analytical guestimation

Although the battle will rage between classical macro-economist and behavioral economists for decades to come, Dan Ariely’s Predictably Irrational provides insight into the human psyche that go far beyond supply and demand.  An amazing storyteller, the book gives example after example of how humans don’t necessarily make decisions in as logical way as we all might have thought.  Although many of the concepts aren’t revolutionary (e.g. anchoring, distraction, thought process quantity), the concepts described have far reaching application: public policy creation, marketing campaigns, incentive policies and many others.