Question

What does it mean to design for predictably irrational people?

Answer 1

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From what I understood, you need to design some business strategies for predictably irrational people.

Predictable irrationality explains how our brains behave irrationally in systematic, predictable ways. Predictable irrationality is the cognitive version of optical illusions. Just as your eyes play tricks on you, so do your decision-making and judgement faculties.

Some examples of predictable irrationability are:

• Predictable irrationality is why 50-cent aspirin will more likely cure your headache than 1-cent aspirin, despite being the exact same (higher price drives the placebo effect).

• Predictable irrationality is why Surgeon General warnings can actually increase cigarette purchases (such warnings can increase fear and anxiety, and a nicotine addict's default cure for anxiety is ).
• Predictable irrationality is why people behave more honestly in a room that smells of citrus (our brains associate citrus smells with cleanliness and associate cleanliness with virtue).