Why are people irrational and how can this be used in sports?


When we carry out the projects, our clients quite often try to hear a clear explanation on why people are actually irrational. Especially when any person who studied the economy, faced with a reverse approach, which continues to exist in varying degrees to this day all over the place.

It can be best explained to people who have had experience in trading stocks or currencies in order to earn on volatility. If a trader does not have a fixed strategy, when things start going wrong, the human brain goes crazy, trying to regain losses.

This is the evolutionary feature of our brain – we extremely dislike parting with what we have. This phenomenon was studied in detail from the point of view of behavioral economics. In particular, thanks to the Nobel Prize winner Daniel Kahneman and his long-time associate Amos Tversky, there appeared the name of this phenomenon – the loss aversion.

In psychology, this phenomenon is called the endowment effect. It’s pretty well known in marketing and sales as well. Many sellers are trying to let the product into the hands of a potential buyer, since the probability of purchase increases significantly in this case. With the development of neuromarketing, this phenomenon began to be studied from the standpoint of this discipline. Retailers got especially interested in this phenomenon.

However, it is used all over the place, including in gambling.

Beginning to understand this phenomenon, we see the effect of a number of hormones, which in turn try to preserve for us 1) the ability to survive and 2) the current status. And this, in turn, is connected with the primary cause of our existence – the reproductive function.

This root cause creates many different phenomena that during the evolutionary path of our species helped us to more effectively realize our reproductive function.

It just so happens that evolution does not just fail to keep pace with the development of civilization and technology, but has its own view on our species development: during the past 25 thousand years, the human brain has been decreasing faster than it grew before.

In turn, we are trying to “outsmart” nature, using the peculiarities of our brain for selfish purposes, those that simply did not exist before.

But what’s the reason for people being irrational? There is a division into the conscious mind (System 2) and the unconscious mind (System 1).

We identify the conscious mind with our own personality, but the reality is that it gets little involvement in our vital activity process. Every day we have to make several thousand decisions, and if our brain did not possess one cunning trick, a normal life would simply be impossible.

What kind of trick is that? The somatic markers hypothesis explains that our brain creates its own somatic (emotional) marker for every event in our life. That’s why it is so difficult for kids to make a decision – they haven’t got enough experience.

However, when experience comes, it becomes possible to make quick decisions. It is the basis for various strategies for interaction with consumers (fans).

There are ways to turn off the conscious mind. For example, one of the ways I’ve described in the article called “How can we make fans think in a predictable way?”.

According to various estimates, between 90% and 99% of decisions are made by the unconscious mind on the basis of somatic markers. The exact number depends on the semantics that lie behind our understanding of the wording.

After all, logical thinking in its pure form makes the choice impossible in principle. This was proven by the experiments of Antonio Damasio, the author of the somatic markers hypothesis. People with the ventromedial prefrontal cortex disorders experience great problems with decision making. And these are the people who are guided primarily by logic in their decision-making process.

You can recall this from your own experience: you are choosing an expensive purchase, comparing characteristics for a long while, but you can not make a choice. And only when you get tired, you manage to make it. It may not even be the most logical choice, but you will find for yourself an explanation of why it is the best one.

Experiments have also shown that after controlling his/her actions, a person experiences a sharp decline – the brain no longer allows wasteful spending of a large amount of energy on the conscious mind, triggering a saving mode that helps you make choices based on somatic markers. You end up choosing the brand you’ve got a good emotional connection with.

So that’s why the brand is always important. And so are the positive somatic markers behind the brand.

How can we use irrationality in sports? The ways to apply it are many. I’m used to starting with fans. Because it’s the fans that bring the clubs a significant income (at least it should ideally be so). Read the #AlienForClubs series of articles, in which I offer interesting practical solutions for clubs. You can always order the development of a detailed strategy for your club.

But fans are only the beginning, because football players and other clubs employees are also humans, so their brains are irrational as well. In this case, we can use a number of strategies from different scientific disciplines that raise motivation, reduce salary expectations, and increase efficiency. We will be happy to do it specifically for your club as well, and the result is guaranteed.

Just make your request by sending me a message on E-mail We will reply you within 24 hours.


Best regards,

Leon The Alien


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SEE ALSO: Why it is important to understand how your fans perceive happiness


Images: Saksham Gangwar, Giphy