One of the books I have read recently was “Predictably Irrational“
by Dan Ariely, ‘The hidden forces that shape our decisions.’
Three concepts were revealing in understanding certain decisions
1. arbitrary coherence that directs preconceptions
2. market norms and social norms influencing what is considered
in explaining resolving conflicts
3. how ownership pervades our life and shapes many things we do.
Arbitrary coherence signifies an anchoring effect (being first to set a
price or cost or salary) that encroaches on our minds for decisions.
Considering where this preconception arises and how irrational it
may be can allow us to bypass this habit of mind. (think: negotiation
and other numerical choices)
The most telling concept for me was the difference and impacts of
market and social norms on decisions. Social norms seem to be
common in collective cultures. It results in collaborations that lead
to a benefit to one person or group and builds on a social relationship.
Market based norms are revealed when money is involved and you
feel like you get what you pay for. It can be controlled by contracts
or involved when rewards are given that have a certain monetary value
Companies like to influence a market based transaction by bringing in
a social component. It is this mixing of market and social norms
that changes the nature of decisions and the appearance of ethical
Companies also like to bring in social based norms in motivating
Finally, Ariely highlights how we feel the influence of owning a
physical (house, shoes, pen, whatever) or
nonphysical item (idea, virtual, insurance)
on decisions to change. Ariely introduces several lines of thought
that help us manage our urges when ownership can impede our
There are many situations where managing these psychological
concepts can lead us to more professional behaviors.