Showing posts with label Dan Ariely. Show all posts
Showing posts with label Dan Ariely. Show all posts
Saturday, June 2, 2018
Saturday, August 27, 2016
Memento Mori
There
are a lot of possible connections one can draw between Roman times and
modern-day banking, but perhaps the most important of them is memento mori. At
the peak of Rome’s power, Roman generals who had won significant victories
marched through the middle of the city displaying their spoils. The marching
generals wore purple-and-gold ceremonial robes, a crown of laurels, and red
paint on their face as they were carried through the city on a throne. They
were hailed, celebrated, and admired. But there was one more element to the
ceremony: throughout the day a slave walked next to the general, and in order
to prevent the victorious general from falling into hubris, the slave whispered
repeatedly into his ear, “Memento mori,” which means “Remember your mortality.”
If I
were in charge of developing a modern version of the phrase, I would probably
pick “Remember your fallibility” or maybe “Remember your irrationality.”
Whatever the phrase is, recognizing our shortcomings is a crucial first step on
the path to making better decisions, creating better societies, and fixing our
institutions.
Cheating is Infectious
Cheating is common but that it is
infectious and can be increased by observing the bad behavior of others around
us. Specifically,
it seems that the social forces around us work in two different ways: When the
cheater is part of our social group, we identify with that person and, as a
consequence, feel that cheating is more socially acceptable. But when the
person cheating is an outsider, it is harder to justify our misbehavior, and we
become more ethical out of a desire to distance ourselves from that immoral
person and from that other (much less moral) out-group.
More
generally, these results show how crucial other people are in defining
acceptable boundaries for our own behavior, including cheating. As long as we
see other members of our own social groups behaving in ways that are outside
the acceptable range, it’s likely that we too will recalibrate our internal
moral compass and adopt their behavior as a model for our own. And if the
member of our in-group happens to be an authority figure—a parent, boss,
teacher, or someone else we respect—chances are even higher that we’ll be
dragged along.
Why It is Important to Prevent First Immoral Act to Happen?
THE BOTTOM LINE is that we should not view a single act of dishonesty as just one petty act. We tend to forgive people for their first offense with the idea that it is just the first time and everyone makes mistakes. And although this may be true, we should also realize that the first act of dishonesty might be particularly important in shaping the way a person looks at himself and his actions from that point on—and because of that, the first dishonest act is the most important one to prevent. That is why it is important to cut down on the number of seemingly innocuous singular acts of dishonesty. If we do, society might become more honest and less corrupt over time.
**
WITH
ALL OF this in mind, how can we fight our own moral deterioration, the
what-the-hell effect, and the potential of one transgressive act to result in
long-term negative effects on our morality? Whether we deal with fashion or other
domains of life, it should be clear that one immoral act can make another more
likely and that immoral acts in one domain can influence our morality in other
domains. That being the case, we should focus on early signs of dishonest
behaviors and do our best to cut them down in their budding stages before they
reach full bloom.
Dead Grannies
Over the course of many years of teaching, I’ve noticed that there typically seems to be a rash of deaths among students’ relatives at the end of the semester, and it happens mostly in the week before final exams and before papers are due. In an average semester, about 10 percent of my students come to me asking for an extension because someone has died—usually a grandmother. Of course I find it very sad and am always ready to sympathize with my students and give them more time to complete their assignments. But the question remains: what is it about the weeks before finals that is so dangerous to students’ relatives?
Most
professors encounter the same puzzling phenomenon, and I’ll guess that we have
come to suspect some kind of causal relationship between exams and sudden
deaths among grandmothers. In fact, one intrepid researcher has successfully
proven it. After collecting data over several years, Mike Adams (a professor of
biology at Eastern Connecticut State University) has shown that grandmothers
are ten times more likely to die before a midterm and nineteen times more
likely to die before a final exam. Moreover, grandmothers of students who
aren’t doing so well in class are at even higher risk—students who are failing
are fifty times more likely to lose a grandmother compared with non-failing
students.
In a
paper exploring this sad connection, Adams speculates that the phenomenon is
due to intrafamilial dynamics, which is to say, students’ grandmothers care so
much about their grandchildren that they worry themselves to death over the
outcome of exams. This would indeed explain why fatalities occur more
frequently as the stakes rise, especially in cases where a student’s academic
future is in peril. With this finding in mind, it is rather clear that from a
public policy perspective, grandmothers—particularly those of failing
students—should be closely monitored for signs of ill health during the weeks
before and during finals. Another recommendation is that their grandchildren,
again particularly the ones who are not doing well in class, should not tell
their grandmothers anything about the timing of the exams or how they are
performing in class.
To All Grandmothers Out There: Take
care of Yourselves at Final Times
Depletion
Depletion takes away some of our reasoning powers and with them our
ability to act morally. Still,
in real life we can choose to remove ourselves from situations that might tempt
us to behave immorally. If we are even somewhat aware of our propensity to act
dishonestly when depleted, we can take this into account and avoid temptation
altogether. (For example, in the domain of dieting, avoiding temptation could
mean that we decide not to shop for groceries when we’re starving.)
**
ON A
MORE serious note, these experiments with depletion suggest that, in general,
we would be well served to realize that we are continually tempted throughout
the day and that our ability to fight this temptation weakens with time and
accumulated resistance. If we’re really serious about losing weight, we should
get rid of temptation by clearing our shelves and refrigerator of all the
sugary, salty, fatty, and processed foods and acclimating to the taste of fresh
produce. We should do this not only because we know that fried chicken and cake
are bad for us but also because we know that exposing ourselves to such
temptations throughout the day (and every time we open a cupboard or the
refrigerator) makes it more difficult for us to fight off this and other
temptations throughout the day.
Understanding
depletion also means that (to the extent that we can) we should face the
situations that require self-control—a particularly tedious assignment at work,
for example—early in the day, before we are too depleted. This, of course, is
not easy advice to follow because the commercial forces around us (bars, online
shopping, Facebook, YouTube, online computer games, and so on) thrive on both
temptation and depletion, which is why they are so successful.
Granted,
we cannot avoid being exposed to all threats to our self-control. So is there
any hope for us? Here’s one suggestion: once we realize that it is very hard to
turn away when we face temptation, we can recognize that a better strategy is
to walk away from the draw of desire before we are close enough to be snagged
by it. Accepting this advice might not be easy, but the reality is that it is
much easier to avoid temptation altogether rather than to overcome it when it
sits lingering on the kitchen counter. And if we can’t quite do that, we can
always try to work on our ability to fight temptation—perhaps by counting to a
hundred, singing a song, or making an action plan and sticking to it. Doing any
of these can help us build our arsenal of tricks for overcoming temptation so
that we are better equipped to fight those urges in the future.
Feeling to Need to Give Back and Tricks of Representatives of Medical Companies
Let’s
consider the way representatives for drug companies (pharma reps) run their
business. A pharma rep’s job is to visit doctors and convince them to purchase
medical equipment and drugs to treat everything from A(sthma) to Z(ollinger-Ellison
syndrome). First they may give a doctor a free pen with their logo, or perhaps
a notepad, a mug, or maybe some free drug samples. Those small gifts can subtly
influence physicians to prescribe a drug more often—all because they feel the
need to give back.
But
small gifts and free drug samples are just a few of the many psychological
tricks that pharma reps use as they set out to woo physicians. “They think of
everything,” my friend and colleague (let’s call him MD) told me. He went on to
explain that drug companies, especially smaller ones, train their reps to treat
doctors as if they were gods. And they seem to have a disproportionately large
reserve of attractive reps.
The
whole effort is coordinated with military precision. Every self-respecting rep
has access to a database that tells them exactly what each doctor has
prescribed over the last quarter (both that company’s drugs as well as their
competitors’). The reps also make it their business to know what kind of food
each doctor and their office staff likes, what time of day they are most likely
to see reps, and also which type of rep gets the most face time with the
doctors. If the doctor is noted to spend more time with a certain female rep,
they may adjust that rep’s rotation so that she can spend more time in that
office. If the doctor is a fan of the military, they’ll send him a veteran. The
reps also make it a point to be agreeable with the doctor’s outer circles, so
when the rep arrives they start by handing out candy and other small gifts to
the nurses and the front desk, securing themselves in everyone’s good graces
from the get-go.
One
particularly interesting practice is the “dine-and-dash,” where, in the name of
education, doctors can simply pull up at prespecified take-out restaurants and
pick up whatever they want. Even medical students and trainees are pulled into
some schemes. One particularly creative example of this strategy was the famous
black mug. A black mug with the company’s logo was handed out to doctors and
residents, and the company arranged it such that a doctor could take this mug
to any location of a local coffee chain (which shall go unnamed) and get as
much espresso or cappuccino as he or she wanted. The clamor for this mug was so
great that it became a status symbol among students and trainees. As these
practices became more extravagant, there was also more regulation from
hospitals and the American Medical Association, limiting the use of these
aggressive marketing tactics. Of course, as the regulations become more
stringent, pharma reps continue to search for new and innovative approaches to
influence physicians. And the arms race continues …
**
Hearing stories from the reps who sold medical devices was even more disturbing. We learned that it’s common practice for device reps to peddle their medical devices in the operating room in real time and while a surgery is under way.
Janet and I were surprised at how well the pharmaceutical reps understood classic psychological persuasion strategies and how they employed them in a sophisticated and intuitive manner. Another clever tactic that they told us about involved hiring physicians to give a brief lecture to other doctors about a drug they were trying to promote. Now, the pharma reps really didn’t care about what the audience took from the lecture—what they were actually interested in was the effect that giving the lecture had on the speaker. They found that after giving a short lecture about the benefits of a certain drug, the speaker would begin to believe his own words and soon prescribe accordingly.
Psychological studies show that we quickly and easily start believing whatever comes out of our own mouths, even when the original reason for expressing the opinion is no longer relevant (in the doctors’ case, that they were paid to say it). This is cognitive dissonance at play; doctors reason that if they are telling others about a drug, it must be good—and so their own beliefs change to correspond to their speech, and they start prescribing accordingly.
The reps told us that they employed other tricks too, turning into chameleons—switching various accents, personalities, and political affiliations on and off. They prided themselves on their ability to put doctors at ease. Sometimes a collegial relationship expanded into the territory of social friendship—some reps would go deep-sea fishing or play basketball with the doctors as friends. Such shared experiences allowed the physicians to more happily write prescriptions that benefited their “buddies.” The physicians, of course, did not see that they were compromising their values when they were out fishing or shooting hoops with the drug reps; they were just taking a well-deserved break with a friend with whom they just happened to do business. Of course, in many cases the doctors probably didn’t realize that they were being manipulated—but there is no doubt that they were.”
Complexity of Human Dishonesty

Eight-year-old Jimmy comes home from school with a note from his teacher that says, “Jimmy stole a pencil from the student sitting next to him.” Jimmy’s father is furious. He goes to great lengths to lecture Jimmy and let him know how upset and disappointed he is, and he grounds the boy for two weeks. “And just wait until your mother comes home!” he tells the boy ominously. Finally he concludes, “Anyway, Jimmy, if you needed a pencil, why didn’t you just say something? Why didn’t you simply ask? You know very well that I can bring you dozens of pencils from work.”
If we
smirk at this joke, it’s because we recognize the complexity of human
dishonesty that is inherent to all of us. We realize that a boy stealing a
pencil from a classmate is definitely grounds for punishment, but we are
willing to take many pencils from work without a second thought.
The (Honest) Truth About Dishonesty
**
We
don’t make choices based on our explicit preferences. Instead, we have a gut
feeling about what we want, and we go through a process of mental gymnastics,
applying all kinds of justifications to manipulate the criteria. That way, we
can get what we really want, but at the same time keep up the appearance—to ourselves
and to others—that we are acting in accordance with our rational and
well-reasoned preferences.
**
We’ve
seen that honesty and dishonesty are based on a mixture of two very different
types of motivation. On the one hand, we want to benefit from cheating (this is
the rational economic motivation), while on the other, we want to be able to
view ourselves as wonderful human beings (this is the psychological
motivation). You might think that we can’t achieve both of these objectives at
the same time—that we can’t have our cake and eat it too, so to speak—but the
fudge factor theory we have developed in these pages suggests that our capacity
for flexible reasoning and rationalization allows us to do just that.
Basically, as long as we cheat just a little bit, we can have the cake and eat
(some of) it too. We can reap some of the benefits of dishonesty while maintaining
a positive image of ourselves.
Monday, September 21, 2015
Failing Market
I think that the market for single people is one of the most egregious market failures in Western society.
Saturday, September 19, 2015
Identifiable Victim Effect
But why, at the end of the day, did Baby Jessica garner more CNN coverage than the 1994 genocide in Rwanda, during which 800,000 people—including many babies—were brutally murdered in a hundred days? And why did our hearts go out to the little girl in Texas so much more readily than to the victims of mass killings and starvation in Darfur, Zimbabwe, and Congo? To broaden the question a bit, why do we jump out of our chairs and write checks to help one person, while we often feel no great compulsion to act in the face of other tragedies that are in fact more atrocious and involve many more people?
It’s a complex topic and one that has daunted philosophers, religious thinkers, writers, and social scientists since time immemorial. Many forces contribute to a general apathy toward large tragedies. They include a lack of information as the event is unfolding, racism, and the fact that pain on the other side of the world doesn’t register as readily as, say, our neighbors’. Another big factor, it seems, has to do with the sheer size of the tragedy—a concept expressed by none other than Joseph Stalin when he said, “One man’s death is a tragedy, but a million deaths is a statistic.” Stalin’s polar opposite, Mother Teresa, expressed the same sentiment when she said, “If I look at the mass, I will never act. If I look at one, I will.” If Stalin and Mother Teresa not only agreed (albeit for vastly different reasons) but were also correct on this score, it means that though we may possess incredible sensitivity to the suffering of one individual, we are generally (and disturbingly) apathetic to the suffering of many.
Can it really be that we care less about a tragedy as the number of sufferers increases?
**
This is the essence of what social scientists call “the identifiable victim effect”: once we have a face, a picture, and details about a person, we feel for them, and our actions—and money—follow. However, when the information is not individualized, we simply don’t feel as much empathy and, as a consequence, fail to act.
The identifiable victim effect has not escaped the notice of many charities, including Save the Children, March of Dimes, Children International, the Humane Society, and hundreds of others. They know that the key to our wallets is to arouse our empathy and that examples of individual suffering are one of the best ways to ignite our emotions (individual examples >>emotions >> wallets).
**
We are willing to spend money, time, and effort to help identifiable victims yet fail to act when confronted with statistical victims (say, hundreds of thousands of Rwandans).
**
It is not that you are hard-hearted, it is just that you are human—and when a tragedy is faraway, large, and involves many people, we take it in from a more distant, less emotional, perspective. When we can’t see the small details, suffering is less vivid, less emotional, and we feel less compelled to act.
IF YOU STOP to think about it, millions of people around the world are essentially drowning every day from starvation, war, and disease. And despite the fact that we could achieve a lot at a relatively small cost, thanks to a combination of closeness, vividness, and the drop-in-the-bucket effect, most of us don’t do much to help.
Thomas Schelling, the Nobel laureate in economics, did a good job describing the distinction between an individual life and a statistical life when he wrote:
“Let a 6-year-old girl with brown hair need thousands of dollars for an operation that will prolong her life until Christmas, and the post office will be swamped with nickels and dimes to save her. But let it be reported that without a sales tax the hospital facilities of Massachusetts will deteriorate and cause a barely perceptible increase in preventable deaths—not many will drop a tear or reach for their checkbooks.”
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