Many people who make their living in scientific fields would classify themselves as rational beings, people who make decisions based on facts. But in reality, many situations are not so cut and dry. Often choices need to be made about situations that involve elements you can't control, like the economy, the price of goods and services you buy, the weather, customer attitudes, employee loyalty.

 

"I don't think rationality is the golden standard," says Dan Ariely, a Duke professor and author of "The Upside of Irrationalilty" and "Predictably Irrational." "We need to think about what creates the best structures, incentives, motivation - and rationality is not always that." He thinks that businesses need to "understand the irrationality" of their employees and customers and take that into account when making decisions.