Title: Predictably Irrational - Wikipedia
Headings: Predictably Irrational
Predictably Irrational
Contents
Chapter summary
The Truth about Relativity
The Fallacy of Supply and Demand
The Cost of Zero Cost
Being Paid vs. A Friendly Favor
Emotion in Decision Making
The Problem of Procrastination and Self-control
The High Price of Ownership
The Effect of Expectations
The Power of Placebo
Reception
See also
Notes
References
External links

Content: Furthermore, supply and demand are dependent on each other (manufacturer's suggested retail prices affect consumers' willingness to pay). Finally, the author claims that the relationships between supply and demand are based on memory rather than on preferences. The Cost of Zero Cost
In chapter 3, Ariely explains how humans react to the words "free" and "zero". Humans make decisions without rationalizing the outcomes of their choices. To illustrate this point, Ariely conducted multiple experiments. The outcome was consistent: when faced with multiple choices, the free option was commonly chosen. With the opportunity to receive something for free, the actual value of the product or service is no longer considered. Ariely claims, "Most transactions have an upside and a downside, but when something is FREE! we forget the downside.