We are deeply irrational.
As Dan Ariely points out though, there is logic in our illogic. We continue to bring our past experiences and biases into our decision making over, and over, and over…
While there are methods to attempt to make rational decisions (such as the painstakingly difficult decision tree), in reality this is not how we tend to operate.
When we look at how we make purchases, we see a similar thing happen. We are looking at the decision whether or not to purchase based on our current narrative and conditioning.
We assess our situation and whether or not there is a problem. We quickly project forwards and assess the transformation that the purchase may make for us – the “implications,” and finally we usually end up with some rose coloured thoughts on the payoff if we make the purchase.
“Do you take credit?”
The thing is, in the health, medical and food industry, there are countless debates raging back and forth on the effectiveness of exercises, certain diets and so forth.
“How can they believe that?”
“It doesn’t make any sense.”
Well, rationally speaking, many of our decisions don’t make sense. When we work a little harder to understand the context of the people involved though, we can see powerful reasons shine through for these choices.
Being OK with irrationality is the first step, then cultivating empathy for those around us and their seemingly obscure choices is the next.
