# Dan Ariely's Predictably Irrational Summary

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An economist would say zero is just another price. When an average customer hears the word zero it also brings to the mind the word free. In the book Predictably Irrational by Dan Ariely chapter three to be specific. People are always trying to get anything for nothing or a lower price so if something is free then customers instinctively take the cheaper choice. Ariely displays how this instinct appears with buried costs that expose the illusion of rational customers. Even if the instinct people get is from standing in line waiting to get something for free or hoarding worthless free junk they don’t need, people are constantly trying to get anything for free. In Chapter three Ariely conducted an observational experiment to find the answer on …show more content…

Ariely set up a booth presenting two piles of chocolates, the first being Hershey kisses and the second being Lindt Truffles.. He sold the Lindt truffles for 15 cent and the Hershey’s kisses for 1 cent. From the exceptional quality Lindt won this observation because seventy-three percent chose Lindt and twenty-seven chose Hershey kisses. An economist might convey that Lindt was obviously a exceptional brand and from the superior quality it counterbalanced its price better than Hershey did. Then Ariely took one cent off the cost of each option of chocolate. Now the Lindt truffle price was 14 cents and the Hershey kiss was free. Since Lindt was a better product, the Lindt chocolates should stay in first place because the corresponding cost was not changed, the Lindt brand still cost 14 cents more than Hershey. The amount on what …show more content…

This can cause to people over buying and having way too much stuff. In my mom's case she is a hoarder because of all the “great” deals she comes across. Good prices can do some major damage, now that my mom is a hoarder she has done this with everything. She always sees the need to keep something we have double of, or doesn't work. The reason for this irrational way of thinking is what if the other one we have goes bad or stops working or we can just buy a little part to fix it instead of buying a whole new one. Now it's sometimes smart to think that way and be cautious of money. When it comes to little things it starts to add up, and buy add up I just mean by all the stuff we have in the house. Ariely also gives examples with food like sugar free drinks feel like the healthy and good