DAN ARIELY

Updates

Ask Ariely: On Craving Companions, Finding Fairness, and Delaying Decisions

September 7, 2019 BY Dan Ariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Hi, Dan.

I started college a couple of weeks ago, and I find myself very preoccupied about whether the people I’m meeting like me. Do you have any advice about how I can relax around people?

—Bronwyn 

You will be relieved to know that most of us tend to underestimate how much people enjoy our company. In 2018, Erica J. Boothby and colleagues published a paper about the “liking gap”—the difference between how much we think other people like us and how much they actually like us. In one of their studies, they asked first-year college students to rate how much they liked a given roommate and how much they believed their roommates liked them, starting in September and continuing throughout the school year.

They found that participants systematically underestimated how much they were liked. In fact, it wasn’t until May, after living together for eight months, that people accurately perceived how much they were liked. So try to focus your social energy on spending quality time with friends and don’t worry too much about the outcome.

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Dear Dan,

I work for a nonprofit organization that offers mindfulness retreats for teens. Our tuition model is that we request 1% of a family’s income, up to $2,000, for a week-long retreat. We feel that this model is fair, but some higher-income families object to paying more than others for the same service. Why do they feel this way, when the cost is such a small share of their income?

—Tom 

Our perception of what is fair depends to a large degree on what we’re being asked to give up to achieve a fair outcome. In your arrangement, people with more money are being asked to pay more, so they are likely to see a fixed price for tuition as being more fair than a sliding scale—and vice versa for families with less money.

One way to try to overcome this bias is what the political philosopher John Rawls called the “veil of ignorance.” In this approach, people are asked to design an imaginary society they will have to live in, without knowing whether they are going to be rich or poor. This means that they have to decide what is fair before they know how much they will personally stand to gain or lose from any given arrangement—for instance, the tax rate. Maybe you can try an exercise of this sort related to tuition as part of your mindfulness teaching.

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Hi, Dan.

I have an aging but perfectly fine car and waste a lot of time pining for something more modern and comfortable. But I haven’t found a new model I love, and with technological improvements happening so fast, cars are getting better every year. Should I wait for the perfect car to come along or should I compromise and buy something now?

—Alex 

My sense is that if you don’t like any of the available options, it means you’re not yet ready to make a change. Happiness isn’t just about what we have and don’t have; it’s also about not constantly looking for something better. Why don’t you decide that you won’t look at new cars for a certain period—say, two years—and then give yourself a three-month window to research a purchase. At the end of that time, you will pick the best option available. This way, you won’t waste time and energy on an open-ended search.

See the original article in the Wall Street Journal.

Ask Ariely: On Balancing Birthdays, Valuing Vacations, and Finding Fulfillment

August 24, 2019 BY Dan Ariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Dear Dan,

I am a widow, and my friendships are very important to me. But many of my friends are couples, and each year I end up buying birthday gifts for both the husband and the wife, plus an anniversary gift. While I always get a nice present in exchange on my birthday, the balance of gift-giving seems unfair. Is there a more evenhanded way to exchange gifts?

—Carol 

It’s very hard to shift social norms about gift-giving, especially when a pattern is well established. The best approach might be to try to replace the current norm with a new one. For example, what if you told your friends that you are concerned about the environment and want to try to reduce your level of consumption and waste, so you are planning to start giving cards instead of gifts. Ask them to help you with this commitment by giving you cards in exchange. This way, you would be appealing to a moral principle, rather than telling the that all you are trying to do is to save SOME money.

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Dear Dan,

I’m planning a vacation, and I’m considering a prepaid, all-inclusive resort, so that I won’t have to worry about the cost of every drink and sandwich. But I’m concerned that the all-inclusive package won’t be as good an experience as some of the other, pay-as-you-go options that I’m looking at. Is prepaying always the best choice?

—Saurabh 

You’re certainly right that an all-inclusive resort isn’t always the highest-quality option. But you have to remember that what’s most important is whether you’re going to enjoy the experience you have. Constantly having to make decisions about what to buy can detract from your vacation experience, even if the hotels or restaurants you end up patronizing are of better quality.

In general, when you make a decision, it’s better not to ask “Am I choosing the absolute best option?” Instead, you should consider your enjoyment of the experience as a whole, including your ability to relax and your peace of mind.

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Dear Dan,

I grew up in a working-class household, and I’ve been upwardly mobile in my career, but I’ve recently begun to feel that my job is meaningless. Should I think about my work merely as a way to make money to survive? Or would it be better for me to look for a job that I can take pride in as part of my identity?

—Ella 

The research is very clear that finding meaning in your job is necessary for happiness. At the same time, if too much of your identity is tied up in your job, it can make you more vulnerable to work-related stress. A study conducted in 1995 by Michael R. Frone, Marcia Russell and M. Lynne Cooper found that people who strongly connected their identities with their jobs were much more sensitive to work stressors than those who thought about their work in a more casual and detached way.

Ideally, you should look for work that gives you a sense of pride and meaning, but you should also remember that a job doesn’t define you, and that there are other, equally important parts of your identity.

See the original article in the Wall Street Journal.

Amazing Decisions!

August 14, 2019 BY Dan Ariely

Hello all,

I’m excited to share with you my new graphic novel with illustrator Matt R. Trower, Amazing Decisions: The Illustrated Guide to Improving Business Deals and Family Meals. This book will help you understand how to navigate the complex and curious interaction between social norms and market norms… and make better decisions for it!

Please watch this video to understand more, and find the book here on Amazon or in your local bookstore!

Ask Ariely: On Overwhelming Options, Frustrating Fees, and Valuable Vocations

August 10, 2019 BY Dan Ariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Dear Dan,

Does the fact that so many Democrats are running for President in 2020 make it more difficult for voters to choose among them? I’m especially interested in politics, and even I find it hard to compare each candidate’s positions. I wonder if many Democratic voters will simply give up on paying attention to the primaries.

—Tracy 

In behavioral science, we call this phenomenon “the paradox of choice.” While many people report that they like having more choices, having too many choices can end up making it impossible to make a decision at all. For example, when people are given a lot of flavors of jam to choose from, they tend to sample more flavors, but they are less likely to actually buy one of them. In the case of the Democratic primaries, the number of candidates is certainly overwhelming, and I think it is likely to decrease voter turnout.

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Dear Dan,

During a recent doctor visit, I was asked to sign an agreement saying that if I missed a future appointment I would have to pay a $50 fee. I thought this was excessive and refused to sign. Does this kind of policy really get more people to show up for medical appointments?

—George 

Negative incentives—in other words, punishments—are more complex than they seem and can backfire. One of my favorite studies on this topic is by the economists Uri Gneezy and Aldo Rustichini, who showed that when a day-care instituted a fine for late drop-offs, parents became even less likely to arrive on time. Instead of viewing the fine as a punishment, parents saw it as a way to pay for the right to be late, and they took advantage of this service without guilt.

In your case, I would expect to see a similar result: Patients might feel more entitled to miss appointments if they know they can pay a fee for it. In addition, the system will probably make patients even more furious when doctors are inevitably late, since it implies that the doctors think their own time is more valuable than that of their patients.

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Dear Dan,

Do people’s salaries tend to accurately reflect the value they contribute to society? Can we assume that if someone makes a lot of money, they are adding significantly more value than someone who makes only a little?

—Richard 

On the contrary, there are many people who create a lot of value and don’t get paid much, as well as many who create very little value and get paid well. One of the best examples of this mismatch is teachers. A paper by Raj Chetty and colleagues in the American Economic Review estimated how much of an impact teachers have on the future of the students in their classes.

They found that students with strong teachers are more likely to attend college, have higher lifetime salaries and are less likely to become pregnant as teenagers. They estimated that replacing a teacher in the bottom 5% with an average teacher would increase their students’ lifetime income by $250,000 per classroom. Yet obviously, teachers don’t make anywhere close to that figure. Maybe one day we will evolve as a society and base people’s salaries on their actual contribution to the common good.

See the original article in the Wall Street Journal.

Ask Ariely: On Staying Safe, Cultivating Confidence, and Deciding Deadlines

July 27, 2019 BY Dan Ariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Dear Dan,

India has one of the highest rates of road-accident mortality in the world. Our Supreme Court in India mandated the use of helmets when riding a motorcycle or scooter, yet many people don’t obey the law. Why is it that people don’t wear helmets? Do they just not understand the risk?

—VN 

The problem is that while we know riding a motorcycle without a helmet is risky, our experience can provide us with a false sense of safety. If you decide to ride without a helmet once, the odds are that nothing bad will happen to you, since the probability of getting into an accident on any given ride is low. As a result, your bad behavior is reinforced, and you do it again and again until, eventually, your luck runs out. This is a good example of why it’s a bad idea to rely on intuition about what is safe, instead of trusting the actual data.

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Dear Dan,

I was attacked by a dog when I was 7, and it left me with serious injuries and scars. Now that I’m an adult, I realize that my appearance is holding me back from pursuing things I enjoy. What can I do to overcome this problem?

—Joe 

As someone who was badly injured in a fire as a teenager, I have to admit that my own concern with the way I look is still with me—particularly when people shake my injured hand.

But there are two rays of light. The first is something called the spotlight effect, which says that all of us pay a lot more attention to ourselves than other people pay to us. This was elegantly demonstrated in a study in 2000 by Thomas Gilovich and colleagues, who asked some Cornell students to walk into a fraternity party wearing embarrassing Barry Manilow T-shirts. After the party, the researchers asked them how many people noticed their shirts and what the social implications were. The participants believed that everybody noticed and that it hurt their social reputations. When the researchers asked everyone else at the party, it turned out almost nobody noticed the shirts.

The second hopeful fact is that with time and practice, your sensitivity to your appearance will go down, even if it’s never completely eliminated. I hope that this problem won’t prevent you from going out into the world and making the most of your limited time on earth.

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Hi, Dan.

I work in human resources, and I’m trying to motivate our employees to complete a short online training program. The training is very simple, but no one seems to get it done. Should I give them a deadline of a month to finish it, or will that just cause more delay?

—Archie 

Deadlines are very important—when we have lots of demands on our time we need deadlines to help us set priorities. However, people also use deadlines as a source of information about the complexity of the task. In a paper published earlier this year in the Journal of Consumer Research, Meng Zhu and colleagues found that giving people longer deadlines led them to believe that the task was much harder, which in turn increased how much they procrastinated. So for an easy task like completing an online training program, set a short-term deadline, so that people will think the task is easy to accomplish and get right to it.

See the original article in the Wall Street Journal here.

Behavioral Economists Needed for Postdoc

April 2, 2018 BY danariely
Announcing: Postdoctoral positions in Consumer Behavior and Behavioral Economics at the Department of Management 966650

The Department of Management at Aarhus BSS, Aarhus University, invites applications for 2-year postdoctoral positions offering applicants an exciting opportunity to join a new research project focused on decision making, consumer behavior, behavioral economics, and social influence.

The starting date is September 1st, 2018 or subject to mutual agreement.

The research project

The post will suit candidates with relevant experience in experimental design and an interest in conducting experiments that have direct application to policy. The project contributes to the fields of marketing, behavioral economics, and psychology and will employ both theoretical and empirical tools. The project is expected to generate high-quality research and top-tier publications with societal and scientific implications.

Job description

Candidates are expected to contribute to the overall objectives of the project by being involved in experimental designs, data collection, data analyses, development of theoretical models, and writing of academic articles. They may also contribute by writing grant proposals.

The project will be under the supervision of Tobias Otterbring (Aarhus University & Karlstad University), Panos Mitkidis (Aarhus University & Duke University), and Dan Ariely (Duke University & Aarhus University).

The position is research-oriented but may involve teaching and/or supervision assignments.

Qualifications 
Candidates must hold a PhD relevant to the academic areas of the Department of Management, preferably within one or more of the following areas: Social or Consumer Psychology, Marketing, Behavioral Economics, or another relevant field.
Other requirements include:
•    Publication experience in high-ranking journals in psychology and/or marketing
•    Experience with designing, analyzing, and reporting experimental or survey research
•    Experience with field studies, consumer panel surveys, lab experiments, and the combination of these (multi-methods studies)
•    Knowledge and expertise in one or many of the following areas: marketing, consumer behavior, social psychology, behavioral economics, and judgment and decision making
•    Excellent research skills, including advanced statistical and methodological knowledge (e.g.,  experience with eye tracking, programming of experiments, statistical methods such as individual models of preferences or models of decision-making processes, and programming skills in R or Python)
•    Experience in course teaching
•    Excellent command of written and spoken English, with a certified proficiency in English
•    Excellent knowledge of office and statistical software
•    Motivation to work independently as well as cooperatively in an international team

Who we are
The Department of Management is one of the six departments at Aarhus BSS, one of the four faculties at Aarhus University. Aarhus BSS unites the research fields of business and social sciences bringing them closer together to reflect  the  close  relationship  between  society  and  the  business  community.  As part of a Top 100 university, Aarhus BSS has achieved the distinguished AASCB, AMBA and EQUIS accreditations.

The department’s research and teaching environment is highly international and culturally diverse with a mix of  Danish and international academic staff members and PhD students. We employ more than 160 academic staff including researchers, PhD students, research associates and cover a broad range of disciplines within     management, e.g. marketing, corporate communication, international business, organization, HR, strategy, management accounting, innovation management, entrepreneurship, project management, and information systems. We aim to conduct high-quality research, and we give high priority to publishing our research in leading academic journals and presenting it at recognised conferences. In addition, we have a dynamic exchange of international researchers, who stay at the department for short or long periods of time.

For more information about the Department of Management, please visit: http://mgmt.au.dk/.

International applicant?
Aarhus University offers a broad variety of services for international researchers and accompanying families, including relocation service and career counselling to expat partners. Please find more information about entering and working in Denmark.

Further information
For further information about the position and the department, please contact Head of Department Jacob Kjær Eskildsen, Tel.: +45 3160 8100, Email: eskildsen@mgmt.au.dk

If you need help uploading your application or have any questions about the recruitment process, please contact HR supporter Frederik Sørensen, Tel.: +45 87153445 , Email: fso@au.dk.

Place of work
Aarhus BSS
Department of Management
Fuglesangs Allé 4
DK-8210 Aarhus V
Denmark

Terms of employment
The appointment is in accordance with the Memorandum on Job Structure for Academic Staff at Danish Universities as well as the circular on the Collective Agreement for Academics Employed by the State.

The job content and qualification requirements are described in further detail in Circular on Terms of Employment for Academic Staff at Universities.

Application procedure
It is obligatory to attach the following when you apply for this position:

• Application
• Curriculum Vitae. You are encouraged to declare any periods of leave without research activity, including, for example, maternity leave, since your research activities are assessed in relation to your actual research time
• Education (diploma for master’s, PhD and possibly higher doctoral degree)
• List of publications (the enclosed publications must be clearly marked on the list of publications)
• Publications. Up to three publications can be included in the application. In the event of several authors the publications must be accompanied by a co-author statement concerning the applicant’s share of the collaborative work with the consent of the co-authors. This form can be used for the purpose
• Teaching portfolio. The specific requirements regarding the documentation can be found here

Materials which cannot be uploaded together with the application may be submitted in three copies to Aarhus BSS HR & PhD, Aarhus University, Tåsingegade 1, 2nd floor, DK-8000 Aarhus C.

Read more about how to apply for an academic post at Aarhus BSS here.

The evaluation process
After the application deadline, an assessment committee is appointed. Please note that the assessment of applicants is based solely on the material received prior to the application deadline. For further information, see Guidelines for Assessment Committee, Aarhus BSS.

All interested candidates are encouraged to apply regardless of personal background.

Deadline
All applications must be made online and received by:

14.05.2018
Apply online here

Hiking the Israel National Trail

March 28, 2017 BY danariely

I’m just starting the second week of my month-long hike, and have been tracking some things along the way:

  • Light Happiness
  • Deep Happiness
  • Love
  • Optimism
  • Regret
  • Empathy
  • Loving Nature
  • Work Separation Anxiety
  • Communication Anxiety

So far, I appear to be pretty stable on most dimensions (light happiness has taken a few dips but deep happiness is consistently high, and love/optimism/loving nature have remained high), but I’m most noticeably experiencing a downward trend on work separation anxiety. The more time I spend hiking, the less I am worrying about the growing list of tasks that would otherwise keep me up at night. It took a few days for me to get here, but my work is now taking a back seat to the importance of this trip.

I decided to embark on this adventure as an acknowledgement of my upcoming 50th birthday, and as an opportunity to reflect on life and how I want to spend the rest of it.

You can follow my journey at http://danarielyishikingtheint.com and see how the next few weeks pan out!

Irrationally Yours,

Dan Ariely

 

Ask Ariely: On Dramatic Defaults, Traveler Tips, and Restaurant Risks

February 18, 2017 BY Dan Ariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Dear Dan,

I know that people are more likely to make smart decisions—about, say, contributing early and often to a retirement savings fund—if they’re nudged into it by default settings. How powerful is this effect? Do defaults push people a bit or change their choices dramatically?

—Tom 

You’ve put your finger on one of the key findings of behavioral economics. Shlomo Benartzi and Richard Thaler, among others, produced probably the field’s greatest success by encouraging employers to create retirement benefits packages whose default options are set for savings. Such packages used to require employees to enroll if they wanted to start saving. By switching the default, so that employees were automatically enrolled and had to act if they wanted to stop putting aside money, saving rates increased dramatically.

But what effect does changing the default setting have compared with other incentives to save? Take a recent study by Michael Callen, Joshua Blumenstock and Tarek Ghani. They worked with Roshan, a mobile communications provider in Afghanistan, to create a savings plan for its 1,000-person workforce. Half the participants were given a default of “opt in” (and had to call to leave the plan), and the other half was defaulted to “opt out” (and had to call to start saving).

The researchers wondered how much changing the company’s matching level and the employees’ default settings would increase savings. They found that automatic enrollment had about the same effect on participation as providing the pricey incentive of a 50% matching contribution from the firm. Default settings, they concluded, are powerful indeed—perhaps not enough to make businesses stop matching contributions for their workers, but more than enough to make them sweat the default details.

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Dear Dan,

On vacation in Mexico, I saw a hardworking server waiting on guests at a resort—who didn’t leave a tip. I can’t imagine they would have behaved this way in our native Canada. Did the fact that they had purchased an “all-inclusive” vacation have anything to do with it?

—Kevin 

Several forces were probably at work. First, some all-inclusive vacations aren’t clear about tips, which may incline us to think gratuities are covered. Second, remember the saying: “What happens in Vegas stays in Vegas.” When we travel, we become slightly different versions of ourselves—and can act more freely without tainting our own reputations, at least in our own eyes. Finally, immorality often stems from our ability to convince ourselves that we’re doing something OK—even if we know that we’d want people to behave better if we were on the receiving end.

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Dear Dan,

I’m often flummoxed by long restaurant menus, so I’ll pick a familiar dish—and feel that I haven’t gotten the most out of my dining experience. Any dining advice?

—Tom 

Trying new things makes life more interesting, but the fear of making mistakes can drive us to play it safe. Restaurants are great places for a risk. The most you can lose is one meal, and you can always ask for something else if you hate your adventurous dish (just tip well). So I often ask the waiter for the most unusual dish on the menu.

See the original article in the Wall Street Journal here.

Ask Ariely: On Tipping Out, Question Quality, and Stockholm Syndrome

January 7, 2017 BY danariely

Here’s my Q&A column from the WSJ this week  and if you have any questions for me, you can tweet them to @danariely with the hashtag #askariely, post a comment on my Ask Ariely Facebook page, or email them to AskAriely@wsj.com.

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Dear Dan,

Some restaurants have made news recently by eliminating tipping. But will the long-term effect be worse service?

—Phil 

I wouldn’t expect a decrease in the quality of service. I’m not sure that tipping is a particularly motivating reward to begin with. For one thing, tips in many restaurants are often pooled among employees. That means that the gratuities are averaged across workers, so individual waiters won’t immediately or strongly experience the benefits (or punishments) that stem from superb or lousy service. Furthermore, statistical modeling by Ofer Azar of Ben-Gurion University of the Negev found only a small relationship between tips and service quality. He concluded that other factors had more influence on the type of service that you’re likely to get.

If anything, I suspect that eliminating tipping and giving waiters a stable, living wage would improve the quality of service. Without the vagaries of tips, restaurant employees would have a consistent, dependable income—and, perhaps, higher job satisfaction. That would help lower employee turnover and raise profits for the restaurant. These are all fine reasons why more restaurants should get rid of tipping.

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Dear Dan,

I’ve found that the most interesting people to talk to are often obsessed with a topic, whether it is food, music or economics. How can I increase my likelihood of meeting this type of person? What questions can I ask to uncover people’s passions when I meet them?

—Riley 

When we meet someone new, most of us have a puzzling tendency to start the conversation as if we are exchanging resumes. We typically don’t go beyond questions like “What do you do?” and “Where are you from?” But the key to a good conversation isn’t meeting the right type of person; rather, as you suggest, the trick is asking questions that allow almost anyone to reveal who they are, what they have experienced and what they are passionate about.

Often, the questions that can help put a bit more depth into our conversations are more complex than the standard “What do you do” approaches. They also require more openness, effort and daring from the person asking the questions. Think of asking new friends about their ideal dinner companion, living or dead, or about the heroes they most admire or about the aspects of their life for which they’re most profoundly grateful. It may be a little unfamiliar, but such questions do get conversations going in very different directions.

I know from personal experience that starting conversations by asking nonstandard questions isn’t always easy. But as you get more used to asking such questions, your discussions will become more interesting. We all want lives filled with meaning, so we should get beyond the default of vacuous conversation-starters.

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Dear Dan,

I recently learned about the Stockholm syndrome, in which captives develop sympathetic feelings for their captors. I know that the parallel isn’t exact, but does this dynamic operate in marriages too, with both partners (in a metaphorical and emotional sense) seeing themselves as imprisoned in a way and the attraction to the person “capturing” them creating a stronger relationship?

—Abhinav

Sorry, but the Stockholm syndrome just isn’t a sensible way to think about marriage—not least because marriage lacks the glaring power difference between the person doing the capturing and the person being captured. But now that I think about it, maybe the syndrome is a good way to think about spending the holidays at your in-laws, and perhaps this glue helps keep families together during those trying times.

See the original article in the Wall Street Journal here.

The Switching Type

November 2, 2016 BY danariely

Companies in the electric power industry want to keep their current customers and attract new ones. But when customers move to a new residence, they often switch providers. So, what’s the most effective way to convince these customers to switch back? A recent study suggests that goal-oriented go-getters are motivated not just by saving money, but by completing a task. Julie O’Brien, a research associate at Duke’s Center for Advanced Hindsight, discribes the “switching type” a personality trait and a novel way to appeal to customers.

 

And the iTunes link:

https://itunes.apple.com/us/podcast/the-switching-type/id420535283?i=1000377340352&mt=2