DAN ARIELY

Updates

Ask Ariely: On Stretching Time, Coining Decisions, and Gifts of Effort (not money)

January 5, 2013 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

My best buddies and I have a tradition of going on a one-week ski trip once a year. We’ve been doing it for most of the past decade. The idea is that it’s just us guys on the mountain, enjoying the good company and snow. We cherish these moments and can’t wait for the week to arrive every year.

The problem is that once we land at our ski destination, time seems to go by at light speed. The week ends amazingly quickly and when we look back at our time together it seems even shorter. I know that “time flies when you are having fun,” but is there a way to perceive the week as longer?

—Avi

Given the way you phrased the question, the answer is simple: Take your wives with you. (Sorry, I couldn’t resist.)

But more to the point: I suspect that one of the reasons that your vacations seem so short, both in the experience and in your memory after the fact, is because the days of skiing are so similar to each other that they blend together in your memory into one very long day rather than a weeklong vacation.

On your next trip, try to make the days more differentiated from one another. Try snowboarding one day, take a lesson on another day, or just change your ski equipment from time to time. You could take a day off from skiing and go sledding or meet the locals. The point is that even if some days wind up with activities that you enjoy less at the moment (like bowling, for example), the ability to differentiate that day from the other days will help you categorize the vacation as a series of distinct experiences instead of one big glob of skiing. This way, you will get more joy from the memory of these experiences.

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Dear Dan,

A few weeks ago in your column you suggested spinning a penny as a way to make decisions between two similar options. You argued that having to face the moment of truth makes us realize what we really want as the outcome.

This approach might be useful when deep down inside it is clear which way you want the penny to fall, but what about decisions where what you desire is not good for you? For example, when the decision is between chocolate cake and fruit. In this case, you know very well how you want the coin to fall, and flipping the coin doesn’t seem to be very useful.

Any advice on how to deal with such conflicts between the head and the heart?

—Gavin

You’re right. The coin trick is indeed only useful for cases where the two options are of the same type (two cameras, two movies, etc). In your example, one option is more tempting in the short term (chocolate cake) while the other is better in the long term (fruit). In such cases we should not trust our gut feelings to drive us to the best decisions.

Looking around, it is easy to see that we often succumb to temptation and take the option that has short-term benefits and long-term downsides (in your example, this is the chocolate cake). The basic problem is that when we make such decisions we are often “under the influence” of the chocolate cake. Its closeness blinds us to the comparative long-term benefits of a piece of fruit (or, simply not eating the cake). So what can we do? Every time you face such decisions, pretend that it is not about what to do now but what you would like to do a week from now. For example, think of the choice between chocolate cake and fruit for dessert as a decision that you are making for exactly one week from today. When the choice is framed this way, you might be more able to override the influence of your current emotional state and pick the option with long-term benefits.

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Dear Dan,

I just bought a pair of basketball tickets and I plan to treat my friend to an afternoon of slack-jawed wonder as Kevin Durant dismantles our hometown Raptors. Here’s the thing: My friend is very generous and semiwealthy. If I tell him the tickets are on me, he’ll insist on paying…but if I tell him the tickets were free (the only way he’ll let me off the hook about the price), I’ll lose that weird cachet that comes from giving an expensive gift. What to do?

—Gil

Here is what I would do: Take your income per month (for simplicity, say $10,000) and divide it by the cost of the two tickets (again for simplicity, say $200). Now multiply this number by the number of hours you work per month (let’s say 160), and you get the numbers of hours that you need to work to pay for the tickets (3.2 hours in this case). Now, tell your friend “it took me more than 3 hours of hard labor to get these tickets.” (After all, you might not want to tell your friend exactly how much you make.) With this kind of framing, not only will your friend not be able to pay for the tickets, but he will also appreciate your investment in him and your friendship to a higher degree.

See the original article in the Wall Street Journal here.

Ask Ariely: On whistleblowing, Zipcars, and the rosy effect of the unexplored

December 10, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

I was the whistleblower for a very large corporate disaster. Since the whistleblowing, I have been shocked at the vitriol and social exclusion I have suffered as a result of speaking the truth. What is it about whistleblowers that makes society want to exclude them? Any insights and guidance would be most welcome.

—Wendy

From what I understand, the backlash you are experiencing is very common among whistleblowers.

In thinking about your issue, I reflected on why I want my kids (ages 10 and 6) to solve their problems themselves, without involving higher authorities (their parents). Tattling is considered very negative behavior. Of course, sometimes my kids have legitimate claims that require an intervention from the “authorities,” but my negative reaction to tattling suggests that I’m willing to accept some violations of justice in order to have the problems solved internally.

Perhaps the friends of whistleblowers see them as not truly part of the social circle, since they’ve shown willingness to seek external authorities when conflicts emerge. Maybe your social exclusion is due to a belief that when problems emerge in the future, you will again look for an external authority? If you were Tom Sawyer, you could cut your hand and mix your blood with that of your friends to symbolize your connection, but given that this might not work for your age group, perhaps you need to find a related ritual that will show your commitment to the social group.

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Dear Dan,

I live in a quasi-urban area near Washington, D.C., don’t own a car and take the metro to work. Near my home is a fleet of Zipcars (a car-sharing system starting at $8 an hour, including gas, insurance and up to 180 miles of driving in a day). If I bought a car, the monthly costs alone (insurance, parking) would amount to about $200; then there’s the purchase of the car, gas and tolls. For that money I could regularly rent Zipcars.

So why don’t I? I could go to different restaurants and entertainment. But each time I think of doing this, I ask myself whether I want to spend the extra money to rent the car and usually decide against it.

This issue comes up the most with groceries. There’s a fantastic supermarket a quick drive away that sells much better and cheaper produce than my local store. In the end, I feel like I’m choosing between (1) overpaying at my local store and feeling cheated and (2) going to the better store but also feeling cheated because I spent $30 on a Zipcar to save that same amount on groceries. What do you suggest?

—Michal

What you’re experiencing is a conflict between your enjoyment of a better supermarket and your cost-benefit analysis. What’s interesting is that if you bought a car, you’d spend much more money overall, but on any given week you wouldn’t feel the pain of paying to get to the supermarket. Because a car can be used for so many different purposes, no single one will feel like the reason for the car, and you’d only focus on the marginal cost of driving a few extra miles, despite the car’s overall expense and inefficiency.

Instead, you could try calling Zipcar and offering to pay them in advance for three hours of car use four times a month for a year. This way you wouldn’t undergo a cost-benefit calculus for every visit to the supermarket.

And if you can’t convince Zipcar to do this, how about putting the money you’re saving by not having a car into a “Zipcar” bank account, and linking the Zipcar use to the money you’re saving? And to make sure you use this money for the Zipcar, commit to giving whatever’s left in that account at the end of the year to a charity you hate.

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Dear Dan,

A few weeks ago you told us that in romantic encounters, the heart grows fonder when we know less about a potential mate. Does it also work for job applicants? Do we like people more when they’re hired from the outside rather than from within?

—John

Plenty of lessons from romantic love apply to the rest of our lives, and you’re correct that this is one of them. There’s some evidence showing that CEOs hired from the outside get paid more than those from the inside and that they don’t do as well. I suspect that the reason for this is the same heightened expectations that come with lack of knowledge. The question, of course, is how to combat our natural tendency to be overly optimistic about people we don’t know very well—both romantically and professionally.

 

See the original article in the Wall Street Journal here.

Ask Ariely: On Moving, Eating and Decision Making

November 24, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

My son has been in New York since he was 18, when he started attending The Cooper Union as an art student. Now he is 35 and afraid to leave NYC to move West. He hasn’t made the moves he would need to further his career in photography. He has had many successes—but not financial ones. We’ve offered him time here on the West Coast to develop his art (and hopefully a career). He doesn’t like living in NYC and says he would love to move west, but people in New York seem to believe that it is the only place to get a job. Is there any advice or constructive approach you can offer to make his options clearer?

Barbara

First, it’s delightful that you want your son to move closer to you rather than stay on the other coast, and I am sure that he feels the same.

I suspect your son is suffering from two decision biases. One, the status quo bias, has to do with our tendency to take our current situation as our reference point and to see any change as negative (or at least difficult) and with a high potential for regret. The second, the unchangeability bias, is the idea that when we face large decisions that seem to be immutable (getting married, having kids, moving to a distant place), the permanence of these decisions makes them seem even larger and more frightening. With these two biases combined, it’s only natural that your son is apprehensive about moving West.

Now, if you frame the move as “a trial for just a few months,” this would change your son’s status quo (he would still think of himself as a New Yorker, only temporarily trying out the West Coast), and it wouldn’t seem like a decision that’s so tough to change. Over time, he’ll most likely start feeling at home, get used to the new status quo, and not want to return to New York.

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Hi Dan,

Let’s say you’re very hungry and you plan to eat two sandwiches. One is very delicious and the other isn’t as good. Which one should you eat first?

—Pablo

One of my college friends had kids many years before anyone else in our group was even considering children, and he used to give the following advice (mostly unsolicited): “Think,” he used to say, “about how you like to eat. There are some people who like to eat reasonable food three times daily, while others would prefer to save their money and eat mediocre food most of the time but occasionally have an amazing meal.

“If you’re one of the second type, go ahead and have kids, because life with kids isn’t all that fun for the most part, but from time to time they bring incredible joy. And if you identify with the first type, you may want to rethink the kids idea.”

Now, I am not sure that this metaphor bodes well for kids, but in terms of food it certainly works. As a thought experiment, it asks whether you prefer to focus on the maximum amount of pleasure in any given experience or the average pleasure.

In the first case, you should eat the better sandwich first so that the height of your initial joy comes from the combination of your hunger and the superior quality of the sandwich. (As Cervantes wrote in “Don Quixote,” “Hunger is the best sauce in the world.”) Of course, you will sacrifice pleasure at the end of your experience. On the other hand, if you’re aiming for a consistent experience, eat the so-so sandwich first. With this method, the initial joy will be lower, but the end of the experience won’t be as much of a contrast.

Personally, I prefer to focus on the most joyful part of the experience and eat the best sandwich first, ignoring folk wisdom to “save the best for last.” Plus, this way I might be less hungry by the time I get to the so-so sandwich and may eat a bit less.

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Dear Dan,

Given all your research on decision making, do you now find yourself making better decisions?

 —Oded

Maybe, possibly, sometimes. I suspect that my gut intuition hasn’t improved much with my knowledge about bad decision-making. On the other hand, when I get to carefully consider my decisions, I think I’m able to avoid some of the decision traps that I study. I should also point out that much of my research starts with observations of my own irrationalities—so, without my own mistakes, I might have to look for a different career.

See the original article in the Wall Street Journal here.

Ask Ariely: On Lyrics, Joint Accounts, and Dialing Mom

November 10, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

The Korean music video “Gangnam Style” by the pop singer PSY has now been viewed on YouTube over a half billion times. Why do you think this video has become so popular? Most viewers don’t understand what PSY is singing about in Korean, yet they seem to love the video anyway.

I wonder if this is partially because the words are in a foreign language that they don’t have a clue about. It’s the same in my country, Kazakhstan. Although Kazakhstanis usually do not get the content of what they are listening to, they love American pop music and (these days) Korean pop. The closest parallel I can think of is when a woman wearing a miniskirt generates more curiosity than a woman who’s fully undressed.

Recently, PSY announced that his next debut will be in English. Would this be a mistake?

-Nurdaulet

A few years ago, Mike Norton, Jeana Frost and I looked at the question of ambiguity and found exactly the mechanism you’re suggesting—that knowing less can lead to higher liking. Focusing on online dating, we found that when people read online profiles of potential partners that were more ambiguous and imprecise, they liked the profiles more. That’s because when we face new information we try to resolve ambiguity, but rather than do it accurately, we let our minds fill in the gaps in an overly optimistic way. Sadly, we eventually meet the person behind the dating profile, and then our expectations get crushed (which, by the way, happens a bit more to women).

I just tried to understand the PSY phenomenon for myself (in an admittedly unscientific way) by watching 10 YouTube clips of popular songs (in English) without paying much attention to the words. Then I read each lyric carefully, twice. What I found is that the quality of the lyrics was surprisingly low, and this cut down on my appreciation of the videos, which I’d initially enjoyed.

What this suggests is that it might be good for the musicians to get people not to pay attention to the lyrics—maybe by creating very hectic music videos or by singing in a different language, or both. So if I were PSY, I’d switch to a language that almost no one understands—maybe Yiddish.

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Dear Dan,

I recently got married, and my wife and I have been debating the topic of bank accounts. She’d like to combine them, because she wants to know how much is coming in and going out. I think separate accounts would be simpler for taxes, personal spending and budgeting. What’s your take?

-Jonathan

The fact that you’re wondering whether to follow your preferences or your wife’s tells me that you are either a slow learner or very recently married (sorry, my Jewish heritage would not let me pass up that opportunity). But to the point: I think you should have a joint account.

First, there’s no question that in reality your accounts are joint in the sense that anything one of you does has an effect on your mutual financial future. For example, if one of you starts buying expensive cars from your individual account, there’s going to be less money for both of you to spend later on vacations, medical bills and so on.

More important, by getting married you have created a social contract of the form: “I will take care of you, and you will take care of me.” Adding a layer of financial negotiations to this intricate relationship can easily backfire. Think about what would happen if there was “my money” and “your money”? Would you start splitting the bill in restaurants? What if one of you has an extra glass of wine? And what if your wife ran out of “her money”? Would you tell her that if she does the dishes and takes the garbage out for a week, you would give her some of “your money”?

The problem is that once money becomes intertwined with deep relationships, they can start looking a bit more like prostitution than like love, romance and long-term caring. Separate bank accounts do have some advantages, but having them could put unnecessary stress on your relationship—and your relationship is much more important than managing your money efficiently.

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Dear Dan,

My son travels a lot and as a consequence we don’t talk much. Can you suggest a way that I can talk to him more frequently?

-Yoram

I suspect that your son has a busy life and that his lack of calling does not reflect his love or caring for you. This said, maybe you can pick a regular day and time to talk, and this will make your conversations more likely. And I promise to call you and mom the moment I get back from South America.

Love, Dan

See the original article in the Wall Street Journal here.

Ask Ariely: On Planning Ahead, Halloween Rationing, and Flipping Coins

October 27, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

I’m shopping for several plane tickets for personal trips over the next couple of months, and I keep running into the same problem: “Current me” wants to pinch pennies by choosing overnight flights, routes with several legs or inconvenient airports that would require me to drive a few hours out of my way. “Future me”—the one that actually has to pick up the rental car at 11 p.m. and drive two hours from Phoenix to Tucson the night before a friend’s wedding—sometimes resents that I wouldn’t just spend an extra $100 to make an already expensive trip more pleasant. Travel-booking websites are getting better and better at predicting what will happen to flight prices, but I don’t seem to have gotten any better at predicting my own preferences.

How can I best determine whether these savings will feel worth it to me in the future? Or, failing that, how can I console myself when I’m pulling into a Tucson motel parking lot at 1 a.m.?

—Ruth

Your framing of the problem is spot on. In your current “cold” state, you focus on the price, which is clear and vivid and easy for you to think about. When you actually take the trip, that version of you will be feeling exhaustion and need for sleep (a “hot” state), which will be very apparent to you at that point—but it is not as vivid right now.

This, by the way, is a common problem that arises every time we make decisions in one state of mind about consumption that will take place in a different state of mind.

Here is what I recommend. In order to make a better decision, tonight at 9 p.m. put in some laundry and spend the next two hours sitting on the washer and dryer (this is to simulate the fun of flight, and if you want to really go all out, supply yourself with a package of peanuts and a ginger ale). When you “land” at 11 p.m., look around for some missing socks (to simulate looking for your luggage) and then, properly conditioned to think about the actual trip, log into the travel website and see what is more important to you: saving a few bucks or getting to bed sooner.

Plus, imagine how you would look in the wedding pictures after a long night of uncomfortable traveling.

Good luck in your decision and “mazel tov” to your friend.

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Dear Dan,

I was wondering how you allocate candy during Halloween to make sure kids don’t dishonestly take more than they should. I’ve thought of handing each of the children their candy, but that way the kids can’t pick what candies they like best. Also, this method takes more time, which I don’t have, and makes things less pleasant for me.

But if I leave a bowl of candy out without any oversight, I know what will happen: They’re all going to take more than their share until the bowl is empty.

—Mary

Beyond Halloween, this is a general question about honesty. One of the things we find in experiments on honesty is that if people pledge that they will be honest, they will be—and this is the case even if the pledge is nonbinding (or what is called “cheap talk”).

Given these results, I would set up a table with a large sign reading “I promise to take only one piece of candy [or whatever amount you want them to take] so that there is enough left for all the other trick-or-treaters.” Below the sign, place a sheet of paper for your visitors to write down their names (and, given that it is Halloween, use red paint and ask them to sign in “blood”). With this promise to take only one candy, the public signature in blood and the realization that if they take more candy they will deprive their friends of having any, I suspect that honesty will improve dramatically.

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Dear Dan,

Do you have general advice for how to approach difficult decisions? I’ve been thinking about which car to get for a very, very long time, and I just can’t decide.

—John

The poet Piet Hein gave this sage advice some time ago, and I think it will work in your case:

“Whenever you’re called on to make up your mind

And you’re hampered by not having any,

the best way to solve the dilemma, you’ll find,

is simply by spinning a penny.

No—not so that chance shall decide the affair

while you’re passively standing there moping;

but the moment the penny is up in the air,

you suddenly know what you’re hoping.”

See the original article in the Wall Street Journal here.

Ask Ariely: On Nicknames, the Stock Market, and Justifying Dishonesty

October 13, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

My sweetheart often calls me by a term of endearment which, though flattering, is one that his ex-girlfriend called him during the four years they were together. The floweriness of the term does not fit his personality or mine (it’s sort of Shakespearean and we’re nerds), and every time he says it I think of her, though I appreciate his sweet intentions and hold no ill will against her. Is there an inoffensive way to bring this up and get a new “nickname” that feels more personal? I kept hoping it would go away by itself, but we’ve been together for five years and are now engaged. Help!

—Signed,

“Not Guinevere”

 

What your sweetheart is doing, of course, is connecting a term with positive associations for him to someone he loves—you. It would be nice if you could accept this for what it is, but judging by your letter, I don’t think that this is in the cards.

So now we have to think about how to eradicate his habit. One approach is to give him a negative punishment (a light punch on the shoulder, a sad look, etc.) every time that he uses this unfortunate term and to use a positive reward (a quick neck rub, a compliment) every time that he uses other terms of endearment. This approach would probably work, but I would recommend even more a variant of it that the psychologist B.F. Skinner called random schedules of reinforcement.

The basic idea is to alternate unexpectedly among ignoring this term of endearment, giving him a slight positive feedback for using it and responding from time to time with a dramatic negative punishment (a strong punch on the shoulder, hysterical crying, etc.).

Not knowing what to expect, coupled with the potential for a large negative response, would substantially increase his fear and would make even thinking about this nickname a negative experience for him. Good luck, and keep me posted on your progress.

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Dear Dan,

How can I control myself when I feel the irresistible need to break my own rules about how to invest in the stock market?

—Ganapathy

You are asking, I suspect, about what we call the “hot-cold-empathy gap,” where we say to ourselves: “The level of risk that I want to take is bounded on one side by gains of up to 15% and on the other by losses up to 10%.” But then we lose 5% of our money, we panic and sell everything. When we look at such cases, we usually think that the colder voice in our head (the one that set up the initial risk level and portfolio choice) is the correct one and the voice that panics while reacting to short-term market fluctuations is the one causing us to stray.

From this perspective, you can think about two types of solutions: The first is to get the “cold” side of yourself to set up your investment in such a way that it will be hard for your emotional self to undo it in the heat of the moment. For example, you can ask your financial adviser to prevent you from making any changes unless you have slept on them for 72 hours. Or you can set up your investments so that you and your significant other will have to sign for any change. Alternatively, you can try to not even awake your emotional self, perhaps by not looking at your portfolio very often or by asking your significant other (or your financial adviser) to alert you only if your portfolio has lost more than the amount that you indicated you are willing to lose.

Whatever you do, I think it’s clear that the freedom to do whatever we want and change our minds at any point is the shortest path to bad decisions. While limits on our freedom go against our ideology, they are sometimes the best way to guarantee that we will stay on the long-term path we intend.

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Dear Dan,

In your most recent book, you argue that most people are capable of dishonesty. Are you worried that people will use this as a justification for dishonest behavior?

—Joe

A colleague told me that a student at her university was doing just that. During a trial dealing with an honor-code violation, the student in question brought my book to the honor court and argued that “everyone cheats a bit,” so he should not be judged harshly.

The honor court was more annoyed than impressed with his argument, and they pointed out to him that if everyone cheats, maybe this suggests that extra harsh and public punishments should be used to make it clear that such behavior is outside the norms of the acceptable and will not be tolerated.

See the original article in the Wall Street Journal.

Ask Ariely: On Sports, Giving, and Convenient Accounting

September 29, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.

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Dear Dan,

I am an avid football fan. When the team I am supporting is leading by, say, seven points, it doesn’t seem like a lot (we are leading by JUST one touchdown). On the other hand, when we are trailing by seven points, it seems like a lot (we are trailing by ONE touchdown). The same thing happens with runs in baseball and points in basketball. As a result, I’m always nervous while watching close games! Why do I feel this way? Is it just me?

—Jaydeep

I must admit that I don’t follow sports, but as luck would have it, I recently had a chat with Mark Cuban, the owner of the Dallas Mavericks. We talked about various links between behavioral science and basketball, including the idea of loss aversion. Loss aversion means that our emotional reaction to a loss is about twice as intense as our joy at a comparable gain: Finding $100 feels pretty good, whereas losing $100 is absolutely miserable.

When your team is ahead, you think that the game is yours, so you largely focus on dreading that it might be taken away from you. On the other hand, when you are behind, all you can do is look forward to a positive change in the lead.

As this suggests, we might benefit in other areas of life, beyond sports, by adopting the perspective of being behind and looking for the upside.

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Dear Dan,

Several years ago I gave my 90-year-old mother $5,000 to pay off the bank loan for her 2007 Honda Civic. She recently decided she didn’t want to drive anymore and would sell the car, for which she should receive $6,000 to $8,000. She had originally planned to give the car to my nephew (her grandson), but since he can’t afford the upkeep, she was going to sell the car and give him the proceeds. My finances have improved significantly since the time I gave her the $5,000, but she also offered to give me back $5,000 from the sale, which would leave my nephew with very little money. What should I do?

—Anastasia 

When we face such questions, we usually engage in what is called a cross-personal utility comparison. We ask ourselves how much we would benefit from this amount of money and compare this to how much the other person (your nephew, in this case) would benefit. When we carry out this comparison we naturally have a somewhat egocentric view of the world, which means that we usually over-weigh our own benefits and under-weigh the benefits of the other person.

However, recent research by Elizabeth Dunn and Mike Norton (their forthcoming book is called “Happy Money: The Science of Smarter Spending”) shows that giving money away has tremendous benefits for the giver. In their studies, whether people buy a cup of coffee for a friend or give up their yearly bonus to help a nonprofit, the givers experience happiness beyond their expectations, and it remains high for longer than they anticipate.

In your case, the giving would be particularly powerful because both you and your mother are involved. You would feel happiness because you facilitated the gift, your mother would feel happy because she is helping her grandson, and you would feel further happiness for making your mother feel good. With all of this good feeling around, is there any doubt that you should help your nephew?

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Dear Dan,

I just paid for yoga classes for the next six months, but the studio mistakenly credited me for a year. They have made many past billing errors in their favor. Should I correct the mistake or just see it as the universe making things more even?

—Random fan

Of course, it is the world restoring karma—but why did it take so long?

See the original article in the Wall Street Journal here.

Ask Ariely: On Nighttime Activities, Alibis, and Political Dishonesty

September 16, 2012 BY danariely

Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to askariely@wsj.com

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Dear Dan,

My husband and I are childless. We’ve lived in the same house in the same town for 17 years. Each day he comes home and says, “What do you want to do tonight?” I think we’ve tried every restaurant in a five-mile radius. Neither of us enjoys shopping or watching movies at a theater. His hobby is aviation, and I don’t fly. I work from home and would love to go somewhere in the evening occasionally, but we usually end up watching TV. And we don’t even like TV! Can you shed some light on this problem?

—Charleen

The basic challenge you are facing is what economists would call a problem of coordination, where both you and your husband have to agree on a course of action. This is no easy thing to do when your preferences don’t align. On top of that, you have the suboptimal default option of watching TV—something that neither of you enjoys but is a simple resolution to your coordination problem.

One approach is to switch from a simultaneous coordination issue to a sequential one—that is, agree up front on a plan that will make only one of you happy on a given night but, ultimately, will let both of you do more things you enjoy. On a set of cards, write down activities that each of you wants to do, mix the cards and draw one card every evening to pick that night’s activity. This approach should lead to higher enjoyment overall. After all, it’s better to have some enjoyment on some nights of the week than to have no joy on every night.

Here’s one final suggestion: Add a few wild cards into the mix (singing, poetry, pottery, volunteering, square dancing, etc.), activities that you aren’t sure you will like (or even things you suspect you will dislike), and you both might just find some new activities that you enjoy.

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Dear Dan,

I recently stumbled upon a website offering customers help with creating alibis—and even manufacturing corroborating “evidence” for their absences (for example, to reassure your wife when you were really with your mistress). Other sites offer married people help finding paramours for extramarital affairs. Do you think these sites are increasing dishonesty?

—Joe

The basic answer to your question: Yes. I think that these websites do increase dishonesty.

Many of these websites are constructed to look like any basic service provider. In one case, there are pictures of smiling people with headsets, waiting to fill your order, and tabs for services ranging from producing and sending fake airline tickets, to impersonating hotel reception. The testimonials are positive and very general. And the slogan—”Empowering Real People in a Real World!”—is downright uplifting, until you realize that by “empowering” people, they mean lying on their behalf.

I suspect that all these trappings help people to rationalize their actions as socially acceptable. And with all the testimonials from so many regular people, why not you?

I also think that the “real world” rhetoric may further lull people’s objections; the idea is that this is how things work in the real world, not a fairy-tale land of perfect honesty.

For my part, I’m left feeling a little worried about what kinds of ads might pop up in my browser after looking at this page…

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Dear Dan,

Is there any correlation between political party affiliation and whether someone is more or less honest?

—Karen

Of course. The politicians you and I support are much more honest. You can’t even compare them to the crooks on the other side of the aisle. How can they even say those things with a straight face?

See the original article in the Wall Street Journal here.

Ask Ariely: On Splitting Checks, Vacations, and the Internet

August 31, 2012 BY danariely

Here’s my column from the WSJ this week — and if you have any questions for me, just email them to askariely@wsj.com

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Dear Dan,

In your answer last week about splitting checks at restaurants, you noted that there is a “diminishing sensitivity as the amount of money paid increases.” I’ve noticed this in my own spending. I’ll go out of my way to save a buck and then spend an ungodly sum on some purse. Why is that? And how can I control it?

—Lembry

Diminishing sensitivity is a very basic way that our minds work across many domains of life. For example, imagine that you light up one candle in the middle of the night. This small amount of light will dramatically change your ability to see your surroundings. But what if you already have 10 lit candles and you add one more? Now it would not have much of an effect. The basic idea of diminished sensitivity is that our minds tend to register relative increase; we take any additional amount of stuff as if it were a percentage gain, not an absolute one.

Now, when it comes to money, we should think about it in absolute terms ($10 is $10 regardless of whether we are saving it from a dinner bill or from the price of a new car), but we don’t. We think about money in terms of percentages, too.

What can we do about it? It’s not easy, but we should try to fight this natural tendency. One method that I use from time to time is to take the amount of money that I am thinking about spending and ask myself what else I could get with it. For example, since I like going to the movies (and let’s say that the price of two tickets and popcorn is $25), I ask myself whether a given $25 of spending on a prospective purchase is worth more or less than the pleasure of going to the movies.

When framed this way, it doesn’t matter if the savings come from a dinner bill or a new computer—and it helps me to ask the question “What would I enjoy more?” in a more concrete way. So, the next time you are shopping for a new purse, try to measure its price in terms of another use for that money that you might value more.

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Dear Dan,

I have been on vacation for the last few days in New York City, and while reading your most recent book, on dishonesty, I have been wondering whether people behave more or less honestly on vacation.

—Julie

This is an interesting question, and (sadly) I don’t have any data to share with you on this topic. But here are a few ideas to consider:

Why might people on vacation be more honest? While on vacation people seem to be more relaxed with spending money, which suggests that the motivation to be dishonest for financial gain might be lower. On top of that, people on vacation are more often in a good mood, which they might not want to spoil by behaving badly.

Why might people on vacation be less honest? On vacation, the actions we take are in a new context. As they say, “What happens in Vegas stays in Vegas.” Also, the rules on vacation might seem less clear: What are the regulations for parking in San Francisco? How much should you tip in Portugal? Is it OK to take the towels from this hotel? This sort of wishful blindness can make it easier for us to misbehave while still thinking of ourselves as generally wonderful, honest people.

On balance, then, are vacationers more or less honest? I suspect that they are less honest—but I would love to be proven wrong.

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Dear Dan,

What is it about Internet communication—Facebook, Twitter, email—that seems to make people descend to the lowest common denominator?

—James

It’s easy to blame the Internet, but I think we see such behavior mostly because people generally gravitate toward trafficking in trivialities. Consider your own daily interactions. How much is witty repartee—and how much is the verbal equivalent of cat pictures? The Internet just makes it easier to see how boring our ordinary interactions are.

See the original article right here.

Ask Ariely: On Parking, Paying, and Putting

August 18, 2012 BY danariely

Here’s my column from the WSJ this week — and if you have any questions for me, just email them to askariely@wsj.com

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Dear Dan,

What should I do about parking? I have trouble deciding whether I should go for a paid parking lot straight away or drive around in the hope of finding free parking—but at the risk of wasting time.

—Cheri

This is a question about the value of your time. You need to figure out how much money an hour of fun out of the house is worth to you and compare that cost with the time it takes to find a parking spot. For example, if an hour out of the house is worth $25 to you, and searching for parking takes 30 minutes on average, then any amount less than $12.50 that the parking lot charges you is worth it. As the number of people in your car rises, the value of parking quickly also rises because the waste of time and reduction of value accumulate across all the people in your group.

Another computational approach is to compare the misery you feel from paying for parking with the misery you feel while seeking a spot. If the misery from payment isn’t as great as the unhappiness from your wasted time, you should go for the parking lot. But if you do this, you shouldn’t ignore the potential misery you would feel if you paid for parking and then found a free spot just outside your destination. Personally, the thought of time wasted is so unbearable to me that I usually opt for paid parking.

Yet another approach is to put all the money that you intend to spend on going out in an envelope in advance. As you’re on the way to the restaurant or movie theater, decide whether that money would be better spent on parking or other goods. Is it worth it to forgo that extra-large popcorn if paying for parking will get you to the theater on time? That makes the comparison clearer between what you get (quick parking and more time out) and what you give up.

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Dear Dan,

When going to dinner with friends, what is the best way to split the bill?

—William

There are basically three ways to split the bill. The first is for everyone to pay for what they’ve had, which in my experience ends the meal on a particularly low point. Every person has to become an accountant. Given the importance of endings in how we frame our memories of experiences, this is a particularly bad approach. Rather than remembering how delicious the crème brûlée was, you may be more likely to remember that Suzie ate most of it even though you paid for half.

The second approach is to share the bill equally, which works well when people eat (more or less) the same amount.

The third approach, my favorite, is to have one person pay for everyone and to alternate the designated payer with each meal. If you go out to eat with a group relatively regularly, it winds up being a much better solution. Why? (A) Getting a free meal is a special feeling. (B) The person paying for everyone does not suffer as much as his or her friends would if they paid individually. And (C) the person buying may even benefit from the joy of giving.

Let’s take the example of two friends, Jaden and Luca, who are going out to their favorite Middle Eastern restaurant. If they were to divide the cost of the meal evenly, each would feel, say, 10 units of misery. But if Jaden pays, Luca would have zero units of misery and the joy of a free meal. Because of diminishing sensitivity as the amount of money paid increases, Jaden would suffer fewer than 20 units of misery—maybe 15 units. On top of that, he might even get a boost in happiness from getting to buy his dear friend a meal.

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Dear Dan,

I play in a weekly nine-hole golf league. There’s one individual who constantly talks on his cellphone, moves around while others are putting and mostly ignores the courtesies of golf. He’s been asked to stop this behavior but continues with a bully attitude. How do I handle it?

—Wally K.

Though you might be tempted to rip the phone from his hands, throw it on the ground and bash it with your 9-iron, I would suggest another solution.

You could implement a new rule, whereby everyone else playing with you earns a mulligan (a “do over” shot) each time the bully talks on the phone. Getting constant negative feedback (in addition to giving everyone a performance boost) would probably whip him into shape. Just be sure to take the mulligans consistently, every time he’s on the phone, so that his behavior is reliably punished and the message sticks.

See the original article here.