A more behavioral approach to the economy

Thus, the economy is only one model, namely a simplified and incomplete representation. Here Ariely focuses on the difference between the behavior predicted by the model and reality: when we are irrational us in our decisions? When we do not maximize our usefulness? Moreover, we tend to be systematically irrational or even predictably irrational.

The many experiments conducted provide valuable lessons for effective marketing & sales activities, such as the power of the free. Namely, the same budget, it will probably be more effective to offer free products to offer products partially stored.

Ariely is placed where the economy, specifically "behavorial economics", joined the social / cognitive psychology. Very interesting. And easy to read. A great read.