Notes on Predictably Irrational by Dan Ariely

I've been going through Dan Ariely's books pretty much in reverse order, and I just finished reading the last one to complete my collection: Predictably Irrational: The Hidden Forces That Shape Our Decisions.

I could see in this book many of the seeds of ideas that he would expand on in subsequent books, such as about dishonesty and the irrationality of too many options. I enjoyed his description of the experiments, and I liked how each chapter went through one major source of irrationality and how it can be used to predictably influence people (reminds me of Cialdini and Munger). Below are my notes on this one.

Intro
Injury
Quick fast pain better than slow low pain? His research showed no for bandage removal.
Science as area where anyone can come up with alternative theory and empirical test to check it
Behavioral economics

1 relativity
Humans rarely choose on absolute terms
Everything relative
Decoy option
We compare what is easily comparable but don't compare what is hard to compare
We like to make decisions based on what we understand
Put in option which is less attractive to increase attractiveness of base option
Can change our focus and circles we go in to change what we compare to
Change the frame of relativity
The more we have the more we want

2 fallacy of supply and demand
To make man want something, make it difficult to obtain
Imprinting of first impression
Anchors
Arbitrary coherence
First decisions translate into long term habits
Herding and self herding

3 cost of zero cost: why we pay too much whn we pay nothing
Zero is source of irrational excitement
Big difference between zero and tiny

4 cost of social norms: offers of direct payment kills social norms
Two separate worlds: market and social
Can't mix social and market norms
Ppl work more for cause than for cash
Don't mention prices in relationships
Money most expensive way to motivate people

5 influence of arousal
People react and predict very differently when calm and cool than when aroused

6 problem of procrastination and self control 
Use rules to impose personal control

7 high price of ownership: why we overvalue what we have
We focus more on what we will lose than gain
We expect buyer to see same perspective as we
Trial promotions
View transactions as nonowner

8 keeping doors open: why options distract us from our main objective
Irrational compulsion to keep options open in life even when worse for us
Consider time wasted while trying to make decision or keeping doors open

9 effect of expectations: why mind gets what it expects
See events as u want to
Dish names affect taste
Presentation affects taste

10 power of price
Placebo surgeries
Power of suggestion
Belief and Conditioning
Price changes experience
What u pay is what u get

11 context of our character: why we are dishonest
Honest ppl cheat 10% even if can cheat more with no risk
Just reminding people about morals or just to recall them made them more honest
Professional oaths
Decline in professionalism
Signing name to oath

12 context of our character: why dealing with cash makes us more honest
People take items more readily than taking cash
Easier to cheat when one step removed from money
When medium of exchange is nonmonetary then it is easier to rationalize
Dealing with cash is like being primed by honor code

13 beer and free lunches
When u order first u r happier than if listen to others order before u
Behavioral economics and irrationality imply there are free lunches

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