Comments on: Review: Predictably Irrational

By: Sharon

Sharon — Mon, 24 Mar 2008 18:10:14 +0000

My husband and I learned the hard way that buying the bottom-tier of things like electronics and appliances is usually a mistake. First we define the features/benefits we want, then we look at what is available. Every time we have bought the bottom end we have soon regretted it, as for just a little more money we could have either had something that lasted a lot longer or proved to be much more useful, or both.

For some things, we spring for the top of the line. Our freezer is a commercial model. We got it in 1982, and it has never given us a moment’s trouble. When you consider the value of the frozen foods, the expense of having to rush out and buy a replacement in a hurry and the extreme inconvenience factor, putting more money up front in a top of the line model made sense.

Also, as you get older, “luxuries” become necessities. We always drove stick shift, well-used cars. When my husband became ill with chronic fatigue syndrome, we found that an automatic shift car became essential for his ability to drive. Likewise, cruise control became an important factor in his ability to drive longer distances safely. And let me tell you–when you hit menopause, air conditioning is NOT a luxury! The cars are now air conditioned, automatic shift, cruise-controlled well-used cars. We’ll let the financial idiots buy new!

For things that don’t really matter, like pasta, by all means avoid the middle ground and head for the cheapest. If you want something that needs to last, almost always the middle ground is exactly what you want.

By: My.cold.dead.hands

My.cold.dead.hands — Mon, 24 Mar 2008 12:25:43 +0000

I’m currently reading this book. I was suprised at many of the scenarios and will admit to falling prey to some of the irrational thinking it points out.

There was one chapter however that has really stuck out. It was an example of children trick or treating and willing to trade one type of candy for another, the author assumed that the only factor in the decision should be net weight of candy, it never took into account something more subjective, that some things taste better (or are more appealing) regardless of weight (or quantifiable trait).

Life choices are not always about the numbers, there are some factors that play into our decision making that you just can’t put on a chart. The one thing that anyone can take away from this book is to be cognicant of what those factors are for themselves and not to be blindly lead by them.

By: Saving Freak

Saving Freak — Mon, 24 Mar 2008 03:09:57 +0000

Getagrip that tennis ball story is a perfect example. Just goes to show perception, not reality, is all that matters to many people.

By: getagrip

getagrip — Mon, 24 Mar 2008 03:06:42 +0000

One point about chapter 10, the power of price, I saw in action. Some years ago I happened to be in a very high end retailer store’s sporting goods department and saw cans of tennis balls on sale. I needed some, so picked up the can and checked the price. It was more than triple what I could have gotten the can for at Walmart or Kmart on any given day. I checked the can multiple times to see if there was something special about the tennis balls I was missing. Finally I went over to the clerk and asked him why they were so expensive on sale.
His explaination was that he was well aware of how much they sold at other stores, but they had found if they discounted them to a Walmart price, their customers thought the balls were factory rejects, some actually complained about their selling shoddy merchandise, and noone would buy them. When they jacked the price up, then dropped them a little, they sold out pretty quick. Apparently the clientele of the store were more interested in appearing to get a deal, than actually getting one.

By: Matt

Matt — Mon, 24 Mar 2008 01:56:38 +0000

Hi Trent,

Sounds like this is a book I really need to read. I have the best intentions sometimes and I’m off on a tangent before I know it. Its frustrating and it sounds like this book can bring some insights as to why this happens. Thanks for the review.

By: Matt

Matt — Sun, 23 Mar 2008 22:18:59 +0000

From my experience working with Dan as an advisor at our startup, his research has some really interesting implications not only for individuals, but how we solve some of our larger social issues. Ideas like the “self-control credit card” (ch. 6) and “save more tomorrow” (ch. 13) could go a long way to help with our relative inability to control our spending and give up present benefits for future gain.

What’s great about his research is that he has a policy orientation and wants to help create more “free lunches” so that everyone benefits, in spite of our shortcomings. I’m really looking forward to his future research. Anyone interested in learning more should check out blog (with entries like “Obama and online dating” it’s really a fun read).

By: Tyler @Dividend Money

Tyler @Dividend Money — Sun, 23 Mar 2008 20:47:57 +0000

Trent,
This review hits strikingly close to home with me. I don’t have much trouble purchasing things that I don’t need, but I have fallen victim to the “buy the model in the middle” routine.
I find that I end up buying the middle priced item when I have not done the proper research to compare the options available.
It is funny how I realize this and yet continue to make the purchase. It sounds like this book could help me to understand why I do this. And, only by understanding “why”, will I be able to take steps to prevent it from happening in the future.
Thanks,
Tyler