Predictably Irrational


Several weeks ago I had the chance to read Predictably Irrational, written by MIT professor, Dan Ariely.  Several of Ariely's studies have particularly interested me, including the following:
  • The power of "free."  You can sell something for mere cents, but the minute you offer it for "free," get out of the way and wait for the stampede.  Implication for the church?  Stop nickel and diming everybody!  If we think something is truly valuable and life-changing, let's do everything in our power to make it available for free, no strings attached.  Our church's updated website (launching sometime this spring) will offer a link for obtaining a free book (if you reside in Sandusky County).  I'm interested to see if "the power of free" boosts web traffic.
  • Ariely's chapter on social exchange norms vs. market norms has huge implications for the church (and other organizations, as well).  The minute that we begin PAYING an individual for a service that he was perfectly content doing for free as a volunteer, the whole relationship changes.  (Yet, gift-giving is ALWAYS appreciated and keeps the relationship from tilting into the arena of market norms.)
  • Finally, the chapter on the influence of arousal is well worth the read.  While, I don't agree with the methods used in their study, Ariely's team found that bright, young male participants answered values questions VERY differently when they were aroused then when they were in a "cold" state.  "Across the 19 questions about sexual preference, when... the participants were aroused they predicted that their desire to angage in a variety of somewhat odd sexual activities would be nearly twice as high as (72 percent higher than) they had predicted when they were in a cold state" (p. 96).  If I get the chance, I'll write some more about this particular study and the implications for church leaders.

Comments

Roger Hart said…
Please do explain, 'cause I don't understand. Social exchange norms vs. market norms? My interest is "aroused."
Ken DeChant said…
I guess the quickest way that I would explain (some economist out there is going to read this and cringe) is that market norms has to do with the culture of the business world: wages, prices, costs-and-benefits, individualism, etc. Social exchange norms has to do with a culture in which friends make simple requests of other friends (pay is not expected... "that's what friends are for."

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