DAN ARIELY

Updates

July 1, 2012 BY danariely

We once ran a study on cheating where we asked students to try to recall the Ten Commandments before an exam, and found that this moral reminder deterred them from cheating. Well, a professor at Middle Tennessee State University recently made practical use of the study – but in an extreme way.

 

 

Fed up with the low ethical standards among his MBA students, Professor Michael Tang passed out an honor pledge that not only listed the Ten Commandments, but also included a concluding flourish indicating that those who cheated would “be sorry for the rest of [their] life and go to Hell.” In response, several students called the department chair to complain and a good deal of controversy ensued.

 

But what the news coverage didn’t address (perhaps because no one at the school had) were the merits of this extreme pledge. Might this be an effective way of curbing dishonesty? I think yes, very much so.  I also suspect that even those who don’t believe in God would take this pledge seriously.

 

Still, though I don’t doubt its effectiveness, the question remains whether we want to invoke such stringent punishments (stringent for those who believe, that is) on an MBA exam. Judging from the reactions in this case, I’m guessing that for most people, the answer is “no.” But it also makes me wonder about the people who didn’t want to sign this pledge….

June 29, 2012 BY danariely

After meeting her through a friend from graduate school, the editor of Harper’s Bazaar invited me to give a talk at the magazine headquarters. It was my first experience presenting at a fashion magazine and I suspect it may have been their first experience hosting an academic speaker. They were very gracious and interested (or at least they appeared to be), and they laughed where I hoped they would and asked thoughtful questions.

As a thank-you gift, they gave me a Prada overnight bag. Now, Apple products are the closest I have ever come to owning anything from a highly recognized brand, so acquiring this bit of couture was an interesting experience for me. As I made my way through JFK, I tried to decide whether I should hold the bag so that the triangular Prada logo was visible to other travelers or if I should keep it facing towards me. I quickly decided to keep the logo facing me, and began thinking about the role of brands in people’s lives.

We usually think of brands as signaling something to others. We drive Priuses to show that we are environmentally conscious or wear Nike to show that we’re athletic. In this case I didn’t want to send a signal to the world, but nevertheless I felt different, as if I were signaling something to myself—telling myself something about me and as a result of carrying the Prada bag.

Maybe this is the attraction of branded underwear. They are basically a private consumption experience, but my guess is that if I put on a pair of Ferrari underwear, even if nobody saw them, they would still make me feel differently somehow (Perhaps more masculine? Wealthier? Faster?).

The thing is, I realized I couldn’t just try to make myself feel better by imagining myself wearing Ferrari underwear. I would have to actually wear them in order to feel differently.

So brands communicate in two directions: they help us tell other people something about ourselves, but they also help us form ideas about who we are.

June 28, 2012 BY danariely

Tomorrow, Friday, at 7 PM I will talk about The Honest Truth at the Regulator bookstore in Durham NC.

This is the list of songs that they have created to play in the store for the day.  I am just wondering if these songs will make the people in the store (employees and customers) more dishonest compared to a regular day…..

June 28, 2012 BY danariely

I am pleased to announce that I will be hosting a live book talk on Shindig (http://www.shindigevents.com/) , a new customized video chat space for live events. We will be connected globally via webcam online, and can interact and participate in a live talk about Honesty and Dishonesty. You can socialize with other participants, or watch and listen. The event will be on Monday July 2nd at 6pm EST.

Here’s how it works. About 15 minutes before it starts, go to this link and log in (http://www.shindig.com/event/dan-ariely). You should test your microphone and camera at this time. Then when the event starts we can get going. We will have an interactive talk about irrationality, honesty and dishonesty, followed by a question and answer session.

The only way to make this interesting and fun is to have people in attendance. So please invite as many of your friends as you like to join us! Spread the word on Facebook and Twitter to as many people as you can.

Honestly* yours

Dan Ariely

June 27, 2012 BY danariely

Starting next week, the doctor is in! I’m teaming up with The Wall Street Journal to offer answers to readers’ questions sent to IdeasMarket@wsj.com. Whether it’s about family matters, work conundrums, in-law issues, or where to take your next vacation, I’m happy to have the chance to let you sprawl out on my e-couch and provide some (hopefully useful) advice. And it won’t cost you a dime. Or a nickel.

June 27, 2012 BY danariely

Over the years I’ve written all sorts of blog posts on dishonesty, and because the new book release, I want to repost an updated version of them to accompany. For the next few days I’ll post one every other day. Enjoy!

Janet Schwartz of Tulane University and I once spent an evening with a few former pharmaceutical reps, men who used to be in the business of selling a wide range of drugs to treat all kinds of diseases and conditions, from fibromyalgia to depression to restless leg syndrome. As drug representatives, they would go from doctor to doctor attempting to convince physicians to prescribe their company’s drugs. How? Typically they would start by passing on informative pamphlets and giving out products like pens, clipboards, and notepads advertising their drugs.

But we knew there was more to the story, so we tried the pharmaceutical reps at their own game – we took them to a nice dinner and kept the wine flowing. Once we got them a bit sauced, they were ready to tell all. And what we learned was fairly shocking.

Picture these guys: attractive, charming young men. Not the kind of guys who would have trouble finding a date. One of them told us a story about how he was once trying to persuade a reluctant female physician to attend a seminar about a medication he was promoting. After a bit of persuading, she finally decided to attend – but only after he agreed to escort her to a ballroom dancing class. This, according to our new friends, was a typical kind of quid pro quo where the rep does a personal favor for the doctor and the doctor promotes the rep’s product in return.

Another common practice was to bring meals to the doctor’s office (one of the perks of being a receptionist), and one office even required alternating days of steak or lobster for lunch in exchange for access to the (well-fed) doctors.

Even more shocking was that when the reps were in the physician’s office, they were sometimes called into the examination room (as “experts”) to inform the patients about the drug directly. And the device reps experienced a surprisingly intimate level of involvement in patient care, often selling medical devices in the operating room, while the surgery was going on.

Aside from learning about their profession, we also realized how well these pharmaceutical reps understood classic psychological persuasion strategies, and how they employed them in a sophisticated and intuitive manner. One clever tactic they used was to hire physicians to give a brief lecture to other physicians about a drug. Now, they really didn’t care what the audience took from the lecture, but were actually interested in what the act of giving the lecture did to the speaker himself. They found that after giving a short lecture about the benefits of a drug, the speaker would begin to believe his own words and soon prescribe accordingly. Psychological studies show that people quickly start believing whatever comes out of their own mouths, even when they are paid to say it. This is a clear case of cognitive dissonance at play; doctors reason that if they are touting this drug, they must believe in it themselves — and so their beliefs alter to align with their speech.

The reps employed other tricks like switching on and off various accents, personalities, political affiliations, and basically served as persuasion machines (they may have mentioned the word “chameleon”). They were great at putting doctors at ease, relating to them as similar working people who go deep-sea fishing or play baseball together. They used these shared experiences to develop an understanding that the physicians write prescriptions for their “friends.”  The physicians, of course, did not think that they were compromising their values when they were out shooting the breeze with the drug reps.

I was recently at a conference for the American Medical Association, where I gave a lecture about conflicts of interest.  Interestingly, the lecture just before me was by a representative from a device company that created brain implants.  In his lecture he made the case for selling devices in the operating room because doctors could need help learning how to use the device. And in order to fight conflicts of interest, the company no longer takes physicians to Hawaii for their annual conferences — and instead they have their conference in Wisconsin.

So, what do we do?  First, we must realize that doctors have conflicts of interest.  With this understanding we need to place barriers that prevent this kind of schmoozing, and to keep reps from undue access to physicians or patients. They, of course, have the right to send doctors information, but their interactions should stop there.

I have one more idea: What if we only allow people to be drug reps if they are over 75 and unattractive? Not only would these individuals have more personal experience with the healthcare system, it also could reduce conflicts of interest and open up job opportunities to an undervalued population.

June 26, 2012 BY danariely

I’m excited to announce two upcoming events in August in sunny Palo Alto. One is called StartupOnomics, which is a summit for people involved in start up companies seeking to make the world better, whether it’s through preserving earth, health, youth, or money (August 24-25). This summit will help you, prospective world-savers, understand how people make decisions so that whatever product or service you’re working on can make an impact.

The summit comprises two days of interactive sessions, work sessions, and lectures with experts in behavioral economics (August 24 and 25).  It will be a veritable smorgasbord of events designed to help people think and plan all aspects of their start up.

The other event is an open mic night with me on the evening of August 23. This is separate and open to anyone who reserves a spot. I’ll make a brief presentation and then open the floor for any questions from the audience.

We’ll need your application by July 15th, so hurry! And I look forward to meeting all of you who join us. Reserve your spot for the open mic night as soon as possible!

June 25, 2012 BY danariely

It was gratifying when I recently received some unexpected praise for the new book. If you’re having doubts about whether to read it, maybe this will help you decide…

“I’ve been handing out copies to everyone I know!”

–       Robin Hood

 

“The world is full of small cheaters, but what separates those amateurs from us pros is dedication and effort. Understanding dishonesty has made us not only more efficient, but it also kept us out of jail.”

–       Everyone responsible for the 2008 financial crisis

 

“In The Honest Truth About Dishonesty, Ariely shows that our ability to cheat is based on our ability to make ourselves feel good about lying. As a master of this skill, I can personally attest to his insights and findings. I feel great!”

–       Carlo Pietro Giovanni Guglielmo Tebaldo (“Charles”) Ponzi, (1882 –1949), inventor of the Ponzi scheme

 

“A princely read!”

–       Nicolo Machiavelli

 

“There’s a sucker born every minute, and Ariely teaches us that we’re likely to be one as well.”

–       Phineas Taylor Barnum (“P.T.”) Barnum, businessman, scam artist and entertainer

June 21, 2012 BY danariely

Direct my steps by Your word, and let no iniquity have dominion over me.

 

Redeem me from the oppression of man, that I may keep Your precepts.

Make Your face shine upon Your servant, and teach me Your statutes.

Rivers of water run down from my eyes, because men do no keep Your law.

-Psalm 119: 133-136

 

If you read Predictably Irrational, you may recall that we carried out a study on cheating that assessed the value of moral reminders. In the experiment, we asked participants to complete a test, told them they’d receive cash for every correct answer, and made sure they knew they had ample room to cheat. Now here’s the kicker: prior to starting, we had half the participants list ten books off their high-school reading list, and the other half to recall the Ten Commandments, a manipulation that turned out to have a marked effect on the results: While many in the first group deceitfully reported a higher number of correct answers, no one in the second group cheated.

 

How do we explain the findings? A tempting conclusion to draw would be to equate religiosity with a higher morality; however, this argument doesn’t hold, since in a follow-up study with atheist participants, recalling the Ten Commandments had the exact same effect. Rather, what was at play here was the power of a moral reminder: Prime a person to think about ethics right before they have an opportunity to cheat, and they’ll avoid immoral behavior.

 

This experiment also suggests to me that religion can be a good source of ideas for social science research. If you think about religion as a social mechanism that has evolved over time, then you can ask what purpose(s) its many rules serve and how they can help us to better understand human nature.

 

For example, though religious leaders may not have understood the exact psychology of moral reminders, they’ve certainly had enough of an intuitive sense of their importance to circulate the Ten Commandments and emphasize a whole score of other religious tenets, statutes, and regulations. Whether or not they could cite the causes for it, somewhere along the line they gathered that a good way to keep people in check was to present them with a moral benchmark to keep in mind (e.g. reciting prayers, for instance, before dinner as a continual reminder of the standards).

 

Given religion’s role in society and the way it evolves over time, I think we could benefit from using its wisdom to direct social science research. The key is to zero in on a religious tenet and ask why it’s there and what it suggests about human behavior, and to then empirically test the hypothesis with the hopes of deriving science from religious texts.

 

God bless.

June 20, 2012 BY danariely

The following is taken from the graduation speech of Michael Lewis at Princeton in 2012. In it, he discusses an experiment that explores the relationship between power and morality.

“…… a pair of researchers in the Cal psychology department staged an experiment. They began by grabbing students, as lab rats. Then they broke the students into teams, segregated by sex. Three men, or three women, per team. Then they put these teams of three into a room, and arbitrarily assigned one of the three to act as leader. Then they gave them some complicated moral problem to solve: say what should be done about academic cheating, or how to regulate drinking on campus.

Exactly 30 minutes into the problem-solving the researchers interrupted each group. They entered the room bearing a plate of cookies. Four cookies. The team consisted of three people, but there were these four cookies. Every team member obviously got one cookie, but that left a fourth cookie, just sitting there. It should have been awkward. But it wasn’t. With incredible consistency the person arbitrarily appointed leader of the group grabbed the fourth cookie, and ate it. Not only ate it, but ate it with gusto: lips smacking, mouth open, drool at the corners of their mouths. In the end all that was left of the extra cookie were crumbs on the leader’s shirt.

This leader had performed no special task. He had no special virtue. He’d been chosen at random, 30 minutes earlier. His status was nothing but luck. But it still left him with the sense that the cookie should be his.”

—–

We’ve probably all heard the saying “absolute power corrupts absolutely.” Well, there is a great deal of research concerning the link between social power and morality, and most of it suggests that absolute power is not required to change people’s morals; sadly it tends to show that more power leads to less care for others, and less moral behavior.