ISS : Solution Essays

Throughout Predictably Irrational, we are presented with research that shows us that while we think we are in the driver’s seat of our decisions, we are “pawns in a game whose forces we largely fail to comprehend.” For this question, we would like you to become a behavioral economist. You will describe a situation where you have seen people behave in a manner that is irrational. Then we would like you to design an experiment which explains this irrationality. How will you divide participants into a control and treatment group? What potential issues might your experiment face? How would you overcome those issues? And finally, while you

obviously cannot perform your experiment, what answers might you find that explain why your subjects behaved so irrationally?

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