if I show you this photo most of you can
identify a cute fluffy bear flying
through the clouds
and if I show you with this image some
of you might see a human male face on
the top right corner so these photos
show a visual phenomenon known as
pareidolia which is seeing patterns
seeing illusions that really exist
just like seeing faces in clouds and
some of these patterns or illusions that
we can see are really interesting for
example in this image I can see the
whole Trump and who knows what you can
see so moving on to this photo this is
the logo for the Swiss chocolate to blur
all where you have an icon of the Swiss
Alps in the background but if you zoom
in if you take a closer look you will
find a bear hidden in that logo now I’ve
been eating that chocolate for years and
I didn’t even know there was a bear
hidden in that logo moving on to this
photo known as the Moors face it was
taken by NASA and it fueled alien
theories everywhere into thinking there
was life on Mars just because of that
presumed human face
so these photos show our tendency our
proclivity to making wrong visual
conclusions wrong judgments of our
surroundings and it led me to think
about decision making how we make our
decisions raise your hands if you think
so I once like you I once thought that I
made logical choices that I made
rational decisions that I was rational
until I came across this question if we
make frequently wrong decisions with
what we see given that site it’s
something instinctive something we use
every single day of our lives aren’t we
more likely to make wrong decisions with
what we think what we choose what we
plan or what we believe if we make wrong
decisions with simple objects lying
everywhere around us aren’t we more
likely to make irrational decisions with
complex complicated ideas in our lives
one of the irrational decisions we human
beings can make is racism now you might
think what does racism discrimination
has to do with irrationality but think
of that Leonardo DiCaprio scene in the
movie Django Unchained
in that scene DiCaprio casting as the
character called candy who was a rough
and cruel slave owner and white
supremists he grabs a skull of a former
black servant of his he cracks that
skull open and he says in the skull of
the African here the area associated
with submissiveness civility is larger
than any other human or subhuman species
on planet Earth Wow what let such a nice
guy like candy here to believe in the
superiority of the white race over the
black race what let candy to have such
despicable ideas about human beings
why did candy make that irrational
decision the behavior candy showed here
is actually a very famous kind of a
rational decision making we all can make
called confirmation bias confirmation
bias is simply choosing the evidence
that support your belief while ignoring
any other evidence against it
it is seeing what you believe seeing
what you want to see in the case of
candy here candy was raised up
completely believing at the truthfulness
of his actions he showed a textbook
example of confirmation bias to the
extent that he believed the vague
scientific evidence of white supremacy
racism and discrimination are a
byproduct of confirmation bias of
irrationality now imagine we just remove
confirmation bias from the equation does
that mean we just put an end to racism
now you might guys you guys might think
that I’m not rational I’m not racist
you’re not racists so how can our
decisions
how can your decisions be biased how can
they be rational but actually human
irrationality runs even deeper our
environment our surroundings not just
our beliefs can all affect and influence
our decisions more than you realize
raise your hands if you think you are
shopping addicts you’re addicted to
shopping where are the rich people okay
so I don’t want to discourage you
shopping addicts or buying experts from
going shopping but it is likely that the
choices you make that the decisions you
make are not logical are not rational so
a very famous experiment showed how
choices basically paralyzes consumers
and causes them to start thinking
irrationally
there was once a tasting booth in a
store for selling jams where you had
booth a that had six choices six
different varieties of jam and Boothby
with 24 choices 24 different varieties
of jam the six doses of jam attracted
30% of tasters to buy while the 24
choices after acted only 3% so we tend
to few choices as a test and like a test
or an exam can make you too nervous to
think correctly too many choices can do
just this
more choices less logic because of the
huge amount of choices and changes
around us while shopping you don’t
actually think as much as you think you
do 40% of consumers change their minds
at the point of purchase because of
something new they see learn or do so
irrelevant factors like the comments of
your friends the music played in a
restaurant the design of a certain
product can all affect an influence your
decision more than the quality of the
service you want we also tend to pick
choices relative to other choices so how
does that work so this was an experiment
made by Professor Dan Ariely who is a
professor of behavioral economy which
you don’t need to know about anyway
professor Dan here gave this magazine
subscription to a bunch of MIT students
and he told them to pick either the web
subscription for $59 the print
subscription for 125 or both also from
125 so naturally most of these students
picked the last two-for-one option one
might reason that the second option was
useless because no one chose it so then
we meet the experiment but this time he
removed the second unchosen option and
the results changed the first option
became the most popular and the last
option became the least popular so then
concluded that the mere presence of the
second useless option made the other
options seem fantastic who in the right
mind would have a print subscription for
125 or web subscription for 59 when they
can own both just for 125 so when we
have a group of choices a really bad
choice who make the other choices seem
fantastic even though it is irrelevant
you might not need to even buy a
magazine when we have a group of choices
we make relationships between choices
that don’t really exist and then we make
our decisions based on these
relationships if you can’t see the
rationale T of this think about this
sentence 100% of people who eat bread
will eventually die
now of course if someone is unfortunate
they who eventually die you will not die
because of eating bread so like the
author of this sentence made the
relationship between eating bread and
dying we make relationships that don’t
exist between choices and each other
leading us to make irrational decisions
so as a shopper as a consumer your
environment your surroundings your
beliefs or the other choices presented
to you can all affect and influence your
decision and unfortunately marketers
corporations big companies know how to
use our irrationality to affect our
decisions to make us buy things we don’t
need things we don’t necessarily want in
our lives
things that are possibly useless and
this can have a much bigger a much more
drastic effect on the economy as a whole
because if people start if we start
making irrational decisions on a global
scale on a massive scale on an economic
scale an entire economy can collapse in
the 2008 Wall Street collapse or 2.3
million people lost their jobs in the US
alone one of its main reasons was that
people took out loans that they did not
understand and could not possibly afford
what is even more surprising was that
bank managers bank executives agreed to
give people these loans so in this case
we had an irrational decision made by
consumers normal natural people and
executives
professionals train people if we better
understand irrational decision making we
will be taking one step closer to
solving financial crises like the one
our country is now experiencing yes we
do have the power to change our reality
but only if we accept and understand our
weaknesses so decision and rationality
can also have a special impact on young
people on us youth but let’s face it we
as youth or branded as risk-taking
irrational idiots at least by my parents
my mom and dad and at most by all of
your parents so the problem is during
puberty during adolescence a large
portion of the decision-making process
of the brains of teenagers change
dramatically leading the leading them to
make impulsive or what our parents call
super decisions while reckless decisions
impulsive behavior shouldn’t be
stigmatized and seen as a problem by our
parents by our society it is simply the
reflection of a social change of a
biological change that should be
nurtured regulated and understood by
your parents by your friends by your
teachers and even by you now I’m not
telling you to go out there and do
whatever you’re thinking of doing after
the event but I believe it is our
responsibility to change our society and
make them accept our nature so now we
know that every human being on earth
every one of us can make irrational
decisions and these irrational decisions
can lead us to lose money make poor
choices or have false beliefs so when we
human beings say that we are rational
that we are logical this is actually a
grave a huge mistake the words rational
and human can go along even in one
sentence
our behavior our actions our decisions
are far from logical and that is
actually a part of what makes us human
but we can learn from irrational
decision making we can benefit from it
we can now understand how infinitely
small how infinitely small our knowledge
in controlling the universe really is by
first understanding the irrationality of
our actions if you even want to prevent
yourself from making too much irrational
decisions too much reckless decisions in
the future you can follow these three
simple tips one be with friends who will
keep you grounded have friends with
different ideas different perspectives
different intellect from you who always
challenge your ideas – if it sounds good
question it we always liked the idea of
winning of being correct that we
sometimes accept that easy equals true
when in fact it is not ant we search for
contradictory evidence if you think
something will happen
try researching diarrhea searching why
it will not if you think you might get
rich in the future try researching why
you might get poor it may change your
perspective it may prevent you from
being biased so yes you are irrational
but you can achieve rational irrational T thank you
identify a cute fluffy bear flying
through the clouds
and if I show you with this image some
of you might see a human male face on
the top right corner so these photos
show a visual phenomenon known as
pareidolia which is seeing patterns
seeing illusions that really exist
just like seeing faces in clouds and
some of these patterns or illusions that
we can see are really interesting for
example in this image I can see the
whole Trump and who knows what you can
see so moving on to this photo this is
the logo for the Swiss chocolate to blur
all where you have an icon of the Swiss
Alps in the background but if you zoom
in if you take a closer look you will
find a bear hidden in that logo now I’ve
been eating that chocolate for years and
I didn’t even know there was a bear
hidden in that logo moving on to this
photo known as the Moors face it was
taken by NASA and it fueled alien
theories everywhere into thinking there
was life on Mars just because of that
presumed human face
so these photos show our tendency our
proclivity to making wrong visual
conclusions wrong judgments of our
surroundings and it led me to think
about decision making how we make our
decisions raise your hands if you think
so I once like you I once thought that I
made logical choices that I made
rational decisions that I was rational
until I came across this question if we
make frequently wrong decisions with
what we see given that site it’s
something instinctive something we use
every single day of our lives aren’t we
more likely to make wrong decisions with
what we think what we choose what we
plan or what we believe if we make wrong
decisions with simple objects lying
everywhere around us aren’t we more
likely to make irrational decisions with
complex complicated ideas in our lives
one of the irrational decisions we human
beings can make is racism now you might
think what does racism discrimination
has to do with irrationality but think
of that Leonardo DiCaprio scene in the
movie Django Unchained
in that scene DiCaprio casting as the
character called candy who was a rough
and cruel slave owner and white
supremists he grabs a skull of a former
black servant of his he cracks that
skull open and he says in the skull of
the African here the area associated
with submissiveness civility is larger
than any other human or subhuman species
on planet Earth Wow what let such a nice
guy like candy here to believe in the
superiority of the white race over the
black race what let candy to have such
despicable ideas about human beings
why did candy make that irrational
decision the behavior candy showed here
is actually a very famous kind of a
rational decision making we all can make
called confirmation bias confirmation
bias is simply choosing the evidence
that support your belief while ignoring
any other evidence against it
it is seeing what you believe seeing
what you want to see in the case of
candy here candy was raised up
completely believing at the truthfulness
of his actions he showed a textbook
example of confirmation bias to the
extent that he believed the vague
scientific evidence of white supremacy
racism and discrimination are a
byproduct of confirmation bias of
irrationality now imagine we just remove
confirmation bias from the equation does
that mean we just put an end to racism
now you might guys you guys might think
that I’m not rational I’m not racist
you’re not racists so how can our
decisions
how can your decisions be biased how can
they be rational but actually human
irrationality runs even deeper our
environment our surroundings not just
our beliefs can all affect and influence
our decisions more than you realize
raise your hands if you think you are
shopping addicts you’re addicted to
shopping where are the rich people okay
so I don’t want to discourage you
shopping addicts or buying experts from
going shopping but it is likely that the
choices you make that the decisions you
make are not logical are not rational so
a very famous experiment showed how
choices basically paralyzes consumers
and causes them to start thinking
irrationally
there was once a tasting booth in a
store for selling jams where you had
booth a that had six choices six
different varieties of jam and Boothby
with 24 choices 24 different varieties
of jam the six doses of jam attracted
30% of tasters to buy while the 24
choices after acted only 3% so we tend
to few choices as a test and like a test
or an exam can make you too nervous to
think correctly too many choices can do
just this
more choices less logic because of the
huge amount of choices and changes
around us while shopping you don’t
actually think as much as you think you
do 40% of consumers change their minds
at the point of purchase because of
something new they see learn or do so
irrelevant factors like the comments of
your friends the music played in a
restaurant the design of a certain
product can all affect an influence your
decision more than the quality of the
service you want we also tend to pick
choices relative to other choices so how
does that work so this was an experiment
made by Professor Dan Ariely who is a
professor of behavioral economy which
you don’t need to know about anyway
professor Dan here gave this magazine
subscription to a bunch of MIT students
and he told them to pick either the web
subscription for $59 the print
subscription for 125 or both also from
125 so naturally most of these students
picked the last two-for-one option one
might reason that the second option was
useless because no one chose it so then
we meet the experiment but this time he
removed the second unchosen option and
the results changed the first option
became the most popular and the last
option became the least popular so then
concluded that the mere presence of the
second useless option made the other
options seem fantastic who in the right
mind would have a print subscription for
125 or web subscription for 59 when they
can own both just for 125 so when we
have a group of choices a really bad
choice who make the other choices seem
fantastic even though it is irrelevant
you might not need to even buy a
magazine when we have a group of choices
we make relationships between choices
that don’t really exist and then we make
our decisions based on these
relationships if you can’t see the
rationale T of this think about this
sentence 100% of people who eat bread
will eventually die
now of course if someone is unfortunate
they who eventually die you will not die
because of eating bread so like the
author of this sentence made the
relationship between eating bread and
dying we make relationships that don’t
exist between choices and each other
leading us to make irrational decisions
so as a shopper as a consumer your
environment your surroundings your
beliefs or the other choices presented
to you can all affect and influence your
decision and unfortunately marketers
corporations big companies know how to
use our irrationality to affect our
decisions to make us buy things we don’t
need things we don’t necessarily want in
our lives
things that are possibly useless and
this can have a much bigger a much more
drastic effect on the economy as a whole
because if people start if we start
making irrational decisions on a global
scale on a massive scale on an economic
scale an entire economy can collapse in
the 2008 Wall Street collapse or 2.3
million people lost their jobs in the US
alone one of its main reasons was that
people took out loans that they did not
understand and could not possibly afford
what is even more surprising was that
bank managers bank executives agreed to
give people these loans so in this case
we had an irrational decision made by
consumers normal natural people and
executives
professionals train people if we better
understand irrational decision making we
will be taking one step closer to
solving financial crises like the one
our country is now experiencing yes we
do have the power to change our reality
but only if we accept and understand our
weaknesses so decision and rationality
can also have a special impact on young
people on us youth but let’s face it we
as youth or branded as risk-taking
irrational idiots at least by my parents
my mom and dad and at most by all of
your parents so the problem is during
puberty during adolescence a large
portion of the decision-making process
of the brains of teenagers change
dramatically leading the leading them to
make impulsive or what our parents call
super decisions while reckless decisions
impulsive behavior shouldn’t be
stigmatized and seen as a problem by our
parents by our society it is simply the
reflection of a social change of a
biological change that should be
nurtured regulated and understood by
your parents by your friends by your
teachers and even by you now I’m not
telling you to go out there and do
whatever you’re thinking of doing after
the event but I believe it is our
responsibility to change our society and
make them accept our nature so now we
know that every human being on earth
every one of us can make irrational
decisions and these irrational decisions
can lead us to lose money make poor
choices or have false beliefs so when we
human beings say that we are rational
that we are logical this is actually a
grave a huge mistake the words rational
and human can go along even in one
sentence
our behavior our actions our decisions
are far from logical and that is
actually a part of what makes us human
but we can learn from irrational
decision making we can benefit from it
we can now understand how infinitely
small how infinitely small our knowledge
in controlling the universe really is by
first understanding the irrationality of
our actions if you even want to prevent
yourself from making too much irrational
decisions too much reckless decisions in
the future you can follow these three
simple tips one be with friends who will
keep you grounded have friends with
different ideas different perspectives
different intellect from you who always
challenge your ideas – if it sounds good
question it we always liked the idea of
winning of being correct that we
sometimes accept that easy equals true
when in fact it is not ant we search for
contradictory evidence if you think
something will happen
try researching diarrhea searching why
it will not if you think you might get
rich in the future try researching why
you might get poor it may change your
perspective it may prevent you from
being biased so yes you are irrational
but you can achieve rational irrational T thank you
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