Dan Ariely 29 november

www.danariely.com

THE (HONEST)� TRUTH

ABOUT DISHONESTY

DAN ARIELY

New York Times bestselling author of

Predictably Irrational and The Upside of Irrationality

How We Lie to Everyone—Especially Ourselves

EXTERNAL REALITY VS.

SUBJECTIVE REALITY

D. Purves

ILLUSIONS AS A METAPHOR

A FEW EXAMPLES OF

“DECISION ILLUSIONS”

0

20

40

60

80

100

Den

mar

kN

ethe

rland

sU

nite

d K

ingd

omG

erm

any

Aus

tria

Belg

ium

Fran

ceH

unga

ryPo

land

Port

ugal

Swed

en

8610010010010098100

121728

4

% o

f dri

vers

don

atin

g or

gans

Organ donations?

Johnson & Goldstein (2003)

Opt-in

Check the box if you want to participate in the organ donor program

Opt-out

Check the box if you don’t want to participate in the organ donor program

people don’t checks the box -- and don’t join

people don’t checks the box -- and join

The Jam study

6 jams 24 jams

Approach 40% 60%

Try 1,4 1,5

Buy 30% 3%

Iyengar & Lepper (2000)

Answer the following:

Please write 3 reasons why you love your

significant other

Please write 10 reasons why you love your

significant other

Please write 3 reasons to buy a BMW

Please write 10 reasons to buy a BMW

Should you call the dentist to make an appointment?

How often do you floss?

0 1 2 3 4 5 6 7 8 9 >9A day:

0 1 2 3 4 5 6 7 8 9 >9A month:

“I am below the norm”

“I am above the norm”“No need to call”

“Call now”

Asymmetric dominance

Attr

ibut

e 1

Attribute 2

R

PR-

P-

68%

32%84%

0%

16%

Fo

rm A

Fo

rm B

Tom Jerry

Tom Jerry

Jerry’

Tom’

♥

♥

♥

♥♥♥

♥

♥♥

♥

♥

♥♥♥

♥

♥

$600

$400

? ?

What matters?

•Value

•Pleasure

•Opportunity cost

•Initial decisions

•Past behavior

•Past prices

•Memory

Should Should not

Self control: The problem &

How to get over it

Now

Des

ire

Nextweek

Nextyear

Year&week

Time

Impo

rtan

ce

Movies

Approaches for self-control

Reward substitution

Self-control contracts

1 immediately✔

10 w/ 10sec delay

Ainslie & Herrnstein 1974

Delayed gratification & commitment

1 immediately✔No temptation button✔

Clocky

One step further ....

✗

Final words

Standard Economics ...

What a piece of work is a man! how noble in reason!how infinite in faculty! in form and moving how

express and admirable! in action how like an angel!in apprehension how like a god!

Will Shakespeare (Act II,scene 2, of Hamlet)

Behavioral

It’s all about ..…

Free lunches!

General lessons

One more lesson:

Memento Mori

VS.

www.danariely.com

THE (HONEST)� TRUTH

ABOUT DISHONESTY

DAN ARIELY

New York Times bestselling author of

Predictably Irrational and The Upside of Irrationality

How We Lie to Everyone—Especially Ourselves