Ask Ariely: On Damaged Trust, Strategic Styling, and Poor Placement
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,
Recently, our babysitter asked to borrow my car—then had a minor accident that cost about $1,000 to fix. Should I charge her for the repairs?
—Neta
You shouldn’t, for two reasons. To view this problem through a more general mindset, let’s assume that the culprit wasn’t your babysitter and that the object in question wasn’t your car—instead, let’s imagine you’d loaned your neighbor your electric drill and it broke while he hanging a picture. He might offer to pay for the drill, but if he didn’t, would you ask him to pay for it? Probably not. You’d understand that wear and tear happens, that the breakage probably wasn’t your neighbor’s fault and that the drill would have broken anyway. In contrast, when someone has a car accident, we’re quick to blame them—but from time to time, accidents just happen through no fault of the driver’s. Maybe this is a good opportunity to accept the accident as part of wear and tear on the car.
Another reason why you shouldn’t ask the babysitter to pay: They’re your babysitter, and while they might be a very trustworthy teenager, you were the one who decided to lend them your car. Best to own up to that responsibility.
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Dear Dan,
I’m planning to hire a professional clothing stylist to study my body type and style and advise me on which clothes to keep and which to give away. I’m considering two options: first, asking her to take all the clothes she doesn’t approve of out of my closet, and second, to first take everything out and then put back the things she thinks pass muster. Which approach would you recommend?
—Maria
You’re right to suspect that the two methods will probably result in different outcomes. The reason is the “status quo bias”—the tendency to leave things as they are. If you start with all the clothes in the closet, the effort required to keep items there is lower than the effort required to take them out, which means that fewer clothes will end up being given away. On the other hand, if you start with all your clothes out of the closet, the lower-effort course involves leaving clothes where they are, which means more things will end up being given away.
But you’re unlikely to apply the status quo bias evenly to your whole wardrobe: The clothes that are clearly great will probably stay with you regardless of your method, and the clothes that are just awful will probably be given away either way too. The difference will come from the “Goldilocks clothes”—the ones that rest somewhere between those two clear categories. The real question is how many of these Goldilocks clothes you want to keep.
Two more points: If you don’t fully trust the stylist, you might start with the “all clothes in” approach, take fewer risks and keep more of the Goldilocks clothes. Also, some clothes will have sentimental value even if someone else thinks they look awful on you – so keep these. After all, we dress for ourselves, not just for other people.
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Dear Dan,
What is the best example of human irrationality?
—Bill
I must admit I’ve never understood why the most important medical center in the world, the Mayo Clinic, is conveniently located in balmy Rochester, Minn. I’ve benefited enormously from their care—but it’s a long trip.
See the original article in the Wall Street Journal here.
Ask Ariely: On Beating a Breakup, The Food Fight, and Diesel Deception
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 boyfriend and I recently broke up, and the anguish and depression have been hard to bear. How can I cope with the feeling that my life has come to a halt?
—Inbal
In general, when we experience a strong emotion—whether it is anger, joy or grief—we tend to believe that it will stay with us for a very long time. In fact, time dulls the sensation far faster than we expect. The end of a relationship can be a terribly difficult life event, but studies show that people expect the pain of a broken heart to last much longer than it actually does.
One way to make things easier on yourself, while the agony subsides, is to change as many of your life patterns as possible so that you don’t constantly run into painful reminders of your ex.
Go to different restaurants and meet new people. If you can, take a trip to a place you’ve never visited before.
Breakups are one of the great universal human experiences. I wish that I had a simple silver-bullet solution for the pain they cause, but I don’t.
Personally, I think that enduring a difficult separation is an experience that we can learn from—and a way to increase our chances for doing better the next time around.
Maybe it would help to look at the pain as a byproduct of learning.
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Dear Dan,
People today are far more aware of the dangers of obesity—we even hear about a public war on it. But we keep eating and eating. I certainly do, and I don’t know how to change. What’s our problem?
—Dror
We aren’t focusing on the right things. We’re fighting the obesity epidemic by providing people with education and nutritional information—based on the assumption that knowledge will encourage us to make better decisions. But that’s not how people behave.
In an experiment led by my former Duke University colleague Janet Schwartz, our team went to a Chinese fast-food restaurant to try to see what effect providing nutritional information and calorie counts would have on diners. Some days, we placed that information next to each dish; other days we hid it.
The effect? Nothing. The knowledge that some dishes were much less healthy than others made no difference whatsoever on customers.
The British chef Jamie Oliver recently made a similar point. He showed children all the gross bird parts used to make their beloved chicken nuggets—bones, tendons, skin and worse—then ground the disgusting mix into a paste and fried it in breadcrumbs. When he took the nuggets out of the pan, the kids still all wanted to eat them.
If we forget what we’re eating so quickly, what hope does health education have?
The upshot, I’d argue, is that if we want to change eating behavior, we need to ditch the failed educational approach.
For example, instead of allowing people to buy a 64 oz. soda while providing them with calorie information that we hope will make them decide on a healthier option, why not simply limit the size from the start?
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Dear Dan,
Volkswagen recently admitted to cheating on emissions tests in its diesel-powered cars. What’s your take?
—Maya
As the owner of a VW Golf myself (not diesel), I’m deeply offended by the company’s emissions fixing, and I haven’t been able to look at my car in the same way since. Time will tell whether we can patch up our relationship.
See the original article in the Wall Street Journal here.
Ask Ariely: On Midnight Misbehaviors, Strike Outs, and Beverage Budgets
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 recently saw an episode of “How I Met Your Mother” in which one of the characters says, “Nothing good ever happens after 2 a.m.” I totally agree. But why? Does the dark make us misbehave, or is it something else? How can we stay safe and responsible in the wee hours?
—Aaron
You’re probably right that bad things are more likely to happen after 2 a.m. During the day, we face many temptations, and we overpower them with self-control.
But that control is like a muscle, and it gets tired from repeated use—not physical exhaustion but a mental fatigue that comes from making responsible, restrained choices over and over.
So when night falls, we can simply be too tired to keep being good and restrained—leaving us ready to fail.
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Dear Dan,
I’m a high-school science teacher and a dean. We’ve had to discipline a number of students for cheating or plagiarism. Under our “two strikes and you’re out” policy, this puts them on the verge of getting kicked out of school after one infraction. The students were remorseful and confident that they would never again find themselves ripping off documents or copying papers—but then many of them cheated again. How can we better equip them to avoid such pitfalls?
—Morgan
It turns out that the fear of being caught doesn’t do much to deter crime in general. Even states that have the death penalty don’t report any noticeable difference in crime rates compared with those that don’t, according to a 2012 report by the National Research Council of the National Academies.
California’s “three strikes and you’re out” law was designed to take repeat criminals off the streets and deter offenders from repeated crimes. The theory was that if you knew that a third strike carried an especially harsh penalty, you would be deterred from further crimes.
But “three strikes and you’re out” didn’t seem to have a big effect on crime rates, according to a March 2000 study by James Austin and colleagues. And if “three strikes” didn’t work for crime, it’s unlikely to work for academic misdeeds.
We need to look for more effective approaches. Ultimately, what often stops us isn’t the fear of punishment but our own sense of right and wrong.
So you need to develop your students’ moral compasses. Maybe you should spend as much time on ethics as you do on math and history. After all, when they leave school, they’ll start applying their morals (whatever they are) to the world we share.
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Dear Dan,
On a recent business trip to San Francisco, I showed up early for a meeting, so I went to wait in a coffee shop. A cup of coffee was $8, and it was full of young people. Don’t they have anything better to do with their money? Don’t they have jobs? Don’t they find it morally reprehensible to spend more than the hourly minimum wage on a cup of coffee?
—Maria
I feel the same way. Still, it is all relative: If the liquid in question was wine, at just $8 a glass, we might not feel so offended. Maybe we need to be a bit less prejudiced against coffee.
See the original article in the Wall Street Journal here.
Ask Ariely: On Denied Desserts, Trusted Faces, and Biased Brokers
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’m a single guy in my early 30s, and I often take potential romantic partners out for dinner. When the question of dessert comes up, I’m never sure what to do. To be polite, I always ask my date if she’s interested in dessert, and the answer is almost always no. I then feel bad about ordering dessert myself, so I turn it down as well. Is it impolite to have dessert even if my date has decided not to?
—Lev
It is most likely impolite not to order dessert. I’m basing that on two assumptions: first, that everyone enjoys at least a bit of dessert, and second, that your date may well be worried that, by ordering dessert, she would be signaling that she doesn’t care about her weight (which is a pity, of course, but it’s part of the reality of dating). With these assumptions in mind, I’d suggest that you ask her instead which dessert she loves most—and order one of those, with two spoons.
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Dear Dan,
Lots of candidates are running for president. Some are proven liars, backstabbers or double-dealers; others are arrogant and self-important; still more break their promises. I wouldn’t want to hang around any of these people, but many Americans would vote for them. Don’t we care about honesty and trust?
—Daniel
Americans certainly care about trust—but in a slightly different way than you might think. We often care most about the trustworthiness of candidates’ faces.
Alex Todorov, a Princeton psychology professor, has done some wonderful experiments on this topic. In one, he showed some Princeton undergraduates pictures of people running for local office in Canada and asked them to rate the trustworthiness of the candidates. The Princeton students had never seen these people before and knew nothing about local elections in Canada.
Dr. Todorov then examined the number of elections won by the candidates in the photos and found that the students’ ratings of trustworthiness predicted more than 90% of the election results. It would appear that Canadian voters made basically the same judgment: They evaluated their politicians through simple, superficial judgments based on their faces.
We like to think we assess candidates based on their policies, experience, honesty and so on, but it doesn’t seem to be the case. Just a Canadian thing? I don’t think so. I suspect that even in important domains such as politics, we all make these sorts of rapid, emotional judgments. Maybe we need to go back and read what politicians are saying rather than just watch them perform on stage.
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Dear Dan,
Can financial advisers, brokers and others in the financial industry truly follow their fiduciary responsibilities when they are paid on commission?
—Helene
If you’re asking whether they can act in their customers’ best interests and give objective advice, the answer is no. Even more depressing, it seems humanly impossible to be paid more for some outcomes than others—to get more money if the client invests in stock A rather than stock B—and avoid bias.
I’m not saying that financial advisers do this intentionally. We all do it when our interests motivate us to see the world in a particular way: We use our tremendous brainpower to convince ourselves that what is good for us is also objectively good.
That’s why we must eliminate (or at least reduce) conflicts of interests in the markets—and why you should always try to figure out whether your service providers have conflicts of interests. Luckily, in the U.S., we understand these pitfalls and don’t allow our politicians to be corrupted by special interests or money.
See the original article in the Wall Street Journal here.
Ask Ariely: On Fun Money, Santa, and Feeling Old
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 parents, both over 60, have retired from careers in government service, with good retirement funds plus a decent monthly pension. When they were young, they faced a lot of financial difficulties, so over the years, they have turned into misers. They don’t go on holidays, dine out or indulge in any way; they buy substandard groceries, take public transportation to save on gas and fret over even petty expenses. I want them to enjoy the rest of their lives without such worries. What should I do to change their behavior regarding money.
—Vivek
Your parents’ problem comes bundled with substantial benefits. Saving early in life and living modestly are key to a healthy retirement, and I wish that more people in the U.S. behaved this way. You probably owe much of your own financial well-being and your mind-set toward money to this exemplary behavior.
That said, now that your parents are comfortable, it would be good if they were able to enjoy life to a higher degree. If I were you, I would sit with them and go over their monthly balance sheet to try to figure out how much money is coming in every month and how much they are spending on necessities.
With these numbers in hand, I would look at how much extra income they have every month—and call these funds “fun money.” Next, I would get them two prepaid debit cards and set up an automatic monthly transfer of the fun money from their checking account to the cards. In this way, the fun money will be set aside from the beginning, with a different physical identity and declared purpose—a little like chips in a casino. If you want to further drive the point home, put large red stickers on the cards and write “Fun” on them.
Finally, for the first few months, you could go over the statements with them to make sure that they are indeed spending the money in ways that make them happy.
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Dear Dan,
Do you think it’s acceptable for parents (and society in general) to lie to young children about the existence of Santa? I don’t, but I seem to be in the minority.
—Charlotte
My research center recently completed a documentary on dishonesty in which we interviewed individuals who had committed misdeeds, from insider trading to doping to infidelity. Many people, we found, take one wrong step, then rationalize it, then take another—and soon they’re on a slippery slope.
All of which is to say: It is wrong to lie to kids about Santa. You might start with a fib about Santa, but next it could be the Tooth Fairy, and after that, maybe it’s Superman, the Avengers and who knows what else.
More seriously: Your children will find out at some point, and when they do, it could cause a loss of trust that could be very unhealthy.
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Dear Dan,
When I was a teenager and my parents were in their 40s, they seemed old to me. Now I am almost 40, and I still feel young. Is it true that we stay young for longer these days? In the 21st century, when do people start feeling old?
—Nina
Despite our amazing advances, we don’t stay young for longer. The difference is your perspective. We look at ourselves as the standard, paying less attention to differences that we consider positive and overemphasizing ones we see as negative. As for your question about when we start feeling old, that’s simple: We start feeling old when we look forward more to a good night’s sleep than to a night of passion.
See the original article in the Wall Street Journal here.
Ask Ariely: On Risky Questionnaires, Great Expectations, and Victims of Piracy
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.
This week, in celebration of my new book Irrationally Yours (which is based on this column), I’d like to share some feedback that I received from a reader. Please enjoy the video.
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Dear Dan,
I am ready to start investing for my retirement, but I’m struggling with those risk questionnaires. I’m not sure that I really know any of the answers. The results show that I’m somewhat conservative, but I don’t trust their conclusions. Any advice?
—Rick
Deciding how much risk to stomach in your investment plans is a huge decision that will have a major impact on your savings and ability to retire. AND I don’t think you should base that big decision on your response to some risk-assessment questionnaire. The questions in most of these risk-attitude-assessment tools are about feelings, but you should focus on how much money you’ll need to retire and the quality of life you would have under different investment scenarios. Let’s just assume that you hate the feeling of losing. So what? Should we doom you to a life of poverty just because you feel bad when you lose money? My advice: Figure out how your life might look like with various investment approaches, figure out which tradeoffs you are (and aren’t) willing to make and plan your investments accordingly. Meanwhile, you can deal with your fear of risk directly. Learn yoga, meditate, take some medication, avoid looking at your portfolio more than twice a year—do whatever you need to deal with your emotions, but make sure that doesn’t interfere with the way you decide to invest.
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Dear Dan,
The other day, I ordered a new drink, a “London Fog tea latte,” at a local café. It arrived on the counter in a porcelain teacup with a saucer, and four lavender seeds were arranged in a fleur-de-lis at the center of the froth. The barista gave me a bestowing nod. It was the best tea latte I’d ever tasted; I found myself saying “Mmm” before the cup even reached my lips. Do our expectations actually affect how things taste to us?
—Chelsea
For sure. In an experiment we conducted about ten years ago at MIT, we gave the students two small beer samples and asked them to pick the one they wanted a full glass of. One sample was just plain beer, but the other sample was a regular beer plus some balsamic vinegar. We didn’t tell some students about the special ingredient, and they liked the beer with the dark additive. But when we told our tasters about the vinegar, their expectations kicked in; they expected to hate it and sure enough, they did. Such results show that expectations do indeed change what we like. More important, they show us that expectations are a fascinating interplay between our brain and our mind. We are always trying to predict the future and prepare for it. As our body changes to accommodate to the anticipated experience, it also makes those anticipations more likely to materialize. This is why expectations can change our actual experience—and why we should embrace them as much as we can. (My next answer, by the way, is going to be particularly insightful. Wait 30 seconds, and read on.)
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Dear Dan,
My nephew has been downloading music and movies illegally from the Internet. How can I get him to respect intellectual-property rights without sounding self-righteous?
—Patricia
My own view on illegal downloads was deeply modified the day that my book on dishonesty was published—when I learned that it had been illegally downloaded more than 20,000 times from one website. (The irony did not escape me.) My advice? Get your nephew to create something and then, without him knowing, put it online and download it many, many times. I suspect that will make it much harder for him to keep up his blithe attitude toward piracy.
See the original article in the Wall Street Journal here.
Ask Ariely: On Ephemeral Emotions, Getting Gadgets, and Treacherous Taxes
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,
Every time a severe natural disaster strikes, like a typhoon or the outbreak of a new epidemic, everyone starts talking about how to combat these problems, but all the chatter dies down in a week or two. Given the importance of these issues and the number of lives they affect, why do we have such short-term memories? And how do you keep up interest in topics like these?
—Akhil
The problem isn’t with memory—it is with emotions. Every time we see those televised images of disaster, our emotions get ignited, we care, and we want to act. But over time, our emotions inevitably subside, and we stop caring.
If the problem here just had to do with memory, finding a fix would be simple: We have plenty of ways to remind people about important things they forgot. But we don’t know how to fully re-invoke emotions.
So what can we do? I’d suggest crafting legislation to deal with such crises in advance, then just holding onto it until the next disaster strikes. Then, while emotions are running high, take the bill out of the drawer and try to get people to commit to some concrete steps forward.
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Dear Dan,
What should I know about a product before I buy it?
—Pat
When we look for a product—say, a new electronic gadget—we usually try to understand exactly what it does, how it works, what are its features, etc. We hope this will help us figure out if the product is right for us and worth all that money. The downside of this approach is that the knowledge it provides often reduces the fun, surprise and discovery that come with experimenting with a new electronic gizmo.
Ideally, someone would be able to tell us whether we should get the product or not, while leaving us to discover our new gadget’s capabilities after we’re holding it. Another advantage to this approach: It leaves us to enjoy more buildup and anticipation as we wait for the gadget to arrive.
When I was looking for a new camera, I asked my friend David (my personal expert on everything technological) what he thought I should get, and I purchased the exact camera he suggested without even checking the details. Then I started anticipating its arrival, and I enjoyed learning all about it by playing with it after it was delivered. Maybe you should try to get your own David.
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Dear Dan,
What percent of Americans cheat on their taxes?
—Lee
I’m not sure, but it’s clearly a large amount: Pew Research estimated that the IRS lost about $270 billion dollars for tax “underreporting” in 2010. I tend to agree with Will Rogers, who once said, “The income tax has made liars out of more Americans than golf.”
Taxes don’t just tempt many Americans to cheat. They also kill us. A 2012 paper by Donald Redelmeier and Christopher Yarnell published in the Journal of The American Medical Association found that over the past 30 years, fatal accidents increase by about 6% on April 15 compared to standard days. The authors chalk this up to stress. They also show that this increase doesn’t hold for people at retirement age (who, presumably, aren’t that stressed about taxes), has increased over time (suggesting we’ve been under more stress as U.S. taxes have grown more complex) and is particularly large for those of us on the West Coast (where state taxes are particularly high).
Of course, these two findings—increased dishonesty and increased stress—could be linked. So this tax season, please try to be safe when filling out and delivering your 1040s.
See the original article in the Wall Street Journal here. (add link to “here” and delete this)
Ask Ariely: On Reasonable Requests, Trash Talk, and Paper Piles
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 fly by myself every week for work. I always fly coach and try to book my trips months in advance so I can get an aisle seat closer to the front of the plane. With fuller flights nowadays, I am frequently asked to move to accommodate a family or a couple who want to sit next to each other. I usually say yes and end up in a middle seat at the rear of the plane, which I hate. On the few occasions I have declined to move, the cabin crew has treated me like the enemy for the entire flight. How do I handle such situations?
—Kevin
Many years ago, Harvard psychology professor Ellen Langer carried out one of my all-time favorite studies. She asked her research assistants to look for lines for photocopiers, approach someone waiting to make copies and say, “Excuse me, can I get in line in front of you?” Unsurprisingly, this request was usually refused. Prof. Langer then had her research assistants change their phrasing and instead ask, “Excuse me, can I get in line in front of you—I need to make a photocopy” With this new version, they were frequently allowed to cut in. Obviously, the second phrase held no new information—why would anyone join this line if not to make a photocopy? But the longer phrasing had the structure of a reason-based-request: Excuse me, may I do X, I need Y. Prof. Langer showed that because people often don’t pay attention to what we say, it is sometimes enough to say something that sounds reasonable—and people will often agree.
So what can you say to the flight crew? It doesn’t really matter; it just needs to sound like a reason.
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Dear Dan,
The other day, I saw someone throw out garbage from her car. Other than pick up after her, should I have said something? If so, what? I was concerned about starting a confrontation that could have turned ugly.
—Blaine
You should have certainly said something—perhaps something like, “Excuse me—I’m new in town, and I’m trying to figure out the local customs. Is throwing out trash from the car window something that is common here?”
You should have spoken up not only because it might make her think twice in the future but also for you. At some point, you will inevitably encounter bigger injustices and even more inappropriate behavior. How can you expect to stand firm in these large cases if something as simple as a comment about trash left you too fearful to speak up? Think about such small cases of confrontation as training wheels that will help move you toward becoming the person you want to be—and start practicing.
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Dear Dan,
I have this pile of papers on my desk. It is growing by the day, and the clutter is driving me crazy. At the same time, I don’t feel like I can handle my regular workload, so I keep postponing clearing up the pile—and it keeps getting larger and more daunting. Any advice?
—Marc
Sometimes, we need to be forced to make a decision. My advice: spill a cup of coffee on your pile of papers. A few weeks ago, I was grappling with a similar problem, and one morning, while on a video conference call, I reached out to pick up my coffee and knocked it onto the pile of papers. I then had to look at each page and decide whether it was worth cleaning and drying. Most of them were useless.
See the original article in the Wall Street Journal here.
Ask Ariely: On Honoring Housework, BE to Business, and Laundering Linens
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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Many women don’t feel recognized for all the work they do at home. When their husbands come home late from the office to something other than total bedlam, the oblivious men often fail to provide any appreciation or recognition. Would it help if women got paid for their housework? And if so, what is the best way to set up those payments?
—Lisa
I can’t think of any context in which one partner in a family should directly pay the other. But we do need to make sure that earning inequality doesn’t turn into power inequality.
One of the best (and worst) things about money is that it is easy to measure. So each partner’s financial contributions to the household are very clear, and differences can be overemphasized.
Consider a couple in which Person A earns much more than Person B, but Person B does everything else for the household. In such a case, A’s contribution to the relationship is easily quantified (bringing home most of the bacon), whereas B’s bit (taking care of the house, raising the children, dealing with paperwork, bills and so on) can’t be measured as precisely.
If the couple focuses on what’s easy to measure, A’s contribution looks more central. So A could feel more deserving, entitled and commanding while contributing less overall.
There is no magical solution to this problem, but one good step is to deal directly with the flow of money. Start by having one joint checking account for all income and ongoing expenses. On top of that, open two separate savings accounts (one for each partner), and split all savings equally into them.
Legally speaking, this type of accounting doesn’t make any difference, but in psychological terms, it makes a key statement about equality in financial contributions. It could weaken the link between financial contribution and power and offer a more holistic view of contributions to family life.
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What can businesses learn from your academic field of behavioral economics?
—Bella
As with any other scientific endeavor, my field has reached, over time, a better understanding of its domain—human behavior. The process has been slow, but the lessons are accumulating.
We have found, for example, the principle of loss aversion: It turns out that we humans hate losing more than we enjoy gaining. Or the IKEA effect—the finding that, once we take part in making something (like IKEA furniture), we start really liking it, and we assume that other people will like our creation too. These are discoveries that businesses can use in developing their products and services.
For all that we’ve learned, however, I suspect that the most important lesson is how little we know—the lesson of humility. We understand a great deal about human behavior, but we also have a lot of gaps, assumptions and blind spots. By training, social scientists are happy to admit how little we really know and much room there is for improvement.
If businesses adopted this approach, trusting their intuitions less and relying on research more, they would get a very high return on investment. Admitting our shortcomings is an important first step.
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We host a lot of overnight guests. Should I change the sheets on the guest bed every time a new guest arrives, even if the last one only stayed with us for one night? —Debbie
I am sure that you don’t want to tell your new guests that they are using “only slightly used linens,” and I am almost sure that you don’t want to hide things from your guests—so yes, change the sheets every time.
See the original article in the Wall Street Journal here.
Ask Ariely: On an Odorous Obstacle, Great Gift-giving, and Dealing with Dimes
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,
How would you handle a community college student who—bluntly put—just smells absolutely horrendous? My other students are complaining that they can’t focus in the classroom. I think that the student should be made aware of her smell so that she can try to resolve it and avoid jeopardizing her social and professional future—but I’m not sure how to broach the topic.
— Kelly
Sharing this information isn’t going to be easy, but doing so could create many long-term benefits for the student, the community and maybe even yourself—which is why you should definitely tell her.
It might be tempting to convey the information anonymously, which would save you some awkwardness, but it isn’t in the student’s best interest. Some research shows that it is particularly nice to get an anonymous love note because the uncertainty lets us imagine that we are adored by many people. The opposite is likely to be the case with an anonymous note about a negative trait.
My advice: sit the student down and break the news to her. You could start by saying that some people are more sensitive to smell than others and that you suspect her sensitivity is below average. Next, tell her that she has an odor that is noticeable to others and add that you worry that this is making interactions more difficult for her. Finally, offer your ongoing help as she tries to figure out what works for her and what doesn’t.
One last point: A while ago, I decided that every time I see someone with something in their teeth, I would tell them about it. Making this a rule was very helpful for me because now I don’t even need to consider whether to raise this potentially embarrassing point—and 100% of the time, people have thanked me for telling them.
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Dear Dan,
What’s the best way to give a guest speaker a gift they would truly love and appreciate?
—Wilma
Not long ago, I gave some lectures to a very nice group of people. At the end of the retreat, they held an auction of all kinds of souvenirs, and I bid on a homemade blanket that I particularly liked. Later that night, I discovered, they took the blanket out of the auction after I bid on it and gave it to me as a gift.
This was particularly nice for three reasons. First, I clearly liked the blanket because I bid on it. Second, I assumed that other people also wanted it. And finally, it didn’t have a real market value. All this made it a wonderful, highly appreciated gift without a specific price tag.
If you’re willing to be a bit manipulative, you could take this approach a step further: What if you held a live auction, and when you saw something that the guest speaker was interested in, you got other people to dramatically outbid him or her (offering, say, 10 times more than the speaker would)—and, at the end of the night, gave the item in question to the speaker? This process would make clear that your guest coveted the item, as did other people, and that its value was very high. Clearly an ideal gift.
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Dear Dan,
Why will many people not stop on the street to pick up a dime but would certainly stop to pick up a dime if it fell out of their pocket? Isn’t the value of 10 cents the same in both cases?
—Baruch
These might seem like the same case, but they aren’t. When we pick up 10 cents, we add to our wealth (just a bit), but when we reclaim a dime that we dropped, we prevent a loss—and preventing a loss is much more important and valuable.
See the original article in the Wall Street Journal here.