A week ago I put up a book review of Predictably Irrational, from Dan Ariely.  The Logic of Life: The Rational Economics of an Irrational World is the opposing view to Predictably Irrational, to the extent that it seems that much of the author’s writings were aimed directly at Mr. Ariely’s thought process and research. 

 

Tim Harford’s writing is humourous and easy to digest.  His analogies and examples are sometimes a little strange, but are still useful in framing the subject matter.  The author comes from a different viewpoint than Mr. Ariely, taking the position that he emerged from the more real-world environments of business and the markets (insinuating that those within the walled gardens of academia are potentially out of touch with the real world).  While I agree for the most part with the assertion that academia can sometimes be out of touch with the outside world, I am also certain that markets and businesses rely on data that can also be highly flawed (think “Lies, damn lies and statistics” as well as Phil Rosenzweig’s book The Halo Effect: … and the Eight Other Business Delusions That Deceive Managers).  To that end, I see the value and weaknesses of both books thought processes.

Tim Harford’s fundamental message which is that humans make decisions that may seem irrational but are actually made using a conscious (and sometimes unconscious) cost/benefits formula is off the mark for me.  I firmly believe that there is no black or white to this particular subject matter and feel as though both authors got some things right.  Call me a relativist, but I believe that humans are completely irrational under certain circumstances and completely rational other times.  I can’t help but think that things like love, addiction, physical state, mental state and other human conditions can play havoc with our logical, calculating mind.

All in all the book is insightful, interesting and more importantly a fun read.  Recommended for those with an interest in the human condition and how we as humans make good, bad and ugly decisions.