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A lecture by Melih Arat [email protected] Sway The Irresistable Pull of Irrational Behaviour Ori Brafman and Rom Brafman

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SwayA lecture by Melih Arat at Epoka University

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Page 1: Sway

A lecture by Melih [email protected]

SwayThe Irresistable Pull of Irrational Behaviour

Ori Brafman and Rom Brafman

Page 2: Sway

A lecture by Melih [email protected]

Sway Pouring asbestos to

the heart O-Ring seal of

Challenger “We don’t know the

consequences.” A woman comes to

emergency room by panic. Her son has a stomach ache.

Page 3: Sway

A lecture by Melih [email protected]

SWAY In this book we'll

explore several of the psychological forces that derail rational thinking. Wherever we looked--across different sectors, countries, and cultures--we saw different people being swayed in very similar ways.

Page 4: Sway

A lecture by Melih [email protected]

KLM Flight 4805 Captain

Jacob Van Zanten

A bomb explosion at Las Palmas airport

KLM 4805 at Tenerife airport

Page 5: Sway

A lecture by Melih [email protected]

The Power of Loss Aversion Jordan Walters of Smith

Barney A client wants to buy a

biotech compony shares.

You buy it from 47 dollar It falls to 42 dollar If it goes back to 47

dollar, I will sell. It goes down to 37 dollar.

The commitment and aversion to loss…

Page 6: Sway

A lecture by Melih [email protected]

The Swamp of Commitment 20 USD Bill Game Everybody is free to

bid; there are only two rules. The first is that bids are to be made in $1 increments. The second rule is a little trickier. The winner of the auction, of course, wins the bill.

Page 7: Sway

Lyndon Johson / Vietnam Story

The North Vietnamese communists seemed like weak opponents. They lacked a powerful army, sophisticated technology, money, and broad international support.

Page 8: Sway

A lecture by Melih [email protected]

SoBe

The first group, a control group, took the test without drinking any SoBe.

The second group was told about the intelligence-enhancing properties of SoBe.These students also were required to sign an authorization form allowing the researchers to charge $2.89 to their university account for the SoBe.

Finally, a third group of students was given the same spiel about SoBe but was told that the university had gotten a discount and that they would only be charged eighty-nine cents for the drink.

A Research is made using SoBe Adrenaline Rush, a beverage that claims to increase mental acuity.

Page 9: Sway

A lecture by Melih [email protected]

Ohio State University Season Theater Tickets " One-third of them

received a regular, full-priced, $15 ticket;

one-third received a $2 discount on their tickets;

the rest received their tickets at a discount of $7.

Page 10: Sway

A lecture by Melih [email protected]

Joshua Bellhttp://www.youtube.com/watch?v=myq8upzJDJc

We can only decide by the labels. We cannot perceive the reality.

Page 11: Sway

A lecture by Melih [email protected]

The Diagnosis Bias: The Draft Selection Order Staw and Hoang

developed a clever empirical method for judging who the best players are.

scoring (points per minute, field-goal percentage, and free-throw percentage);

toughness (rebounds per minute and blocks per minute); and

quickness (assists per minute and steals per minute).

Young Michale Jordan

Page 12: Sway

A lecture by Melih [email protected]

The New Lecturer Mr.----is a graduate

student in the Department of Economics and Social Science here at MIT. He has had three semesters of teaching experience in psychology at another college. This is his first semester teaching Ec 70. He is 26 years old, a veteran, and married. People who know him consider him to be a very warm person, industrious, critical, practical, and determined.

Mr.----is a graduate student in the Department of Economics and Social Science here at MIT. He has had three semesters of teaching experience in psychology at another college. This is his first semester teaching Ec 70. He is 26 years old, a veteran, and married. People who know him consider him to be a rather cold person, industrious, critical, practical, and determined.

Page 13: Sway

A lecture by Melih [email protected]

At the end of class… "good

natured, considerate of others, informal, sociable, popular, humorous, and humane."

"self-centered, formal, unsociable, unpopular, irritable, humorless, and ruthless."

Page 14: Sway

A lecture by Melih [email protected]

The Chameleon Effect In 1994 only twenty-

five of every hundred thousand American kids under the age of nineteen were diagnosed as bipolar. But by 2003 the number of cases had shot up by a staggering forty times.

Page 15: Sway

A lecture by Melih [email protected]

The Pygmalion Effect

Page 16: Sway

A lecture by Melih [email protected]

The Capilano Suspension Bridge Experiment The young female

assistant would ask each man to fill out a short survey. When he was finished, she would offer to tell him about the study when she had a little bit more time.

With that, she'd tear off a corner of the survey, jot down her name and number, and hand over the scrap of paper.

Page 17: Sway

A lecture by Melih [email protected]

Fairness vs. Procedufal JusticeWho wants to be a millionaire? "OK, audience, please use

your answer pads," instructed the host. "Please answer this question for Henri...What revolves around the earth? If you know, please answer, and if you don't know, please abstain. (A) The moon, (B) The sun, (C) Mars, (D) Venus. You must vote now. Thank you!“

Only 42 percent of the audience voted for the right answer, the moon. A full 56 percent voted for the sun revolving around the earth.

Page 18: Sway

A lecture by Melih [email protected]

The Split of 160 USD

Page 19: Sway

A lecture by Melih [email protected]

Radioactive Waste Story In 1993 the Swiss

government identified two small towns as potential nuclear waste depositories, but they didn't know how the townspeople would react. Would they be outraged? Or, understanding the importance of the nation's nuclear energy program, would they "take one for the team"?

50.8 percent of respondents agreed to put themselves at risk for the common good.

Page 20: Sway

A lecture by Melih [email protected]

GMAT Experiment Mock GMAT Test The First Group

“The test is for research”

The Second Group For each right answer

they will get 2,5 Average score 39 /

34,9

Page 21: Sway

A lecture by Melih [email protected]

The Southwest Airlines Approach The Crew Training The iniators and the

blockers

Page 22: Sway

A lecture by Melih [email protected]

The Shortcuts and Long Trip Let’s say you’re

travelling on a long trip, and you have a flat tire.