Predictably Irrational: The Hidden Forces That Shape Our Decisions

Messenger We are heavily influenced by who communicates information. Incentives Our responses to incentives are shaped by mental shortcuts. Norms We are strongly influenced by what others do. Defaults We “go with the flow” of preset options. Salience Our attention is drawn to what is novel and seems relevant to us. Priming Our acts are often influe

The irrationality. When it comes to making decisions, it’s clear that our brains are flawed instruments. But less attention has been paid to another compelling question: Given that we’re wired to act foolishly sometimes, how can we do better?

Our Conclusions Reflect Self-Interest

Some economists are already working on that. They are using this brain-imaging data to support a new political philosophy known as asymmetric paternalism. That's a fancy name for a simple idea: creating policies and incentives that help people triumph over their irrational impulses and make better, more prudent decisions. Shlomo Benartzi and Richar

Humans, more than Econs, also need protection from others who deliberately exploit their weaknesses—and especially the quirks of System 1 and the laziness of System 2. Rational agents are assumed to make important decisions carefully, and to use all the information that is provided to them. An Econ will read and understand the fine print of a contr