25 April 2010

Dan Ariely on predicting the irrational

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Dan Ariely
Tom H. C. Anderson, founder and managing partner of Anderson Analytics, discuss the book “Predictably Irrational” and the field of market research with behavioural economist Dan Ariely.

Dan is also professor of Behavioral Economics at Duke University Fuqua School of Business and visiting professor MIT The Media Laboratory.

“If the decision environment plays a big role in what people end up choosing, it’s important to model or represent the decision environment. To the extent that conjoint analysis correctly represents decision environments that people use when making particular decisions (when people consider different computers they look at the whole profile: resolution, memory, hard drive space) then it’s a good method. But to the extent that it uses different decision-making processes then it’s not accurate and can actually be misleading.”

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