Let me note, though, that the author makes claims about traditional full-information neoclassical economics that, while true, might be explained more simply by considering the possibility of costly information. Thus the apparently quirky phenomenon of the real estate agent swaying a buyer by showing the buyer a slightly less good version of one of the houses the buyer is considering, which appears to be a violation of the independence of irrelevant alternatives axiom (this story summarizes the phenomenon) might be explained more simply. The agent provides the buyer with very relevant information about the shape of his choice set. Another story, in which Professor Ariely and a colleague sell Lindt truffles at 15 cents and Hershey kisses at 1 cent, and then reprice the truffles at 14 cents and the kisses for free, which they employ to make a case against FREE! as a marketing tool that distorts peoples' behavior, might better be interpreted as good old relative prices and marginal-utility-of-the-last-penny. Social norms, which Professor Ariely suggests are sometimes at odds with market norms, might simply exist to conserve information costs.
We thus have intellectually challenging reading, and a different look at human interaction, but not necessarily a manifesto for the undoing of neoclassical economics.
(Cross-posted to Cold Spring Shops.)