Articles & Tools

Recommendation: “Irrational and not terrible” by Dan Ariely

Author: Alex Shillman
Dvir Publishing, 334 pages

For many years, the basic assumption in economics was that we humans are incredibly rational beings. Rational people will always prefer to increase profits and minimize losses. However, already from the middle of the twentieth century, economists slowly began to understand that when it comes to man’s encounter with money, rationality is [at best] nothing more than an approximation of what is really happening. People showed a disturbing tendency to slip into debt, to be influenced by mood, the way prices were presented, misappraisals and overconfidence, and countless other things that were all decidedly “irrational,” and that’s how behavioral economics was born.

One of the most prominent figures today in the field of behavioral economics is the Israeli Professor Dan Ariely. Arieli is a particularly successful example of behavioral economics because it is endowed with one of the main qualities of the field, namely detective curiosity. The fascinating encounter between psychology and economics has given rise to a profession that does not take for granted any phenomenon in daily life and traces the hidden forces that shape everything in our lives, from tipping in a restaurant to the vengeful instinct that nests in each of us.

Irrational and Not Terrible is the most personal of his three books (preceded by Irrational and Not by Accident and, more recently, The Truth About Really), Ariely relies on personal experiences like assembling an IKEA locker or frustration with failed customer service to embark on a detective journey that discovers the real explanations behind our preferences and habits. The book lightly reviews an enormous amount of up-to-date research and leads us to the moral of each and every one of them. The personal tone of the book along with the humor manage to save it from being a dry research report and it is read with interest and with a smile.

Happy reading

עיצוב ללא שם (12)

Elevating the Professionalism of Paamonim’s Support System

Over the past year, Paamonim’s support system, providing mentorship and guidance, has seen substantial enhancements. Previously, our family support services…
עיצוב ללא שם (13)

Read about Liraz and Avi’s experience with Paamonim

Liraz and Avi, a couple residing in central Israel, have been happily married for five years. They have two young…

“After the holidays”- Everything takes on a fresh start

We’ve all heard the familiar saying “after the holidays”, often used in Israel as the most common excuse for procrastination.…
עיצוב ללא שם (5)

Paamonim’s latest Activities

Latest updates: Paamonim’s Financial College Paamonim’s College for Financial Education is committed to providing inclusive financial education to a wider…
Skip to content