HUMAN RESOURCE MANAGEMENT

CLASS PRESENTATION

Presented by:-Rajan Nhemaphuki 071MSTIM160

RELATIVITY PREDICTABLY IRRATIONAL BY DAN ARIELY

Why Everything Is Relative—Even When It Shouldn’t Be

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SUBSCRIPTIONS Advertisement 1

Welcome to

The Economist Subscription Center

Pick the type of subscription you want to buy or renew

Economist.com Subscription-US $59.00

One year subscription to Economist.com

Includes online access to all the articles from The Economist since 1997

Print Subscription- US $125.00

One year subscription to the print edition of The Economist

Print and Web Subscription- US $125.00

One year subscription to the print edition of The Economist

And online access to all the articles from The Economist since 1997

Compare Your Choice with

MIT student Choice

Choices of 100 of Student MIT’s

Sloan School of Management

16

0

84

Internet OnlySubscription-US

$59.00

Print OnlySubscription-US

$125.00

Print and InternetSubscription-US

$125.00

0

10

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80

90

Since nobody wanted “Print

Only Option”, author removed

“Print only option”, What do

you think would happen?

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SUBSCRIPTIONS Advertisement 2

Welcome to

The Economist Subscription Center

Pick the type of subscription you want to buy or renew

Economist.com Subscription-US $59.00

One year subscription to Economist.com

Includes online access to all the articles from The Economist since 1997

Print and Web Subscription- US $125.00

One year subscription to the print edition of The Economist

And online access to all the articles from The Economist since 1997

Compare your choice with MIT

student

Choices of 100 of Student MIT’s

Sloan School of Management

68

32

0

10

20

30

40

50

60

70

80

Internet Only Subscription-US$59.00

Internet and Print Subscription-US $159.00

Comparing Decisions under two

cases

Advertisement 1 vs.

Advertisement 2

16

0

84

68

0

32

0

10

20

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90

Internet Only-US$59.00

Print Only-US$125.00

Internet and Print-US$125.00

Advertisement 1 Advertisement 2

What could have possibly changed their

mind?

Relativity

Compare Size of Centre Circle

We are always looking at the things around us

in relation to others

Although Centre Circles are same in size. Centre

Circle surrounded by small seems larger than

other

But there’s one aspect of relativity that

consistently trips us up.

“We not only tend to compare things with one

another but also tend to focus on comparing

things that are easily comparable

and avoid comparing things that cannot be

compared easily”.

What could have possibly changed their

mind?

It was mere due to presence of Decoy

(Print only option)

• After going through all option.

• We find Print only ($125) and Print and

internet ($125) is easy to compare

• Eureka moment, we realize Print and

Internet Option is far superior than Print

only option

• Our body releases dopamine (reward

chemical)

• Whereas its take bit of thinking to

decide between Internet only($59) and

Print and Internet option ($125)

• Thinking takes mental energy. Our

brain is energy efficient machine, most

of time it will take shortcuts.

• Because being continuously conscious

is very energy extensive

• So it skips comparing Internet only and

Print and Internet Option. And select

the Print and Internet Option

• Whereas in second case we are forced

to compare between these two option.

Conclusion

• We tend to compare things with one

another

• We also tend to focus on comparing

things that are easily comparable

• And avoid comparing things that

cannot be compared easily