DAN ARIELY

Updates

Partisans Don’t Know How the Middle Feels

October 11, 2012 BY danariely

Ten minutes into the Presidential debate, my democratic friends were sure it was a failure. They tweeted, “Nothing he is saying is making me feel anything.”

A lot of Democrats have walked away from Romney’s monologues unaware of how moving Romney’s comments can be. They have felt absolutely secure that an Obama victory is in the bag. They have assumed that because they did have not found Romney’s words exciting, no one else would either.

However, Democrats were never going to feel excited by a Romney-Ryan speech. And if these Democrats gauge Romney-Ryan’s success by their own feelings, they’ll never understand how well the Romney-Ryan is doing with the electorate. Yet, people consistently make this mistake and predict that others’ reactions will be the same as theirs. When people do this, it leads them, their businesses, and their political parties to be overconfident about their lead in the market place

This inability to predict how different people will react can be costly for individuals, political strategists, and businesses. Should an Apple product designer predict the success of a Microsoft product based on how unimpressed she herself is? No. Should a bleeding heart liberal use her own outrage about Romney’s 47% comment as an estimate of how Republicans will react? No. Should a social conservative use his feelings about President Obama’s comment about Americans clinging to God and guns? No.

With the vice-presidential debates happening tonight, I am confident that partisans on both sides will think that the other failed to emotionally connect with the electorate. The truth however is that partisans cannot emotionally connect with each other.

~Troy Campbell~

Part 3: The Amorality of Drunk Driving

August 17, 2012 BY danariely

Over the past week I have blogged about the amorality of drunk driving and critiqued some of the policies attempting to curb drunk driving. Drawing from behavioral economics research and the comments I received, I have drafted 4 ways to combat Drunk Driving. Finally, I included a one-way caveat about why this problem will remain difficult.

#1 Friends need to speak up.  “Friends don’t let friends drive drunk” is a great slogan and I have followed that slogan my entire life. However, most nights I am working late in the Center for Advanced Hindsight. Thus most nights I am not with my peers while they are drinking and potentially driving.  I think a better slogan would be “Friends tell their friends that drunk driving is wrong.”  I find myself always nodding and laughing to others’ stories of drunk driving, when I should be expressing my disapproval. Jonathan Haidt (author of The Righteous Mind) argues that gossip and social disapproval can help regulate morality.

#2 Clean Slate.  One problem with drunk driving is that most people likely to offend have already offended and may have even been arrested. We need a way for people to say, “That was a mistake and I won’t do it again.” I am personally looking into this clean slate idea and hope to provide some clarity in the near future.

#3 Stigmatize.  How to properly calibrate appeals and accomplish this will be difficult but we need to make drunk driving look disgusting rather than sexy (as I think some ad campaigns do). We can call on some of the smoking ads which made smoking seem less attractive and attractive people condemn smoking. Backlash may occur, but a systematic and well-funded experimental research program should discover something nuanced enough to work. This means the government needs to team up with researchers and conduct large-scale experiments. University researchers can come up with theories to guide policy, but policymakers need to calibrate these theories into efficacious policy.

#4 Remove the Fudge Factor.  How many times have you heard people say “I am not drunk, I can drive.” No matter how much you try and convince them they are drunk, they protest. However, if you could show them via a breathalyzer that their blood alcohol content was above the legal limit, then people (even when drunk) might have a harder time justifying getting behind the wheel. Would mandatory breathalyzers at bars reduce drunk driving? It is an empirical question worth answering.

Another possibility is to adopt the Alcohol Anonymous practice of saying, “One drink is one drink too many.” If one could not drink period, then any drinking makes one cross the line. If there was a large public awareness campaign (integrated with alcohol companies’ ads) indicating that designated drivers do not drink one drink, this could potentially be effective.

A Final Caveat.  Some readers used psychological research to claim that threats of punishment might be the only thing that will work. They argued, because people who drive drunk do not think they are endangering others, they do not think they are engaging in any moral violation. Thus if drunk driving is not seen as a moral violation then only the assurance of random checkpoints and breathalyzer tests will curb drunk driving. I think this speaks to my point. All drunk driving policy is shortsighted; it asks what could we do right now to reduce drunk driving. It does not consider the effectiveness of developing national moral standards or engaging in rigorous experimental research (though some does exist). However, as I have argued above, I think we can and need to transform drunk driving into more of a moral issue.

~Troy Campbell~

Part 2: The Amorality of Drunk Driving

August 13, 2012 BY danariely

I want to share with you what appears to me like one of the most ill-advised anti-Drunk Driving campaigns ever created. Ironically, I was walking across the Duke quad on my way to the social psychology building when I passed these ads that so blatantly disregard basic social psychology.

The anti-Drunk Driving ads featured famous celebrities in mug shots and with tag lines such as “Billy Joe supports DUI” (lead singer of Green Day) and “Flo Rida supports DUI” (popular hip hop artist). Most of these were celebrities I personally liked, though there were a few I disliked (such as Paris Hilton).

Quick social psychology quiz! “If a celebrity who you think is the coolest person on the planet is doing something, will telling you about it reduce your likelihood to do it?” No. My immediate response to the Billy Joe ad was to defend my high school hero and downplay the moral wrongness of his drunk driving offense. For some people, these ads might even have made drunk driving seem like a rebellious way to connect with these celebrities.

If you want to reduce illegal alcoholic behavior, then you need to pair the behavior with an outgroup or person one does not want to associated with. This is what I think this campaign may have been trying to go for on some level (e.g. Paris Hilton) but failed to do so. By comparison, Wharton Professor Jonah Berger succeeded at this strategy. Together with his colleagues, he put posters up in undergraduate dorms that associated heavy alcohol consumption with graduate students. Since undergraduates generally wish not to be associated with graduate students, undergraduates’ heavy alcoholic consumption dropped. It is comforting to know that my graduate student outgroup can cause some good in this world.

See you next week for Part 3 of the Amorality of Drunk Driving.

~Troy Campbell~

No Longer Gaga for Gaga?

July 19, 2012 BY danariely

Lady GagaOur very own Troy Campbell presents his research on desensitization via repetition, and (naturally) uses Lady Gaga as his experimental stimuli.

iPhone 5 or Samsung Galaxy S3?

July 5, 2012 BY danariely

Retro iPhoneMy 2-year cell phone contract was up last month, and even before the date when I could opt for an upgrade, I began to experience the pain of indecision: which was it going to be – a Samsung Galaxy S3 or an iPhone 5? I was one of the only Android (HTC Evo) users in our Center for Advanced Hindsight team, and swayed by the rest of the group’s dedication to Apple, I was looking forward to switching to the new iPhone as soon as my contract was up. But I was not going to be able to befriend the newest iOS 6-adorned Siri until the iPhone’s release in a couple of months. In today’s impatient tech age, that is an eternity. My longing for an Apple clashed with my itching desire to get a new phone.

After watching a hopeless number of face-off videos, reading about the features and specs of Galaxy S3 compared with the endless mock ups of the rumored iPhone 5, and even throwing the question around at dinner parties, I decided to come to my senses, listen to what research has to say, and make an irrationally rational decision. Though surely evidence from decades of research is not limited to the following considerations, I picked a number of conceptual tools from decision-making research that could help shed light on this quandary of iPhone vs. Samsung:

  1. Now vs. Later: I should pit my short-term interest in having a new smartphone now against my long-term interest in having an iPhone later. Temporal discounting suggests that we have the tendency to want things now rather than later, and delaying gratification depends on whether we are convinced that what will happen in the future is going to be better than what we can have now. In other words: howmuch better is this nebulous iPhone of the future when I could have this immediately awesome Galaxy S3?  Given that the specs of Galaxy S3 are available but those of the iPhone 5 are not, it might be smart to bet for what is certain. (Winner: Galaxy S3)
  2. Misremembering the past vs. mispredicting the future: I can go with the certain specs of Galaxy S3, or potentially recall my past experiences with iPhones and decide accordingly. Sadly we are bad at remembering past feelings; rather than correctly weighing the positives and negatives we remember the peak moments and selected experiences. Since I am unable to accurately recall my past emotional states, then maybe I can imagine how much pleasure each of these phones could bring me in the future? Unfortunately, we are also notoriously bad at predicting the duration and intensity of future feelings. (Winner: Galaxy S3)
  3. Want vs. need: Do I want a new phone? Yes. Do I really need a new phone? No, because my old one is still in good shape. With the irresistible discounts of signing up for a new 2-year plan, I am conditioned by the cell phone market to switch to a new phone as soon as possible. This conditioning moves me from casually wanting a new device to absolutely needing it to survive (!). I feel that the longer I wait, the more I am giving up on a perceived opportunity. (Winner: wait until my current phone gives up, and then get an iPhone 5).
  4. Decoy options iPhone 4s vs. HTC Evo: In my indecision, I can introduce a third option that is asymmetrically dominated either by Galaxy S3 or iPhone 5. If I consider iPhone 4S as a potential option, it would (hopefully) be dominated by iPhone 5 but could still be superior to the Galaxy S3 with the ease of its use, compactness and such. If I am leaning more towards the Android options, then I can consider staying with HTC Evo as a potential third choice, and given that Galaxy S3 surpasses my old Android in nearly every domain, I would lean towards upgrading to Samsung. (Winner: Depends on the decoy option)
  5. Reactance to unavailability: The brands also complicate the issue as they control supply and increase demand by playing with the availability of their products as well as the timing of their release. This can create several types of responses:
  • Since iPhone 5 is currently unavailable, I experience a pressure to select iPhone 4S which is a similar alternative. If I perceive this as a limitation on my freedom to choose, I might react by selecting a dissimilar option. (Winner: Galaxy S3)
  • The unavailability of iPhone 5 could also lead me to perceive it as more desirable. (Winner: iPhone 5)
  • Or I can just despise what I can’t have. (Winner of the sour grapes story: Galaxy S3)

So, what should I do? Given the considerations above, there is still no clear winner for me. Yes, I have the plague of newism: I run after the genuine, exciting proposition of the emerging trends and products. Yes, I know there is something good now, but possibly something better around the corner.

At the end of the day, I will toss a coin: not because it will settle the question for me, but because in that brief moment when the coin is in the air, I will suddenly know which side I hope to see when it lands in my palm. And besides, whether I purchase my new phone from Apple or from Samsung, I will stick to my commitment, almost immediately forget about the forsaken option, and justify my choice infallibly in retrospect.

~Lalin Anik~

Can I Buy You a Cup of Coffee?

February 24, 2012 BY danariely

At a coffee shop in Bluffton, South Carolina, people have been spontaneously paying forCoffeefuture customers’ drinks on a fairly consistent basis. Sometimes, those who are not even looking to buy coffee for themselves will come in and donate money for future (anonymous) customers.

While certainly unique, this may not be too surprising when viewed under the lens of behavioral economics — and could suggest an interesting business model. Let’s consider a hypothetical coffee shop that chooses to employ a strictly “pay-what-you-want-for-other-customers” pricing strategy, in which customers can only leave money to be used by other customers, and are allowed to leave as much (or as little) as they would like. In turn, their drinks are paid for by previous donations.

First, there are a number of examples in the scientific literature (and in the real-world) of the benefits of pay-what-you-want pricing systems. Allowing people to pay the price they want can sometimes result in people paying more money than they would if a standard price was requested for any particular product or service.

Second, recent research by Elizabeth Dunn, Lara Aknin, and Mike Norton shows that spending money on others can have a more positive impact on one’s happiness than spending money on oneself. So this may mean return visits by customers who wish to get that extra boost in happiness that they do not get from places where they buy their own selected product(s).

Third, Dan Ariely has studied how powerful the idea of “free” can be; in short, people love free things. Receiving a “free” drink in our hypothetical coffee shop (paid for by another customer) should be more desirable than directly paying for the drink.

At this hypothetical coffee shop with a “pay-what-you-want-for-other-customers” pricing strategy, customers may have an experience in which they get to enjoy a “free” product (good for that customer), get a boost of happiness from buying something for others (good for that customer…and the customer(s) who get to spend that money), and may wind up spending more money overall than they would have under a traditional pricing scheme (good for the coffee shop). Thus, allowing people to pay what they want for other customers may potentially lead to a lot of good all around.

There are certainly many risks that come along with a “pay-what-you-want-for-other-customers” pricing system. But if the events of the coffee shop in South Carolina are any indication, such a pricing strategy may just be irrational enough to work.

~Jared Wolfe~

Easing the Pain This Holiday Season

December 1, 2011 BY danariely

Credit card donations to the Salvation ArmyThe image (and jingle) of the bells of Salvation Army volunteers is almost as synonymous with the holiday season as Santa Claus himself. However, the New York Times reported last month that a change may be coming to a street corner near you; the charity has begun testing the use of a digital donation system called Square that would allow passersby to donate via credit card, rather than have to worry about scrambling for loose change.

The article mentions two potential benefits of this kind of system. First, people are less likely to carry cash on them as they were in the past, and so Square’s credit card system provides people with a quick, simple, and convenient way to donate when they don’t have any real money handy (and with 1 in 7 Americans carrying at least 10 credit cards, this shouldn’t be a problem). Second, a credit card system would be safer because donations would not be vulnerable to theft like money in the kettle has always been.

Still, this credit card system may unintentionally have another significant benefit: it may lead people to want to donate more money than they would otherwise. There is a concept in behavioral economics known as the “pain of paying.” Simply put, it hurts us to spend (and part with) our money. And since buying things with a credit card is a less direct, less tangible way to part with money than using cash, it can feel less painful, and therefore lead people to spend more.

Assuming that this effect generalizes from buying products to donating to charities, Square’s credit card system may actually lead to larger total donations for the Salvation Army, whether it is because more people decide to donate, or because more money is donated by each individual. (Not to mention the possibility that people may feel silly choosing “loose change”-style amounts (e.g., 35 cents) to donate via credit card, and so may round up to the whole dollar for that reason alone).

So Square’s credit card system may, through behavioral economics, lead people to be more generous with their donations to the Salvation Army. If the Salvation Army uses this new system and winds up faring well, perhaps other charities should take note and consider implementing such a system as well.

Have a happy holiday season, everyone! And remember that doing the most good may be just a swipe away.

~Jared Wolfe~

Big City, Small Robot

August 4, 2011 BY danariely

TweenbotSeveral years ago, I began to make human-dependent cardboard robots and place them on the streets of New York City. These little robots, which came to be known as Tweenbots (a combination of the words “between” and “robot”), roll at a constant speed, in a straight line, and have a flag that says that they are trying to get to a certain destination (e.g., the southwest corner of Washington Square Park). The flag asks for people to aim the Tweenbot in the right direction to reach its goal.

New York City is a large and bustling place – and if one ascribes to the stereotypes about New Yorkers’ helpfulness, the outlook did not appear promising for these little cardboard robots.

On the other hand, the Tweenbots are irresistibly cute. They have a cheerful posture and move along at a bumbling pace. As you look down at them, the first thing you see is an iconic smiley face made of two large circles for eyes and a line for a mouth.

Scott McCloud, who writes about the theory of cartoons in his book Understanding Comics, explains the deeply embedded mental processes that compel us to interpret everything in our own image; we can’t help but transform two dots and a line into a face. For McCloud, the less realistic –the more abstract and iconic– a character’s features, the more easily we fill in the details based on our own perspective and imagination, “assigning identities and emotions where none exist.” We project ourselves onto characters so that we not only identify with them, we inhabit and become them.

Over the course of a few months, as I observed people interacting with the Tweenbots, I came to realize just how powerful their anthropomorphic and emotive qualities were. At first, I started to perceive this through people’s use of simple gestures that are commonplace in our everyday social interactions; when a pedestrian looked down at a Tweenbot’s smiling face, they couldn’t resist smiling back. This automatic mimicry is a sort of emotional contagion, and goes beyond unconsciously mirroring another’s expression – it also implies that you can “catch” or feel the emotions of another. I saw this automatic response over and over again, and hoped that by smiling in response to the Tweenbots, people were actually feeling happier. I also came to recognize that people were experiencing deeper emotional connections when, moments after they characterized the Tweenbot as happy and non-threatening, they seemed to consider the Tweenbot’s presence in the context of the big city and respond empathetically to their plight.

Empathy is being able to walk a mile in someone’s shoes, to vicariously experience and understand what another is going through. As I watched some people bend down and gently orient the Tweenbot in the right direction, it occurred to me that the Tweenbots were inviting people to extend beyond themselves to experience the city from the perspective of a tiny and tragically cheerful cardboard robot. With their improbable presence on city streets, Tweenbots are the quintessence of vulnerability, of being lost, and of having intention without the means of achieving their goal alone. We all know –or can imagine– what it feels like to be lost or helpless in the face if the city’s massive network of streets, subways and crowds. But this overwhelming milieu may also be the reason that we ignore others who may need help as we go about our daily routines. The unexpected appearance of the Tweenbot, along with their disarming appearance, disrupted the self-focused navigation of the city, inviting people to stop and interact. New York brought the Tweenbots to life when people projected their own feelings onto the simple forms of the Tweenbots, and in a small way for just an instant, they perhaps saw themselves looking up from the sidewalk as a helpless cardboard form.

It seemed entirely possible that this empathetic connection was what motivated so many people to help the Tweenbots. Every time a Tweenbot got stuck in a pothole or started to grind futilely against a curb, someone would come to its rescue. Strangers, who seconds before would have no reason to talk to one another, came together to help. People talked to the Tweenbots, and asked for directions on the Tweenbot’s behalf when they did not know which direction to aim it. Of all the amazing interactions, my favorite was when one man turned a Tweenbot back in the direction it had just come, saying out loud to it “you can’t go that way, it’s toward the road.”

~Kacie Kinzer~

To learn more about the Tweenbots, you can check out the website here.

Tweenbots from kacie kinzer on Vimeo.

Help Me Today, I'll Help You Tomorrow

June 24, 2011 BY danariely

Empty walletIn the course of our lives, we come across countless opportunities to help others. The occasional homeless person or charity asks for a donation, or the Red Cross is collecting blood across the street. But most of the time, these opportunities present themselves through our social networks — simply because we interact most often with our friends. One important difference between helping friends and helping strangers is that we know our friends can pay us back in the future, whereas strangers can usually only pay it forward. Of course, all people are not able to help others to the same degree; some people have a lot to spare while others get by on a tighter budget.

My friend Sevgi and I wondered whether people are more generous when others have the opportunity to help them back in the future, and whether people reciprocate based on the value of the gift they received. Our main questions were:

1)    Do people give more when they know they may get something in return?

2)    Do receivers care whether their gift is more valuable in an absolute or relative sense?

To look at these questions, we had people play a simple game as one of two players: lets call them player A and player B. We give $1 to player A and $100 to player B (they both see how much the other gets). Player A can send any amount (of his $1) to player B, and then player B decides how much (of his $100) to send back. In another version of the game, player B cannot give anything back.

Does player A send more money to player B when he knows that B can send money back? How much money does player B send back when player A sends nothing, some of his money, or even his entire dollar?

Looking at the results, we see that people are a) strategic when they offer money initially and b) reciprocating after they have been given money. On average, player A sends more to player B if he knows that B can send something back. And the more that player A sends to player B, the more he receives.

However, the amount sent back by player B does not depend on the absolute value of player A’s initial offer, but on the proportion of player A’s wealth that was offered. What does this mean? If player A has $50 instead of $1 and sends half of it to B ($25), he gets back almost the same amount of money from B as he gets after sending half of $1 (50 cents!).

So, what is the lesson du jour? It turns out that people with limited resources can gain just as much from acting altrustically as those who are well-endowed. Don’t get discouraged by a thin wallet when given the chance to help others — after all, it is your generosity that counts.

~Merve Akbas~

Do Libraries Give Us the Freedom to Steal?

June 10, 2011 BY danariely

CDsI am interested in the morally ambiguous realm of music/video/book piracy, a place where everyone has something to say and no qualms about saying it. A couple weeks ago, over a chocolate croissant, I was having what was probably my 5,637th conversation on this topic, and my new friend (for his own protection let’s just call him Steve — apologies to all the Steves out there) began voicing his opinions: he was vehemently against illegal downloading, but fine with checking CDs out from the library and making personal copies for himself.

The conversation went as follows:

Me: “You know that’s illegal?”

Steve: “It’s a gray area.”

Me: “According to the law, it is not.”

Steve: “I still think it is kind of gray. And I need to put the songs on my iPod to listen to them, so I have to copy them anyway.”

After this conversation I was left wondering whether Steve was a criminal anomaly or if the rest of America was on his side. So I divided a sample of Americans into two groups and had them rate the moral “wrongness” of the two types of piracy. Group A) was told that Steve downloaded an album online without paying and Group B) was told that Steve checked out the CD from the library and made a personal copy.

The Conclusion:  America agrees with Steve. People generally viewed Steve’s actions as significantly less morally adverse when he made a copy from the library.  From a legal perspective, Steve had committed an equally unlawful act, but Americans still viewed the crimes differently.

So how could (illegally) copying from the library be viewed as less wrong than (illegally) downloading?

Illegal downloading has a sting against it while copying does not. Copying does not feel as much like stealing. There’s also a fellow person or institution (like a library or generous friend) to share your sin with. Pirates are a tainted outgroup, but anyone can be a copier of media.

Libraries make it okay. It can be safely assumed that libraries know that we have the ability to copy CDs but make no efforts to stop us; by providing us with the opportunity, they are more or less condoning piracy.

It’s so easy to copy CDs.  For this study our sample consisted mostly of people who do not know how to illegally download online (e.g., they were not particularly aware of cyber lockers or torrent clients). In other words, they probably know how to copy and burn a CD but not illegally download music.  I believe that most of the moral qualms people have against piracy would be wiped away if they just learned a virus-free, super-easy way to pirate high quality media.

I think the “easy” factor is partially why people view streaming illegal content (watching the content within browser without downloading it) as different from illegally downloading. Many illegal streamers say they are okay with streaming but not downloading because streaming is just “borrowing.” I think that, in actuality, people choose not to download because they do not know how, they find downloading to be a hassle, or are scared of viruses rather than because of their high moral standards. To avoid looking incompetent, they say (and believe) that the reason they don’t illegally download is because that type of piracy is morally wrong. But the kind they can do and easily benefit from (like copying from library CDs) is okay.

If you would like to help us out and provide any strong (or morally gray) opinions, please share them with us

~Troy Campbell~