Predictably Irrational: Takeaways

1. Humans are conditioned to view things as fair; as Frederick Taylor's scientific management theory suggests, workers want outputs deemed 'fair' for their inputs. It is vital to identify the opportunity cost of a decision from an objective market-based standpoint; by examining personal utility stripped from human equity. In other words, being more conscientious of your sentiments and attempting to solely trade in terms of market norms rather than trying to factor in the seller's vision.

2. Humans are plagued by short-termism. In the productivity space, this is term is often coined as instant-gratification, which suggests that we prefer doing things that give us instant pleasure, such as watching a movie, as opposed to reading or studying in which we cannot conceptualise the full extent of utility gained since the benefits take time to accrue¹.This same concept spills over into decision-making as well. It can be perilous if combined with clever marketing tactics such as 'FREE' products or services or pressing urgency to convey a 'fear of missing out.' It is observed that different emotions heavily influence us, but if we make ourselves conscious of them, we can be in a better position to make better decisions.

3. Humans are willing to work for free if they feel it will contribute to something bigger than themselves in the pursuit of reaching a state of self-actualisation as described in Maslow's hierarchy of needs;. Although no one will do a job for free, employee retainment and acquisition should have a greater focus on non-financial rewards and stray away from strict market norms, including when dealing with customers.