Chapter Two of Dan Ariely’s “Predictability Irrational”

In Chapter Two of Dan Ariely's "Predictability Irrational", the main points that he makes are that most of the time we have no idea about the value of certain products, but the main force that drives us to actually make purchases in the price tag on the item. Ariely's main points made in this chapter refer to the buyers perception of a specific product and not necessarily basing off of similar products prices or the competitions prices. He then goes on to discuss the idea of anchoring and how prices can be imprinted into our minds for various products. When that price is seen by consumers the first time, they believe that it may be the same price for the same product in other areas, therefore they may not have the desire to go search for a cheaper price.  People tend to pay a certain price for a product when they're first exposed to it, and this is the main force that drives anchoring. Ariely says that we shouldn't necessarily believe the first price we see on a product is going to be the same for the same product at a different store. He says that we should question ourselves and can't be so vulnerable to companies charging outrageous prices for their products. The idea of supply and demand is also brought up by Ariely, as he says that the demand for products tend to be more high then the supply, therefore companies can charge whatever price they want for a product and tend to get away with it.

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

Believing and Doubting Summary

In Peter Elbow’s “Believing and Doubting” the new idea of the doubting and believing games are brought up. Elbow begins by introducing how he came about with the idea of the doubting game, where he defined it as being similar to critical thinking that's the disciplined practice of trying to be as skeptical as possible with every idea we encounter. He stated that is it the opposite of the believing game,where we're disciplined through practice of trying to be as accepting or welcoming to every idea that we encounter. Elbow goes on to say that we honor systematic skepticism or the doubting game as the best form of thinking. It’s easy to doubt what’s perceived, but the whole point of systematic skepticism is to try to doubt what we find most obvious or true or right.

Chapter 2 of The Undercover Economist

In Chapter 2 of "The Undercover Economist," Harford explains that supply and demand isn't the only reason why people pay high prices. Hartford starts off the chapter using the London Eye as an example of scarcity power because it is a unique landmark, but it's also something that's optional. Hartford stated, "Everywhere you look around the Eye you can see vendors with scarce resources, trying to exploit that scarcity. Costa Coffee is the only coffee bar in the immediate area, for instance (page 31)." Hartford says that people can choose to not go to the London Eye, but because it's there and it's so unique, it draws people to pay money to be able to go. Hartford also brings in the idea that supermarkets have bought into the idea of price targeting.  He says that, "Above the main concourse of London’s Liverpool Street station, there’s a Marks and Spencer “Simply Food” store, catering to busy commuters on the way in and out of London (page 40)." This idea is prevalent to his main idea in his writing because he talks a lot about how important it is to have a good location if you're a retailer. Having a market right in this specific area, it can provide the retailers for a much better advantage when consumers come by because there are thousands of people who pass by every single day. 

Chapter 1 of Undercover Economist

In Chapter One of Tim Harford’s book, “The Undercover Economist,” the idea of strength of scarcity and why retailers have the ability to over charger consumers is explored in the chapter. Hartford goes into detail in this chapter by beginning to discuss the daily lives of a commuter and how they're all exposed to retailers along the way. For example, Hartford discusses the step by step process of being a consumer, saying how commuters will get off the train and will go to the local Starbucks because it's right next to the stop. Location is key in this situation, and Hartford goes into detail about why location plays such a pivotal role in making a profit as a retailer. Hartford stated, "Yet commutes also produce common patterns—bottlenecks and rush hours—that are exploited by entrepreneurs the world over (page 5)." Hartford also talks about the role that competition plays when you're a retailer and also the role it plays in over charging consumers. He says how when a resource is tougher to come by, then the competition to get that item will be much tougher. This ultimately allows retailers to overcharge for items and it's tough for the consumers because of the hole it burns in their pockets.  When looking at this idea when it relates to a college degree, I believe that just because you have a college degree, doesn't necessarily mean you'll be able to get a job. For me personally, my goal is to become a sports anchor/reporter for television and the job market is extremely tough. Just because you may have a degree, doesn't mean you'll get a job right out of college.