When one thinks of business, one thinks of rational decisions. Rarely does one ever believe that irrational decisions would make for a wise business choice, but they sometimes do. An example of such a feat would be regarding decisions that affect the business in the long term. Although a decision to expand may cost a company at the beginning, it would save them even more in the long run. Would such a decision be irrational?
Ariely uses an example of the various countries of whom the citizens have opted to become organ donors. They do so not all entirely out of the kindness of their hearts, but too often is it because they failed to read the instructions clearly; thus resulting in them opting to become an organ donor. Now this is a mere misunderstanding on the drivers part, but from a business standpoint, this one tiny misunderstanding could cost the company money. Too often are we preoccupied and unable to fully think out our decisions and make them rational. Such irrationality can be costly for any business.
The busy life of a average human can often tend to result in such irrational decisions. Such as the case of the doctor which suggested hip replacement to a patient, and then realized that he had forgotten to try ibuprofen as a cure to the patients ailments.
Business is a fast pace industry, and yes decisions often have to be made on the spot. It is truly amazing how a second thought about a decision could be what makes or breaks a company.
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