DAN ARIELY

Updates

Ask Ariely: On Pleasing Presents and Sympathizing Sibling

August 27, 2022 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,

My aunt gave me some money for my birthday. Since she wasn’t sure about my likes and dislikes, she said to spend it on something that would make me happy. Do you have any advice on how to choose?

—Katy

While I’m sure there are many items that would make you happy, spending the money on someone else could make you even happier. In an experiment, researchers gave participants either $5 or $20. They then randomly asked the participants to go about their day and spend that money either on themselves or on someone else. Later, the researchers asked them about their happiness. Those who had spent the money on someone else, regardless of the amount, reported feeling happier throughout the day.

But what to buy these other people in order to get both the glow from gift-giving and something that they will like? A different set of researchers asked people to name the last gift that they had received and say how happy they were with it.

Though gift recipients were happy with items that they had wanted, on average they were even happier with unexpected and surprising gifts. These made them appreciate the thought from the sender and got them to experience something new. Hopefully your aunt will also appreciate how you choose to spend her gift money.

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Dear Dan,

My sister is one of my closest friends, and she’s usually one of the first people I call when I need solid advice or someone to talk to. Our lives, however, are pretty different, and they are starting to differ more. Sometimes I hesitate to open up and ask for her advice because I’m not sure she can relate to what I’m going through. What should I do? Should I look for someone else to get feedback and advice from?

—Ingrid

It’s reasonable to think that it is best for someone to have “been there” in order to understand you and give you good advice. Indeed, a recent survey found that people predicted that a shared experience would lead to greater insights. But is that true?

In one experiment, participants listened to a short video describing a negative emotional experience. They were asked to analyze how the storyteller was feeling about the experience and also indicate if they had a similar story from their own past. The results showed that listeners who had a negative experience in common with a storyteller were much less accurate at describing how the storyteller felt.

It may be that people were more likely to focus on their own similar experience if they had one, which shifted their focus away from how the storyteller was feeling. These results suggest that even though someone has “been there,” they might not understand how you’re feeling in the moment you most need support.

So while your sister might not be going through the same things as you, that doesn’t mean she can’t empathize. In fact, her distance from your exact situation—but closeness with you—might give her a perspective nobody else can offer. Stick with your sister.

The Psychology of Gift-Giving

December 20, 2009 BY danariely

Here it is again: holiday gift-giving season – the best win-win of the year for some, and a time to regret having so many relatives for others.

Whatever your gift philosophy, you may be thinking that you would be happier if you could just spend the money on yourself – but according to a three-part study by Elizabeth Dunn, Lara Aknin, and Michael Norton, givers can get more happiness than people who spend the money on themselves.

Liz, Lara and Mike approached the study from the perspective that happiness is less dependent on stable circumstances (income) and more on the day-to-day activities in which a person chooses to engage (gift-giving vs. personal purchases).

To that end, they surveyed a representative sample of 632 Americans on their spending choices and happiness levels and found that while the amount of personal spending (bills included) was unrelated to reported happiness, prosocial spending was associated with significantly higher happiness.

Next, they took a longitudinal approach to the topic: they gave out work bonuses to employees at a company and later checked who was happier – those who spent the money on themselves, or those who put it toward gifts or charity. Again they found that prosocial spending was the only significant predictor of happiness.

But because correlation doesn’t imply causation, they next took one more, experimental, look at the topic. Here, they randomly assigned participants to “you must spend the money on other people” and “spend the money on yourself” conditions — and gave them either $5 or $20 to spend by the day’s end. They then had participants rate their happiness levels both before and just after the experiment.

The results here were once more in favor of prosocial spending: though the amount of money  ($5 vs $20) played no significant role on happiness, the type of spending did.

Surprised by the outcome? You’re not the only one: the researchers later asked other participants to predict the results and learned that 63% of them mistakenly thought that personal spending would bring more job than prosocial purchases.

Happy holidays

Dan