“For years, my colleagues and I have been conducting experiments about human irrationality. When we present our results, the â€˜rationalâ€™ economists say, â€˜These are very nice experiments that make for great dinner conversation; but when it comes to professionals making decisions that involve money, irrationality simply doesnâ€™t occurâ€™. I never bought this argument: why would the human brain develop two different approaches to decisions that depend upon the importance of the decision? While I allowed that the market could possibly mitigate some irrational behaviour, I also felt that it could increase it.”
In an interview on the website of Forbes India, the renowned behavioural economist Dan Ariely talks about some of the hidden forces that shape our decisions.