Dan Ariely's Predictably Irrational is one of my favorite books that I have ever read. The topic combination of economics and the truth behind human nature was a match made in heaven. Today, I recall one study that Ariely specifically discusses: relativity.
The understanding that humans are bound to act against the rational decision making is tough for many stiff minded scholars to grasp. Sure, we can assume that all competitors will reach economies of scale, allowing the customer the lowest price at all times. In reality, the key for any goods and services does not matter in the grand scale of things, but more so what is going between you and the competitor in the vicinity. This delves into matters of recognizing the differences between Comparative and Absolute advantages.
Ariely's best relativity example in my opinion was the relativity of beauty. The main argument is that if you were to go out with one of your friends (preferably one who looks more or less alike), whoever is naturally more "attractive" will ultimately have an easier time finding a mate. Reasoning? Yes, justification exists.
Say you are set to compare 3 subjects. A and B would be both you and your closely (yet less attractive) looking friend. C, on the other hand, will be a person similar attractiveness to A, yet will look completely different (blonde hair and blue eyes, or vice versa to your own traits). Your admirer will look at all 3 of the potential mates, but find a natural base of relativity when judging A and B. Because there is a benchmark for A to be judged, the ability to recognize attractiveness is likely to ensue, allowing a higher probable victory over C.
While this will never be a 100% sure thing, I can state that the relativity theory will up the probability higher than a standalone challenge between A and C. For more information, purchase Predictably Irrational and enjoy the rest of the fun, exciting tests that Ariely runs on the guinea pig undergrads of Duke University!
Note: Ariely advises to never let your less attractive friend know your actions. I advise the same.
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