Jatin Gupta’s Reviews > Predictably Irrational: The Hidden Forces That Shape Our Decisions > Status Update

- If people had no memory of past prices, the consumptions of milk & wine would remain essentially the same, as if the prices had not changed.

- In other words, the sensitivity we show to price changes might, in fact, a result of our memory for that prices we have paid in the past and

**our desire for coherence with our past decisions** - not at all a reflection of our true preferences or our level of demand

- Socrates said that the unexamined life is not worth living.

- Initial prices are arbitrary and can be influenced by responses to random questions; but once those prices are established in our minds, they shape not only what we are willing to pay for an item. == "ARBITRARY COHERENCE"

- naturalist Konrad Lorenz discovered that goslings, upon breaking out of their eggs, become attached to the first moving object they encounter.

To break the chain of relativity - Decide consciously, reduce the size of the circle.

We focus on the relative advantage of one thing over another, and estimate value accordingly.