Why You’re Not as Logical as You Think?

Let me kick things off with a quick confession: I like to think I’m a pretty rational person.

I’ll bet you do, too.

After all, when we make decisions, we assume we’re in control, weighing all the facts, considering our options, and coming to a sound conclusion, right?

Well, not exactly.

It turns out, we humans are terrible at being rational. We’re emotional, impulsive, and easily influenced by things we aren’t even aware of.

And here’s the kicker: this irrationality doesn’t happen randomly.

It follows predictable patterns.

What if I told you that understanding these patterns could not only help you make better decisions but also influence others in surprising ways?

That’s where Dan Ariely comes in. He’s a professor at Duke University who’s spent years studying human behavior.

His insights are like a cheat code to understanding why we do the crazy things we do.

From how we value things to why we love “free” stuff, Ariely breaks down the hidden forces shaping our choices.

So, let’s dive into eight of his most eye-opening discoveries—and along the way, we’ll figure out how to use this knowledge to hack our own behavior (and maybe even get ahead of the game).

1. The Relativity Illusion: Why We’re Always Comparing Things

Have you ever walked into a store looking for one thing but ended up buying something completely different because it looked like a better deal?

Congratulations! You’ve just fallen victim to the relativity illusion.

We’re terrible at judging things in isolation, so we compare, compare, compare—sometimes to our own detriment.

Let me give you an example that’ll make you laugh and facepalm at the same time. The Economist ran this genius subscription pricing strategy:

• Option A: $79 for digital-only
• Option B: $229 for print-only
• Option C: $255 for both print and digital

Obviously, you’d pick Option C, right? It feels like you’re getting double the value for the same price. But wait—what if Option B didn’t exist?

Without that middle option to compare against, suddenly $225 for both print and digital doesn’t seem like such a great deal.

You might just stick with the cheaper digital-only option.

The trick here is that our brains are constantly looking for reference points. We can’t help it.

We make decisions based on what’s near us—whether it’s a friend’s lifestyle or the price of a different product.

This insight is pure gold when it comes to sales, marketing, or even persuading someone in an argument.

Give people something to compare, and you’ll guide them to the decision you want.

2. The Power of Expectations: How Perception Becomes Reality

Here’s a little mind game that Ariely played on some unsuspecting college students.

He gave them two beers—one of them secretly spiked with balsamic vinegar.

When the students didn’t know about the vinegar, they liked the beer.

But the moment they were told there was vinegar in it, their faces scrunched up, and they couldn’t stand the taste.

What does this tell us? Our expectations shape our reality, often in ways we don’t even notice. If you expect something to be bad, it’ll likely feel bad.

If you expect it to be good, you might just convince yourself it’s amazing—even when it’s not.

Think about it in your everyday life: if you go into a meeting expecting it to be boring, it probably will be.

If you head to a restaurant everyone says is amazing, the food is already halfway to being great in your mind.

The same goes for interactions with people. Once you label someone as difficult or rude, every little thing they do will seem like proof of your expectation.

But flip the script—go into a situation with positive expectations—and you might be pleasantly surprised.

3. The Magic of “Free”: Why We Go Crazy for Zero Cost

Tell me if this sounds familiar: You’re browsing an online store, trying to stick to your budget, when you see the magic words—free shipping.

Suddenly, you’re adding extra items to your cart just to qualify for that free shipping. You know you’re spending more than you originally intended.

Why do we do this to ourselves? Because, as Ariely discovered, the word free has an almost hypnotic effect on our brains. It’s like a mental shortcut.

The minute we see the word, our logic goes out the window, and we make irrational decisions just to get something for nothing.

Here’s the kicker: “free” is rarely truly free. You might pass up a better deal because of the lure of zero cost.

Think about all those “Buy One, Get One Free” offers. Did you really need two? Probably not. But “free” made it irresistible.

Once you understand this, you’ll start noticing how often companies use this tactic to nudge you into buying more. And hey, maybe you’ll even be able to resist it next time.

4. The Cost of Social Norms: Why Money Makes Us Less Generous

This next one is going to make you scratch your head.

In a study, Ariely asked lawyers if they would be willing to offer their services. He suggested a steep discount of $30 an hour to people in need.

Most of them said no. But when they were asked to volunteer their services for free, they jumped at the chance.

Wait, what? Wouldn’t $30 be better than nothing?

Apparently not.

Once money enters the equation, it changes the way we think about generosity.

When we’re asked to help out of the goodness of our hearts, we’re willing to give.

But if you mix in a financial incentive—even a small one—it suddenly becomes a transaction, and we’re a lot less interested.

This phenomenon has some pretty big implications.

If you want someone to do something kind or generous, appeal to their sense of goodwill. This approach will get you further than offering a small payment.

The moment money gets involved, it feels like work. And let’s face it—no one loves feeling like they’re doing more work than they’re being paid for.

5. The Influence of Arousal: Why Emotions Lead to Bad Decisions

Here’s a fun (and by “fun,” I mean slightly horrifying) truth: when we’re in a heightened emotional state—whether it’s anger, fear, excitement, or even lust—we can’t predict how we’re going to behave.

And worse, we tend to make some truly terrible decisions in the heat of the moment.

Ariely’s research shows that when we’re emotionally charged, rational thinking takes a back seat.

We might make promises we can’t keep, send texts we shouldn’t, or splurge on something we didn’t even need—all because our emotions are in the driver’s seat.

The problem is, in calm moments, we like to think we’ll stay calm when things get intense.

Spoiler alert: we won’t.

This is why it’s so important to put distance between yourself and any big decision when you’re feeling emotional.

Sleep on it, take a walk, count to ten—whatever you need to do to get back to a rational state. Your future self will thank you.

6. The High Price of Ownership: Why We Overvalue What’s Ours

If you’ve ever tried to sell something on Craigslist or Facebook Marketplace, you’ve probably felt this one firsthand.

The moment something becomes yours, you assign it a much higher value than anyone else ever will.

That’s the endowment effect, and it’s sneaky.

Ariely explains that ownership plays tricks on our minds. Once something belongs to us, we start thinking it’s more special, more valuable, more everything than it really is.

This is why companies love offering free trials or money-back guarantees.

Once you’ve used a product—even briefly—it feels like yours, and suddenly, parting with it feels painful.

Think about the “Ikea effect”.

You spend hours putting together a piece of furniture, and by the end of it, that wobbly bookshelf feels like a masterpiece.

You’ve invested your time, energy, and effort, so of course, you’re going to overvalue it.

This also explains why we hang onto things we don’t really need—whether it’s clothes, gadgets, or even relationships.

It’s hard to let go once we’ve got that ownership hook in our brains.

7. The Fallacy of Supply and Demand: Why Prices Are Mostly Made Up

If you’ve ever wondered why some things cost so much when they don’t seem worth it, you’re not alone.

We like to believe that prices are set by rational factors like supply and demand, but Ariely shows that’s often not the case.

Prices are frequently arbitrary, designed to make you think something is more valuable than it really is.

Take the iPhone. Is it really worth the eye-popping price tag? Maybe not.

But we’ve been conditioned to believe that because it’s expensive, it must be worth it.

This isn’t just about gadgets, either—it applies to fashion, food, and even experiences.

If we think something costs more, we’ll often convince ourselves it’s better.

This doesn’t mean we’re suckers, necessarily—it just means we’re human.

The key is being aware of this bias so we don’t fall for it as often.

Once you realize that price doesn’t always reflect true value, you can start making more thoughtful decisions.

8. The Power of Price: How Expensive Feels Like Quality

Speaking of prices, here’s another wild experiment from Ariely’s playbook.

He gave participants a placebo painkiller—one group got a pill that was “priced” at $2.50, while the other group got a pill priced at $0.10.

Both groups were given the exact same pill, but guess what? The people who took the “expensive” pill reported feeling way more relief.

This experiment highlights something we all experience but rarely acknowledge: we associate higher prices with higher quality, even when there’s no real difference.

That $50 bottle of wine?

It probably doesn’t taste better than the $10 bottle, but the price tricks us into thinking it does. We equate cost with value, even when the two are completely unrelated.

This is a good reminder to take a step back before splurging on something just because it’s expensive.

Ask yourself if the price really reflects the quality—or if your brain is just playing tricks on you.

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What Does It All Mean?

So, what’s the takeaway from all of this?

We’re not nearly as rational as we like to think.

But that doesn’t have to be a bad thing.

Understanding the quirks of our behavior can help us make smarter decisions, avoid marketing traps, and even influence others in positive ways.

The next time you’re weighing a decision, whether it’s a purchase, a favor, or even an argument, take a moment to check in with yourself.

Is your brain playing one of these tricks on you?

Spoiler alert: it probably is.

And hey, that’s okay.

We’re all irrational, but now, you’ve got a little more insight into the why—and maybe a few tools to use it to your advantage.

Thanks for reading, and here’s to making (slightly) better decisions from now on!

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