Quotes by Behavioral Economists

Moreover, grandmothers of students who aren't doing so well in class are at even higher risk - students who are failing are fifty times more likely to lose a grandmother compared with non-failing students. In a paper exploring this sad connection, Adam speculates that the phenomenon is due to intrafamilial dynamics, which is to say, students' grandmothers care so much about their grandchildren that they worry themselves to death over the outcome of exams.
Dan Ariely
When the Starbursts cost a cent apiece, the average number of candies per customer was 3.5, but when the price went down to zero, the average went down to 1.1 per customer. The students limited themselves to a large degree when the candy was free. In fact, almost all the students applied a very simple social-norm rule in this situation—they politely took one and only one Starburst. ... What these results mean is that when price is not a part of the exchange, we become less selfish maximizers and start caring more about the welfare of others. We saw this demonstrated by the fact that when the price decreased to zero, customers restrained themselves and took far fewer units.
Dan Ariely
It seems then that instead of consumers' willingness to pay influencing market prices, the causality is somewhat reversed and it is market prices themselves that influence consumers' willingness to pay.
Dan Ariely
Following imprinting, valuations become locally coherent, as the consumer attempts to reconcile future decisions of a "similar kind" with the initial one. This creates an illusion of order, because consumers' coherent responses to subsequent changes in conditions disguise the arbitrary nature of the initial, foundation choice.
Dan Ariely
In essence, individuals more concerned with portraying their own uniqueness were more likely to select an alcoholic beverage not yet ordered at their table in an effort to demonstrate that they were in fact one of a kind. What these results show is that people are sometimes willing to sacrifice the pleasure they get from a particular consumption experience in order to project a certain image to others. When people order food and drinks, they seem to have two goals: to order what they will enjoy most and to portray themselves in a positive light in the eyes of their friends.
Dan Ariely
...[D]ivision of labor, in my mind, is one of the dangers of work-based technology. Modern IT infrastructure allows us to break projects into very small, discrete parts and assign each person to do only one of the many parts. In so doing, companies run the risk of taking away employees' sense of the big picture, purpose, and sense of completion.
Dan Ariely
If we start to think about trust as a public good (like clean air and water), we see that we can all benefit from higher levels of trust in terms of communicating with others, making financial transitions smoother, simplifying contracts, and many other business and social activities. Without constant suspicion, we can get more out of our exchanges with others while spending less time making sure that others will fulfill their promises to us. Yet as the tragedy of commons exemplifies, in the short term it is beneficial for each individual to violate and take advantage of the established trust.I suspect that most people and companies miss or ignore the fact that trust is an important public resource and that losing it can have long-term negative consequences for everyone involved. It doesn't take much to violate trust. Just a few bad players in the market can spoil it for everyone else.
Dan Ariely
We all think that in the future, we are wonderful people. We will be patient, we will not procrastinate, we will exercise, we will eat well... The problem is we never get to live in that future. We always live in the present.
Dan Ariely
One of my colleagues in Duke, Ralph Keeney, noted that America's top killer isn't cancer or heart disease, nor is it smoking or obesity. It's our inability to make smart choices and overcome our own self-destructive behaviours. Ralph estimates that about half of us will make a lifestyle decision that will ultimately lead us to an early grave. And as if this were not bad enough, it seems that the rate at which we make these deadly decisions is increasing at an alarming pace. I suspect that over the next few decades, real improvements in life expectancy and quality are less likely to be driven by medical technology than by improved decision making. Since focusing on long-term benefits is not our natural tendency, we need to more carefully examine the cases in which we repeatedly fail, and try to come up with some remedies for these situations. For an overweight movie loved, the key might be to enjoy watching a film while walking on the treadmill. The trick is to find the right behavioural antidote for each problem. By pairing something that we love with something that we dislike but that is good for us, we might be able to harness desire with outcome - and thus overcome some of the problems with self-control we face every day.
Dan Ariely
One percent of people will always be honest and never steal," the locksmith said. "Another one percent will always be dishonest and always try to pick your lock and steal your television. And the rest will be honest as long as the conditions are right - but if they are tempted enough, they'll be dishonest too. Locks won't protect you from the thieves, who can get in your house if they really want to. They will only protect you from the mostly honest people who might be tempted to try your door if it had no lock".
Dan Ariely
When people think about a placebo such as the royal touch, they usually dismiss it as "just psychology." But, there is nothing "just" about the power of a placebo, and in reality it represents the amazing way our mind controls our body.
Dan Ariely
The more cashless our society becomes, the more our moral compass slips.
Dan Ariely
In running back and forth among the things that might be important, we forget to spend enough time on what really is important.
Dan Ariely
Understand that relativity is everywhere, and that we view everything through its lens - rose-colored or otherwise. When you meet someone in a different country or city and it seems that you have magical connection, realize that the enchantment might be limited to the surrounding circumstances.
Dan Ariely
Another company came up with an even more brilliant idea --- that nobody could own their own cubicle -- designing the system such that those who showed up to work earliest in the morning could claim the ones closest to the windows. None of the cubicles had anything but a desk, a place to connect a computer, and a chair. No one could establish a sense of connection to their workspace. Ultimately, by setting the atmosphere this way, the company communicated to the employees that they are valued only for their direct productivity and that they are easily replaceable.
Dan Ariely
To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.
Dan Ariely
Ownership is not limited to material things. It can also apply to points of view. Once we take ownership of an idea — whether it’s about politics or sports — what do we do? We love it perhaps more than we should. We prize it more than it is worth. And most frequently, we have trouble letting go of it because we can’t stand the idea of its loss. What are we left with then? An ideology — rigid and unyielding.
Dan Ariely