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Like 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,
Ratings systems for different services often aren’t driven by incentives. One example: Instead of just rating Uber and Lyft drivers after they drop us off, what if their ratings were based on the size of the tips they got? In such a system, drivers who consistently received larger tips would get higher ratings; those who were penalized would be seen less favorably. Wouldn’t this be better than the current rating system?
—Ruoxi
Would you really give a bad tip to an annoying driver who had just dropped you off at home and knows where you live? (I am partially joking here, but I do wonder whether tips for taxis are higher when people are coming back home.)
Like other pay-for-performance approaches, your proposal for a tip-based ratings system would raise a lot of problems. First, discretionary payments such as tips reflect satisfaction, but they also reflect wealth and price sensitivity. Basically, some people care less about money and are likely to give higher tips than more price-sensitive people. Since the wealth and the price sensitivity of the passenger aren’t a precise reflection of the quality of the driver, your suggestion would just replace one flawed system with another. A second, even more serious problem: Drivers would get an incentive to drive more in areas where people are less bothered by high prices, thereby providing worse service to other people who might need transportation more. Finally, what would stop drivers from giving cash back to passengers who gave them larger tips—returning some of the extra money but gaining reputation points in the process?
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Dear Dan,
Some time ago, I bought some bitcoins. In just a few months, their value increased by 1,000%. They’ve just kept rising and are now about 4,000% higher than when I originally purchased them. My original investment is now worth more than $100,000—a substantial amount of money for me. Should I sell or hold onto them and hope for further increases?
—Geoff
It is hard for me to say whether this is a good investment or not, but here’s a more rational perspective for examining the question: Simply ask yourself if you would buy these bitcoins now, at their current price. If your answer is yes, you should hold onto your investment and maybe even buy more. But if your answer is no, it means that you don’t really think that the expected increase in value is worth the risk, and you should sell.
The more general point here is that our investment decisions should be about what we think the future will hold (hard as that is to predict), and we need to work hard to overcome the influences of our past actions. No matter what you purchased a given investment for, and regardless of what it is worth now, you should make your decisions only about where you think this investment is headed.
One last piece of advice: If you do decide to sell your bitcoins, don’t look up their value afterward. Yes, if the value drops, you’d be a bit happier that you sold, but if the value rose, your misery would be much higher—so resist the urge to check.
See the original article in the Wall Street Journal here.
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 organizing a long weekend of skiing with 10 friends who have very different financial situations. I’d like everyone to be able to pay what that they’re comfortable with, and I also want to avoid creating an awkward social dynamic. I considered charging everyone a low base amount and then asking the wealthier friends to pay extra, but that doesn’t seem quite right. What’s the best way to divide up the cost?
—Zach
Dear Dan,
Why do I still listen to the radio and watch live TV when I have access to all the same content from different streaming services, which lets me skip what I don’t like and more easily change my experience?
—Colin
One possibility is that you are listening to the radio and watching live TV because you don’t want to have the ability to switch. When you just experience something that cannot be changed, you are more likely to get into the flow and fully enjoy it. By contrast, when you are continuously monitoring the experience and asking yourself how happy you are, it can be exhausting, ultimately taking away from the sense of immersion. Sometimes the freedom to choose among options isn’t a recipe for happiness.
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Dear Dan,
I recently experienced some turbulent emotional times, and I realized that I was eating a lot of chocolate and gaining weight. I am now wondering if chocolate really has mood-improving powers, as many people seem to think, or if I just gained weight for no good reason.
—Mia
Some research has found that chocolate can in fact boost your mood—perhaps due to compounds found in cocoa. Interestingly, women seem to be more likely than men to eat chocolate to try to boost their moods. That could mean that experiencing some heartbreak is a good diet for men but not for women.
See the original article in the Wall Street Journal here.
Dear friends,
For many of us, email is a source of joy and stress – we learn a lot from it, but we also never seem to be able to keep up with our inboxes. And in today’s world, it’s likely that we’ll be using email more and more. A project I’m working on right now is to try to better understand how we work with email, with the hope of figuring out what is broken and what we can do about it.
My first step is to research how we currently use email. If you’d like to help me by completing a 5-minute survey, please contact me at dan.ariely@gmail.com. Survey participants will not only receive my gratitude, but will also be entered for a chance to win any of my books, a 30-minute chat with me, or $500.
Irrationally yours,
Dan
Dear Dan,
I’m a physician, and it seems to me that people often stay in the hospital for too long. (One piece of evidence: Many more patients get discharged from the hospital on weekends.) Prolonged hospitalizations cost a lot of money and mean that beds aren’t available for people who need them. How can we change this?
—George
Think of three parties involved in decisions about staying an extra day in the hospital: the doctor, the patient and the family. All three would benefit from having patients discharged before the weekend: The doctors have fewer patients to deal with, the patients get to return to their loved ones, and the families can stay home rather than making one more hospital visit. Maybe we should try to make every day in the hospital feel like Friday.
Here’s a more concrete idea: Why not take one channel on the hospital’s internal TV system and dedicate it to people’s bills? The channel could present patients with real-time information about their bill, showing it rising with every meal, treatment and round of medication. It could also show the charges expected over the next 24 hours. My guess is that this change would spur people to leave the hospital much sooner.
Dear Dan,
How can we encourage people to eat less meat? Lots of people consider it cruel to kill animals and identify emotionally with vegetarians but still choose to eat pork, chicken and steak.
—Vered
Sadly, our choices—moral and otherwise—often aren’t the result of what we know but what we feel, and feelings have their quirks. In my field, there is something called the Identifiable Victim Effect, which shows that people can care deeply about a single, specific tragedy (such as the death of one Syrian refugee) yet care little about vast atrocities involving thousands or even millions of people (such as the Syrian crisis).
A similar principle applies to the ways we think about treating (and eating) animals. During a 2001 outbreak of foot-and-mouth disease in the U.K., the authorities had more than 2 million farm animals slaughtered near infected areas. It was tragic for the animals, the farmers and the British economy, but the decision didn’t produce much public complaint—until one day, when newspapers published front-page photos of a cute little calf in Devon that survived the killing. That picture spurred a public outcry against the wholesale slaughter and, according to the Associated Press, may have helped produce “a change of heart by the British government” that ultimately helped end the killing. The abstract concept of slaughtering legions of cows, pig and sheep did nothing, but the adorable face of one calf made people sad and drove them to take action: the Identifiable Victim Effect at work.
So your best bet may be to wait for the ideal opportunity for a pro-vegetarianism campaign, ideally involving one particularly cute animal.
Meanwhile, you could encourage people to read Jonathan Safran Foer’s “Eating Animals,” which describes in vivid detail the conditions in which the creatures we consume are forced to live and die. Reading it made it hard for me to even look at a burger without thinking about what happened to the cow that it came from.
Dear Dan,
What’s the best love note one could write?
—Peter
The ideal message would show confidence, deep desire, a capacity for romance and optimism about your shared future. With all these in mind, I’d suggest, “Would you give me the opportunity to sweep you off your feet?”
There is no question that email is one of the most important communication tools. It is also clear that it is a monster that is taking over our life and attention.
A few years ago in an attempt to reduce my own communication overload, we created Shortwhale (www.shortwhale.com), which asks the sender to classify the email before it reaches my inbox. Now, I am attempting to reduce email load and increase productivity further. Together with a fantastic team we created an email app (iPhone only at this point) that is aimed at helping people better manage their email-life and the related stress.
So far I have used an early version of the app for a few months and I find it very useful. We are now ready to open this app for a few more beta testers who are interested in helping us figure out ways to fight the email challenge.
Below is a short video of the email problem and our approach, as well as a way to sign up to test the app (link: http://newemailapp.com/).
If you are struggling with email and want to help us, please sign up – and thanks in advance .
Dan
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,
For some time now, I’ve been proposing different experiments at my company—experiments with the prices we charge, what we pay employees and the way we treat customers who call to complain. But the experimental approach that seems so successful for science bumps into substantial resistance within my company. Any ideas about how to make experiments more palatable in the business world?
—Darren
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Dear Dan,
I’m a philosophy professor, teaching metaphysics and philosophy of language. What’s the best policy for penalizing students who hand in coursework late, with an eye on preparing them for the world of work?
—Andrew
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Dear Dan,
I’m a server in a New York City restaurant in New York, and I want diners to trust my recommendations and leave me larger tips. Any advice?
—Robert
As soon as you hand them the menu, tell them that you strongly recommend they avoid the branzino special (or any other very expensive dish). By demonstrating that you’re willing to steer them away from a pricey entrée, they’re more likely to think that you truly care about them, trust your advice and tip you more.
See the original article in the Wall Street Journal here.
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 use Uber more and more these days, but I feel bad about using it when they slap on surge pricing rates, as they seem increasingly prone to do. Even with the surge rates, Uber is often cheaper than taxis—so why the mixed emotions?
—Wendy
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Dear Dan,
My partner and I make a reasonable income, and we’ve been able to save some money over the years. We can afford to move to a more expensive neighborhood, but we aren’t sure if this is the right way to spend our money. What do you say?
—Paul
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Dear Dan,
What’s the best way to improve the quality of marriages?
—Maayan
The No. 1 enemy of relationships is being taken for granted. So I would set up marriages to expire automatically every five years and be renewable only if both parties opt in for another five-year period. Sure, this setup would mean that more people separate (you asked about the quality of marriages, not their longevity). But spouses would have to think more carefully about their partners, take them less for granted and thereby strengthen their relationships.
See the original article in the Wall Street Journal here.
Did you make a New Year’s Resolution to get fit in 2016?
I want to help you keep it – I’ve partnered with the podcast Only Human on an exciting new project called Stick to It! My colleagues at the Duke Center for Advanced Hindsight and I have designed a study running through the end of February that uses your smartphone to implement different approaches to get you exercising more and hopefully enjoy it. To sign up for the study, click here.