From Predictably Irrational by Dan Ariely

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Presentation transcript:

From Predictably Irrational by Dan Ariely ACCT 7320 Fall 2014 Bailey

Magazine subscription options Which one-year subscription option would you choose? 1. Online $59 2. Online and print $125

Magazine subscription options Which one-year subscription option would you choose? 1. Online $59 [68% chose] 2. Online and print $125 [32% chose]

Magazine subscription options Which one-year subscription option would you choose? 1. Online $59 [16% chose] 2. Print $125 [none chose] 3. Online and print $125 [84% chose]

Which man is more attractive?

Experiment: Insert a slightly distorted version of one, called -A or -B

Experiment: Insert a slightly distorted version of one, called -A or -B

The lesson? Hang out with a slightly less attractive version of yourself.

Pricing is irrational One example of several experiments,,,