There is so much about human psychology that we probably don't know and what we do know is astounding. We humans do work in illogical ways, but it is only illogical in the modern sense, as these illogical ways we act have an evolutionary advantage, that is the reason why it exists in nature.
Understanding how these illogical nudges work to produce outcomes is a totally new field or study called, behavioral economics. This is noble prize-winning research that really shows how both vulnerable but guarded we are. As much as I have consumed on this subject, which is just a faint glimpse, it appears that we can boil down the human psyche into four, we can say really two part. We don't like uncertainty and high risk to reward, and we like status and attractiveness.
How business use these for competitive advantages, exploit opportunities or solve problems is usually not done but by a very few. It is the logical correlations and logical goals that win the day and to allow any experimentation or curiosity to find out more about human behavior is too risky and doesn't reward in the short term. But a simple dabble in the human illogical pool can results into big positive gains, as behavioral economics has shown in the research. Those bold enough to jump from the high board to the unpredictable and learn to swim in it will develop a worthwhile lifetime skill.
