Context + Explanation of Problem + Solution or Promise of Solution Formula Summary

      In this chapter of reading, the formula of context, explanation of problem, and solution ot promise of solution is explained. First, the author explains that the topic of the essay and the problem that will be presented must be given context. In order to do this, a common ground must be created so that the reader understands what is happening and orient them towards the topic. Less context given means that you believe that the audience knows and shares many thoughts with you. On the other hand, more context implies that the reader knows less than you do. Additionally, common ground should usually be given as though the reader has read the same resources as you have, but is in a different class, so possibly interpreted things differently. Then, in the introduction, the author explains how it is necessary to explain the problem, but first must present it in a manner that interrupts the stability of the common ground. In order to do this, the writer must present some condition of incomplete knowledge and then the consequences of this incomplete knowledge. The degree to which these two must be done, depends on the knowledge of the audience. The problem then must be given a solution or a promise of a solution, the final piece in the introduction according the the author. This gives the reader motivation to keep reading in order to understand and to solve their ignorance. According to the author, if all of these parts are effectively used together, the introduction will be successful in intriguing the reader to keep reading.

Predictably Irrational-Chapter 12: Summary & Response

       In chapter 12 of his book, Predictably Irrational, Dan Ariely further discusses the circumstances under which people are willing to be dishonest. Ariely describes another experiment he conducted where he put soda in some common refrigerators on a college campus and six one dollar bills in other common refrigerators. Within three days the soda was gone and the money was untouched according to Ariely. Ariely conducts a second experiment involving direct money and tokens that are exchanged for money, which results in people being more dishonest when dealing with the tokens that are directly traded in for money. From this Ariely concludes that dishonesty increases when the material in question is at least a step away from money. Additionally when a medium in not monetary then our ability to rationalize dishonesty increases because this bypasses our conscious usually. Ariely also deduces that the increase in online shopping and the use of credit cards makes it easier for people to be dishonest and steal. Because this use of cash is decreasing in the current day, it is necessary to address this problem, Ariely concludes.
         According to Ariely, cheating is easier when it is one step removed from cash because this is able to bypass our conscious and we are thus able to rationalize it more easily. Ariely gives the example of taking a red pen from work when your daughter needs it being easily rationalized, but stealing the money necessary to buy a red pen from the store would be harder to rationalize. I experience this at work sometimes as well, when I need a paperclip and I'm at work I usually just take one from work rather than buying the two dollar box of paperclips at the  convenience store that is a two minute walk away. This occurs with insurance when people increase the value of individual products that were destroyed in their home for insurance to cover. This happens with investments by people backdating their investments so that when they cash them in they are worth more money. This also occurs in tax return because people write off more things in order to save more money. Ariely's reasons for cheating explain why there is a rise in identity theft because credit cards and such are one step away from money, so they are easier to rationalize stealing them than money ever was before, even though these objects virtually are money in a different form. Companies, such as airlines, legitimately steal from customers by never touching their money, but limiting what they are able to do with their non monetary substance such as miles towards a flight.

Predictably Irrational-Chapter 11: Summary & Response

         In this chapter of Dan Ariely's book, Predictably Irrational, he discussing the honesty of people and the conditions under which they become dishonest. Ariely begins his discussion by analyzing how white collar crimes are much more severe and common in terms of dishonesty and involve much more money than direct robberies that occur. Ariely point out, though, that these white collar crimes are treated much less severely, and wonders why this is. He then discusses a series of experiments he conducted with some of his colleagues to test the dishonesty of people who are generally perceived as honest. The first experiment he conducted came to the conclusion that honest people do cheat when given the opportunity, but once tempted with cheating the risk of being caught is not influential in whether or not people cheat. Ariely states that honesty truly does prevail in most cultures due to the stimulation by reward, but when it is only a little dishonest our superego stays out of the picture and people are dishonest. From the next experiment conducted, the conclusion was that when people are reminded of morality, they are less likely to be dishonest. Ariely then discusses how professionalism is declining in our society. The final experiment Ariely describes is one that resulted in the conclusion that when we are reminded of morality right before, we are more likely to be honest in whatever activity we are performing next. So, Ariely concludes that people will cheat when given the chance, but are less likely to if they are reminded of morality before the opportunity to cheat is given.
         According to Ariely, honesty is the best policy because with honesty there is some sort of reward given to people, which is what they are influenced by to be honest, whether that be a clear conscious or something material. In order to curb dishonesty in our lives we could think about the morality of what we are doing and think of the reward we get for being honest. On a daily basis, students deal with temptations such as cheating in a class in order to get ahead, stealing in order to save money, and lying in order to give a valid excuse for themselves. On a daily basis students will copy homework or cheat on homework, which they rationalize by saying that is saves them time and gives them more time to sleep, which they really need or by saying that they really need to get the answers right otherwise they might do poorly in the class. Additionally students are tempted to steal and rationalize stealing things like utensils and fruit from the dining hall, which they rationalize by saying that they are paying an exorbitant amount of money in order to go to school and eat here, so it's the least the school could do. Another temptation of students is to lie to professors about why they were not in class, which they rationalize by saying that sometimes they just need a break and they cannot afford for their grade to go down just because they were not physically sitting in a room for an hour.

Predictably Irrational: Summary & Response

       In chapter two, The Fallacy of Supply and Demand, of his book, Predictably Irrational, author Dan Ariely presents the results of his studies of arbitrary coherence and anchoring. The first concept Ariely explains is imprinting, a concept brought about by Konrad Lorenz, which is when an initial decision is made and that decision is stuck with. Ariely then explains the term anchoring as giving a certain value to an item, this is the initial value that is given to an item. He then explains arbitrary coherence, which is the concept that although initial prices are arbitrarily assigned, they are established in our minds and will shae present and future prices. Ariely goes on to describe a study done at MIT which showed that once a person is willing to pay a certain price for one product, their willingness to pay for other products is relative to this first price, or the anchor. He cites a study involving being payed to listen to unpleasant sounds, which showed that people remain anchored to initial price, they do not flip flop very easily, that our first decisions resonate over a long period of time and decisions. Ariely next explains the concept of herding where we base our opinions on other people's behaviors and our actions follow theirs. He expands on this by presenting self-herding, which is where we base our future actions off of our initial interaction. Next, Ariely presents that sensitivity to price changes relies on the memory of the past price. This sensitivity can be altered if the product changes along with the price in order to reflect the price change.
        Anchoring is the first encounter we have with the value of something, determining our perception of the price of the product in the future.  Arbitrary coherence is the concept that although initial prices are arbitrarily assigned, they are established in our minds and will shae present and future prices.  By buying this used car and putting in that much work, the student will think that the prices of the other items are probably too  high to be worth it since they got a car for only $3000 and were able to see the work they needed to put in ot get this car. Businesses get consumers to pay higher prices for items anchored in their memories by altering the product in question. They make the product appear to be better through its display, surroundings, advertising, etc. The fallacy of supply and demand is that people base their sensitivity to price changes on past memories, no on the level of demand.