supervisor: Arnold Vila Creative Director: John Christiano Senior Art Director: Blair Brown Text and Cover Designer: Blair Brown Lead Media Project Manager: Lisa Rinaldi Editorial Media Project Manager: Denise Vaughn Full-Service Project Management: Sharon Anderson/BookMasters, Inc. Composition: Integra Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 9.5/11.5, Minion Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2012, 2009, 2006, 2003, 2000 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All...
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...The Thief of Time The Thief of Time Philosophical Essays on Procrastination Edited by Chrisoula Andreou Mark D. White 2010 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright © 2010 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, NY 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data The thief of time: philosophical essays on procrastination / edited by Chrisoula Andreou and Mark D. White. p. cm. Includes bibliographical references and index. ISBN 978-0-19-537668-5 (hardback: alk. paper) 1. Procrastination. I. Andreou, Chrisoula. II. White, Mark D., 1971– BF637.P76T45 2010 128'.4—dc22 2009021750 987654321 Printed in the United States of...
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...Lister v Hesley Hall Ltd [2001] UKHL 22, [2002] 1 AC 215, [2001] 2 WLR 1311, [2001] 2 All ER 769 HL Summary The defendants ran Axelholme House, which was attached to Wilsic Hall School in Doncaster. Local authorities would send children to the school and they would board at Axelholme House. The defendants employed Mr and Mrs Grain to run the house and maintain discipline. The claimants stayed at Axelholme House between 1979 and 1982. During that time they were sexually abused by Mr Grain. They sued the defendants, claiming that the defendants were vicariously liable in respect of the torts committed by Mr Grain when he sexually abused the claimants. The Court of Appeal dismissed the claimants’ actions on the grounds that Mr Grain was not acting in the course of his employment by the defendants when he sexually abused the claimants. The House of Lords reversed the Court of Appeal’s decision, holding that because there was a “close and direct” connection between what Mr Grain was employed to do and Mr Grain’s sexual abuse of the claimants, the defendants were vicariously liable in respect of the torts committed by Mr Grain when he sexually abused the claimants. Comments It is not an understatement to say that this is the most important decision on vicarious liability ever handed down by the House of Lords. It’s unfortunate, then, that the decision is so badly flawed. Two criticisms may be made. First, the reasoning underlying the decision is sloppy, to say the least. Second...
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