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  • feedwordpress 12:30:56 on 2017-12-09 Permalink
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    Ask Ariely: On Mug Matters, Smoking Stoppers, and Pregnancy Preferences 

    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,

    In the kitchen at work, my colleagues often leave piles of dishes and mugs in the sink, right in front of the sign asking everyone to clean up their things and put them away. How would you get more of my co-workers to deal with their own dirty dishes?

    —Rosie 

    Use transparency—that is, try to make it possible to tell exactly who’s following the clean-up rules and who isn’t. When we feel anonymous, it’s much easier to commit minor infractions like leaving a dirty cup or dish behind. Eliminating the anonymity would make your coworkers feel more accountable.

    At our lab at Duke, we had the same problem. As soon as there was a single dirty mug in our sink, people thought it was OK to add more. Soon the sink would be full. So we bought everyone a mug with his or her name on it and got rid of the old nameless mugs. Now it’s clear who the mug offenders are, and this solved the problem.

    I would suggest asking everyone to bring in personalized dishware. For those who don’t comply, get a permanent marker and write their names on the back of dishes. As long as people see that their less-than-desirable actions are evident to everyone else, the pile of dirty dishes won’t come back.

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    Dear Dan,

    Two cigarette manufacturers in the U.S. recently had to start airing TV and newspaper advertisements explaining the negative effects of smoking as well as the addictive properties of their products. Will these ads have any effect? It strikes me as a naively rationalistic approach of the “if people only knew, they would change their behavior” variety. This strategy has existed for decades—and it has not made a difference. Do you think that the new ads will actually reduce smoking?

    —Steve 

    I suspect that you are correct and that this is going to be a very costly, ineffective way to curb smoking. By now, it’s common knowledge that smoking causes cancer and other serious health problems—no one will be surprised by what’s in these ads. In general, information about health risks has done little to promote healthier behavior. Just think about the many ignored pleas to wash hands, to pay attention to calorie labels or to stop texting while driving.

    If it were up to me, I would try an emotional approach that focused on some immediate negative effects of smoking like body odor or yellow teeth. A more extreme approach, which uses moral outrage, would be to tell people that if they smoke they are simply slaves of the cigarette companies, the same ones that for years have deliberately and knowingly harmed their customers.

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    Dear Dan,

    My boyfriend doesn’t want to have children, but I do. What can I do?

    —Amy 

    There is an interesting psychological reflex called the endowment effect. Basically, once we become the owners of something, we start looking at it from a different perspective. In particular, we begin to look at what we own as more valuable. Here’s where your question comes in: The endowment effect would suggest that someone who has not been that excited about the idea of having children starts looking at them more favorably if he learns that he is the owner (father) of a child.

    So this weekend why don’t you ask your boyfriend to play a game called “spot the fake news.” Tell him a few things that are true and a few that are not, including the “news” that you are expecting. Before you end the game and reveal the truth, have another discussion about having children—and see if the new perspective gets him to see things differently. Good luck.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 12:30:10 on 2017-11-25 Permalink
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    Ask Ariely: On Ticket Troubles, Business Bonds, and Aging Attitudes 

    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,

    Last week I went to a website to buy a ticket for a talk you were giving. When I saw that the ticket was $28 and that they charged an additional $7.50 processing fee, I balked. I ended up not going to see you. Ironically, I probably would have just bought the ticket if the original price had been $35.50. Would you call this rational behavior?

    —Terry 

    It’s irrational, for sure. Rationally, you should care only about the total price of the ticket—additional fees included. It should be irrelevant whether the charge is 100% for the ticket itself or partly for the ticket and partly for processing the transaction.

    But, of course, we are not rational. The small outrage you experienced at the high processing fee is about perceived fairness, and it is very human. That $7.50 processing fee is more than 25% of the price of the ticket. If that same fee were slapped onto a $1,000 airline ticket, you probably would not give it a second thought.

    Ticket sellers should recognize that this pricing strategy is clumsy and not in their best interests. They would do themselves a big favor simply by bundling the processing fee into the face price of the ticket. Then, next time, you might show up to hear me talk!

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    Dear Dan,

    In my job I meet lots of new people all the time, and I’d like to build trusting relationships with them as I advance in my career. What’s the best way in business to foster trust with others?

    —Kayla 

    One key strategy is to show that, even though you’re doing business, you care about the other person’s interests—even at a cost to yourself.

    Imagine that you’re at a restaurant and order a pricey fish entree. One waiter tells you that the dish is sold out and suggests that you instead try the chicken, which is just as tasty and is also less expensive. A different waiter, by contrast, directs you to the caviar dish—which, you learn, is three times more expensive.

    You will certainly put more trust in the first waiter than in the second one. The first has shown that he’s willing to accept a smaller tip (for a less expensive entree) because he wants you to have an enjoyable experience. And the next time you’re in the restaurant, you will ask for him. The best way to build trust is to show people that you have their best interests in mind.

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    Dear Dan,

    As I’ve aged, it seems to me that the people around me have become kinder and more thoughtful—and, in response to them, I’ve become more liberal and compassionate. What drives this change?

    —Pete 

    I’m not sure what explains your increased compassion, but it’s very much to your credit. I’ve seen the same thing with my aging father: He’s become a lot kinder. I could suggest that long experience breeds wisdom and appreciation, but another explanation keeps nagging at me.

    Maybe it’s about hearing loss? Perhaps when we can’t hear everything people are saying, we fill in the gaps in an over-optimistic way and end up attributing more positive attributes to the person on the other side of the discussion.

    Then again, I know plenty of other people who have gotten crankier as they have grown older—and perhaps that is related to hearing loss, too.

    See the original article in the Wall Street Journal.


     
  • feedwordpress 12:30:21 on 2017-11-11 Permalink
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    Ask Ariely: On Opposing Opinions, Feeling Failures, and Adjusting Activities 

    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 learned about research showing that when people hold extreme beliefs, giving them data that contradicts their basic opinions actually strengthens those beliefs! Does this mean that there is no way to change the beliefs of people with extreme opinions?

    —Jordan 

    Changing people’s opinions is indeed difficult, but there is hope. With people who hold extreme views, one paradoxical finding is that presenting them with even more extreme arguments in support of their beliefs persuades them to moderate. In a paper published in Proceedings of the National Academy of Sciences in 2014, Boaz Hameiri and colleagues describe a citywide intervention in Israel where they used this approach in an ad campaign about the Israel-Palestine conflict. The ad campaign was designed to try to change the opinions of right-wing Israelis who oppose peace.

    The ads presented the participants with absurd claims about the benefits of the conflict—for example, that it’s good for camaraderie and morality and helps to create the unique culture of Israel. The results showed that the campaign changed minds: From what they said and how they reported voting, those with right-wing views became more conciliatory and cut back their support of aggressive policies, compared with residents of a comparable Israeli city without the ad campaign. The researchers hypothesize that the intervention succeeded because the ads caused people to more deeply consider their own beliefs.

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    Hey, Dan!

    Why do we believe we can learn from our own mistakes but blame other people’s failure on their personalities and/or lack of sufficient skills? Has this “one-way street” phenomenon been studied?

    —Darin 

    You are describing behavior that falls under the heading of what social psychologists call the “fundamental attribution error.” In general, we tend to see good things that happen to us as the product of our own doing and bad things as the result of outside circumstances. Conversely, we tend to attribute good things that happen to other people to external circumstances and bad things to their own doing.

    We believe that we can learn from our own mistakes because those mistakes aren’t really about us. We think they involve external circumstances that we can learn to handle better.

    Can we learn to override this type of judgment? I spent a lot of time in Silicon Valley recently, meeting with executives of startups and venture capitalists. I was struck by what often happens when a startup fails: People in Silicon Valley approach the setback much less negatively than the rest of the world does. Executives sometimes even look at their colleagues’ failure in a positive way, as a sign of experience and learning.

    Can we generalize from Silicon Valley to the rest of the world? I’m not sure, but it seems to me that we can change the way we look at other people’s failures, and maybe even limit the blame we assign to them, as we would with our own failures.

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    Hi, Dan.

    Let’s say that your regular activities include things like playing poker with friends every week or gardening every weekend. How do you decide when to keep on going with these activities—or stop and try something new?

    —Joanne 

    Questioning the value of our routines is good, because it can help us to stop doing things we no longer enjoy. It’s bad, however, because such questioning gets in the way of whatever happiness the activity gives us. So I suggest that you question yourself—but only for a short time. Perhaps take the last week of December to evaluate how much pleasure you get from your leisure activities—and consider what you could do instead.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 11:30:43 on 2017-10-28 Permalink
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    Ask Ariely: On Creating Commitments, Simulating Stressors, and Tempting Turnips 

    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.

    ___________________________________________________

    Dear Dan,

    I was recently at a very good lecture about global warming, and by the end of the lecture I was highly motivated to make real changes in my life and have a more positive impact on the environment. Two months later, I realized that despite my good intentions, I had done very little to change anything about my behavior. Why is it so difficult for me to take any action?

    —Rachel 

    This is very human and common. There are many cases in which we feel we should take particular actions, but then we don’t—such as exercising, eating healthy, washing your hands, practicing safe sex or texting while driving. I think that getting people to care about the environment is perhaps one of the toughest behavioral challenges we have. In some ways, it’s as if the issue were perfectly designed to maximize human apathy: The consequences are probabilistic and somewhere in the far future, and anything we can do is just a drop in the bucket. In short, all the elements that create human apathy are rolled into one challenge.

    So how can you make sure that you’re acting on your beliefs? Come up with very specific rules (change the setting of your thermostat, eat less meat, etc.), write them down, tell other people that you have committed to them, and then try to follow them.

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    Dear Dan,

    As an oral surgeon, I encounter patients in pain (or anxious about possible pain) every day. I have a solution for many of them: intravenous sedation! Unfortunately, the cost (about $600) deters many patients and they prefer to suffer to avoid the payment. Do you have any advice about how best to guide patients who would benefit from IV sedation to pick it instead of suffering?

    —Andrew 

    Helping people figure out how they’ll feel in a future state, especially one that they’ve never experienced, is tricky. I would suggest that you try to create a comparison between the pain of the surgery and another type of pain. Suggest that your patients put their hands in a bucket with ice for three minutes (which is very painful), and when they are experiencing this pain, say: “Here is what surgery would most likely feel like without the IV sedation. The only difference is that the surgery will take about an hour. Would you rather pay for the IV sedation or do the surgery without it?” Now, the patients can make a more informed decision, and my guess is that many more will pick the IV sedation.

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    Dear Dan,

    I notice that at farmers markets, I am generally less worried about price and tend to spend more than I do in regular grocery stores. Does the presence of the crowd make me less concerned with the way I spend my money? I wonder if the same tendency is true for visitors to county fairs, flea markets, carnivals and other outdoor venues where lots of people gather in a temporary mini-community. Or is something else entirely going on in this context?

    —Paul 

    My guess is that it is the result of excitement, but the excitement is not with the crowd but with scarcity—with having a small window of time to buy, say, locally grown kale or handmade stuff. The knowledge that this window of opportunity will soon close and that we will not have a way to get back to our beloved kale makes us want the product more—and get it without paying much attention to the price.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 11:30:35 on 2017-10-14 Permalink
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    Ask Ariely: On Avoiding Admonitions, Bestowing Beverages, and Reaching Readers 

    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.

    ___________________________________________________

    Dear Dan,

    I’ve read that gossip represents a huge proportion of people’s communication with each other. Why do you think gossip is so pervasive?

    —Shelly 

    The short answer is it’s titillating. But there is a deeper reason for why people dish about other people: It is society’s way of regulating behavior. We usually think negatively of gossip, but fear of being gossiped about can be beneficial.

    A 2012 study by Bianca Beersma and Gerben A. Van Kleef illustrated thisThey gave participants lottery tickets and told them to allocate as many as they wanted to themselves or to others. Everyone was told that the allocations would be made public to the rest of the group, while some were also told that the group had a high tendency to gossip. The latter set acted more charitably: They kept fewer tickets for themselves.

    While gossip isn’t fun for the person being talked about, it may be an effective way to keep each other in line.

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    Dear Dan,

    For 40-plus years I’ve given homemade Bloody Marys to friends over the holidays. Newer friends hear about them, so the list gets longer each year. I now make more than 60 one-liter bottles annually. I enjoy making them, but I’m sure that some recipients would prefer not to keep getting them. How can I separate those who really enjoy them from those who don’t?

    —Bill 

    Giving people an easy way out is helpful in matters like this. If you’re too direct—that is, if you ask people directly if they don’t want the gift—no one will want to hurt your feelings.

    Given this, instead of asking who doesn’t want it, ask who does. Send everyone an email asking them to contact you to stay on the Bloody Mary list. And if you want to further control the number of bottles you make, tell them that you can only make 20, meaning that if they don’t really want your Bloody Marys, they would be taking one from a friend who does.

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    Dear Dan,

    I’m starting a neighborhood book club, but I want to make sure that only the most committed individuals join. So I considered having the club meet a bit outside of our neighborhood, or early in the day on Saturday. Would these methods ensure that I will only get the most dedicated readers? 

    —Dylan 

    I faced a similar dilemma when I started teaching. I wanted to get only the most dedicated students, so I decided to hold the class at 8 a.m. My logic was that only the most motivated students would sign up for such an early class. Two weeks in, though, I realized I was wrong. About half of the students weren’t showing up; many others were sleeping in class.

    It turns out that my approach backfired: Instead of getting dedicated students, I got the ones who couldn’t wake up on time to register for classes that took place in a more reasonable hour.

    This general problem is what is called adverse selection, where the process causes the people who join to be the ones that we want the least. So, while you think that your approach will recruit the most dedicated readers, consider that your method may instead land you people who have no friends or nothing else to do on the weekend. If you go ahead with this, let me know how it worked out.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 11:30:24 on 2017-09-30 Permalink
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    Ask Ariely: On Better Brews, Money Management, and Flirting Forays 

    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.

    ___________________________________________________

    Dear Dan,

    I’m a fan of craft beers, and when I hear about an exciting new one, I’ll get a case or two and invite some fellow aficionados to share the experience. But as we crack open the new beer and sample it, I almost always find myself disappointed. Why does this happen so much?

    —Ben 

    Your latest beer may just not be that good, but I think something else is probably going on here: Your heightened expectations are working against you. Raised hopes can influence the way that we experience something, for good or ill, depending on the gap between expectation and reality.

    Imagine, for example, that the new beer you just bought measures an objective eight on a beer connoisseur’s 10-point scale. It’s a good beer, but not an amazing one.

    If you had been hoping that your new brew would be a nine, your expectations can “pull up” the way that you experience the beer, making it taste as if it really is a nine. Your heightened expectations would heighten your experience.

    On the other hand, if you were expecting a 10 as you raised your glass, the gap between the beer’s objective eight-point quality and your 10-point expectations will be too large to bridge—so large, in fact, that you’ll be disappointed relative to your expectations and feel like you’re drinking a mere seven.

    All of this means that the trick to happiness (with beer as with much else in life) is to tame your expectations. Maybe try telling yourself that your latest brew is unlikely to be a 10, or remind yourself that the odds that your next beer will be spectacular are very low—and then be ready to enjoy it if that first quaff surpasses your less-than-great expectations.

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    Dear Dan,

    I’ve set myself a weekly budget of $500, which should cover groceries, lunch, coffee and nights out. I used to put everything on my credit card and try to keep track of my spending in my head, but I inevitably wound up spending more. To fight this credit-card temptation, I started taking out $500 in cash every Friday and spending only that. This strategy leaves me more aware of my outlays—but I’m still running out of cash by Thursday. What else can I do?

    —George 

    Your dedication is impressive. Having a budget for discretionary spending isn’t easy, but it is the first important step toward better finances. It’s also good that you’re managing your weekly budget without credit cards, which are designed to make it hard for us to remember how much we’ve spent.

    With that in mind, let me suggest two things. First, instead of using cash, switch to a prepaid debit card that you load with $500 a week. With cash, you tend to estimate how much is left just by looking at the piles of bills you have; the debit card can tell you after each transaction exactly how much is left in your weekly budget.

    Second, start your budget week on Monday, not on Friday. With your current method, you’re giving yourself the largest amount of money to start the most tempting part of the week—the weekend—which leaves you more likely to overspend. If you start your budget week on Monday, you’ll be more likely to try to save some cash to have a fun weekend.

    ___________________________________________________

    Dear Dan,

    What is the most effective pickup line?

    —Janet 

    A good pickup line should show some interest but not too much, and it should put the burden of proof on the other person. I’d suggest trying, “You don’t seem like my style, but you intrigue me.”

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 11:30:48 on 2017-09-16 Permalink
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    Ask Ariely: On Tee Time, Quick Quizzes, and Leisurely Lifestyles 

    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.

    ___________________________________________________

    Dear Dan,

    Many CEOs claim to use golf to informally “get things done.” How much are they really accomplishing on the links?

    —Paul 

    I used to believe in the popular notion that golfing is an important business tool, but a paper published last year in the journal Management Science changed my view. Lee Biggerstaff, David Cicero and Andy Puckett collected golfing records for more than 300 CEOs from S&P 1500 firms from 2008 to 2012 and found that the more golf a CEO played, the more a firm’s performance and value decreased. When CEOs played at least 22 rounds in a year, they found, the mean return on assets was more than 100 basis points lower than for firms whose CEOs played golf less frequently. I’m inclined to think that the idea of golf as a business tool is a self-serving tale that CEOs tell themselves and us to justify spending time and money at play.

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    Dear Dan,

    I am an economics professor, and many of my students don’t complete their readings before class. That makes class activities ineffective and meaningful discussions impossible. I have tried incentives and punishments related to their final grades, but these haven’t done much. Any suggestions for nudging my students along here?

    —Amarendu

    This is a challenge. You’re right to think about offering incentives, but they have to be fairly immediate. Waiting until the end of the semester isn’t going to work. Your goals include fostering a love of learning that will endure long after your class, which means that your nudges shouldn’t be perceived as penalties but as ways to help your students do their best.

    I recommend the following approach, which I use in my own courses. On the first day of class, I ask, “How many of you hope to do all the reading for each session?” They all raise their hands. Next I ask, “But how many of you will probably—particularly toward the end of the semester—sometimes not be on top of the readings before each class?” Again, they all raise their hands.

    Then I say, “OK. To help you achieve your goals, we’re going to have a quick quiz on the assigned reading at the beginning of each class. The quizzes should take three or four minutes and will make up 10% of your final grade. And to be clear, they’re designed to help you be the kind of student you want to be.” This has worked for me, and I hope you’ll find it effective with your students.

    ___________________________________________________

    Dear Dan,

    Is this column the best use of your time? For that matter, how should one decide how best to use one’s time, especially leisure time?

    —Paul 

    The way we spend our time, much like the way we spend our money, is mostly a question of opportunity cost. If you spend an hour reading, that’s an hour that you can’t spend training for a marathon.

    People vary somewhat in what makes them happy, but the longevity expert Dan Buettner has found some general lessons. His research shows that the world’s happiest people, in an average day, spend less than 30 minutes watching TV, devote just 30 to 60 minutes to social media, listen to music for at least two hours and get six to nine hours of sleep. They also volunteer two to four hours a week, practice relaxation techniques, take at least four weeks of vacation a year, read a book at least every other month, engage in sexual activity (the more, the merrier, Mr. Buettner says), and have close friends who are racially and ethnically diverse.

    All that may be too much of a lifestyle change for you, but try picking a few of the elements that seem simplest to implement—and over time, try to take on more.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 16:40:53 on 2017-09-14 Permalink
    Tags: Blog, Common Cents Lab, MetLife   

    Common Cents Lab Unveils Millennial Financial Regret Spending Report 

    New report seeks to measure whether spending can make you happy

    SAN FRANCISCO, CA–(Marketwired – Sep 12, 2017) – and Durham, NC Common Cents Lab, a financial research lab at Duke University supported by MetLife Foundation, today unveiled its first ever Millennial Regret Spending Report.

    “While it’s common to regret the last thing we ate, it may be equally common to regret the last thing we bought,” said Dan Ariely, Professor and behavioral economist. “The feeling of regret, while not pleasant, may serve as a teaching moment to help us understand what we enjoy and what we don’t enjoy. By systematically understanding the things people regret, we can design systems that encourage us to spend our money on things that make us happier.

    Conducted in partnership with Qapital, a fintech app focused on helping people save and spend better, the new study surveyed 1,000 Americans between the ages of 20 and 36-years old to identify which purchases they regarded as either most regretful or most satisfying. Through this effort, the team of behavioral economists isolated four positive personal financial habits that others may emulate to improve financial wellness and fulfillment.

    1. Put the Essentials on Autopay

    Participants were asked to rate how satisfied they were about recurring versus nonrecurring expenses across a number of categories. Almost universally, millennials rated their regret roughly 10% lower for recurring items. Since most recurring items are paid automatically, the idiom “set it and forget it” may carry more meaning than we thought.

    Like millennials, others can limit the angst of rent and insurance payments by placing them on autopay. At the same time, make the payments you’re most likely to regret more obvious by using cash or one-time payment methods.

    2. Spend on Enrichment and Others

    Millennials reported being most satisfied when spending on necessities (utilities, rent) or personal enrichment (community, education). The study also tracked what times of the week and year produced the most satisfying purchases. Seasonally, those purchases made near Thanksgiving and through the first two weeks of December produced nearly 90% satisfaction as compared to months like October and February that dropped below 50%.

    The lesson is that guilty pleasures often come with a heaping of regret, and that the greatest fulfillment can be gained from purchases that enrich your own life or are made for others.

    3. Limit Impulse Purchases

    The data clearly shows a greater level of fulfillment (roughly 70%) for purchases critical to living such as rent, healthcare and groceries over impulse purchases (near 50%) like digital purchases, coffee shops, and fast food. Similarly, those purchases made on Wednesdays were nearly five percentage points more satisfying than those made on Saturday.

    The takeaway is that decisions made independent of the pressure and the heat of the moment can improve your overall financial happiness.

    4. Sweat the Small Stuff

    That final tally for that $4 latte may be much more in the long run, according to the survey findings as Millennials tended to regret smaller purchases much more than larger ones. On average, respondents reported a high level of satisfaction for purchases taking up a larger portion of their monthly income.

    “Individually, these lessons seem intuitive, but taken together as a lifestyle, they can provide a blueprint for living a much more satisfying financial life,” said Kristen Berman, co-founder of Common Cents. “Interestingly, these are lessons that can be applied regardless of income level as a guide to improved financial decision making.”

    A full copy of the Millennial Financial Regret Spending Report is available by request or can be found at http://advanced-hindsight.com/millennial-financial-regret-spending/.

    About The Common Cents Lab

    The Common Cents Lab, supported by MetLife Foundation, is a financial research lab at the Center for Advanced Hindsight at Duke University that creates and tests interventions to help low- to moderate-income households increase their financial well-being. Common Cents leverages research gleaned from behavioral economics to create interventions that lead to positive financial behaviors. The lab is led by famed Behavioral Economics Professor Dan Ariely and is comprised of researchers and experts in product design, economics, psychology, public policy, advertising, business administration, and more.

    To fulfill its mission, Common Cents partners with organizations, including fintech companies, credit unions, banks, and nonprofits, that believe their work could be improved through insights gained from behavioral economics. To learn more about Common Cents Lab visit www.commoncentslab.org.

    About MetLife Foundation

    MetLife Foundation was created in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. Since its founding through the end of 2016, MetLife Foundation has provided more than $744 million in grants and $70 million in program-related investments to organizations addressing issues that have a positive impact in their communities.

    Today, the Foundation is dedicated to advancing financial inclusion, committing $200 million to help build a secure future for individuals and communities around the world.

    To learn more about MetLife Foundation, visit www.metlife.org.

    Find the original post here.


     
  • feedwordpress 00:30:45 on 2017-09-03 Permalink
    Tags: , Blog   

    Ask Ariely: On Denying Donuts, Car Conversations, and Curbing Confidence 

    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.

    ___________________________________________________

    Dear Dan,

    I often fight with temptation, and it usually wins. I want to eat better, exercise more, save a bit for retirement and in general consider the future when I make decisions. How can I resist temptation?

    —John 

    There’s no easy answer to this old problem. As Oscar Wilde famously said, “I can resist anything except temptation.” The endless stream of enticements throughout the day makes it hard to consistently make good decisions. Even if we resist an urge here and there, we tend to end up failing a lot.

    That’s where personal rules can help. In effect, we make a one-time decision when we create a guideline, and from then on, we are just executing a pre-existing policy, which makes life considerably simpler.

    Imagine that someone in your office brought in a box of doughnuts every day, forcing you to decide every day whether to indulge. You would probably be able to overcome the temptation from time to time, but you would also probably break down on other occasions. If you simply had a flat personal policy—no doughnuts during the workweek—you would bypass the daily decision.

    Of course, even the strongest among us is likely to break such rules every now and then, but having a policy and declaring it to yourself will help to keep you from giving in.

    ___________________________________________________

    Dear Dan,

    Studies have shown that talking on a cellphone while driving (even using hands-free technology) is about as dangerous as driving while intoxicated. But talking to someone sitting in the passenger seat is widely considered fine. Why is talking on the phone in the car so much more dangerous?

    —Larry

    Your question revolves around the social norms of conversation. When we drive, a passenger can see what’s going on around the car—a bus swerving, a pedestrian running across the street, a light turning amber—and with this shared knowledge, both the driver and the passenger adjust the conversation. They chat more intensely when the driving conditions are good, and they shut up when road conditions demand more attention. A pause in the conversation isn’t strange for the passenger, who can also see what’s going on.

    By contrast, when we’re talking on the phone while driving, our interlocutor has no idea what’s happening in and around the car and keeps up the conversation whether we can afford to divide our attention or not. The driver, who feels social pressure to be polite and keep chatting, has less attention to devote to the road and winds up taking extra chances. We thus put ourselves at great personal risk just to avoid being rude.

    ___________________________________________________

    Dear Dan,

    I work at a consulting company where a heavy dose of personal overconfidence is standard. Any advice on how to reduce it?

    —Jeff 

    I’m not sure this is a problem. Social progress often depends on overly confident people. Consider those who open restaurants: They are clearly fighting the odds, and if they looked objectively at their decision, they might not be ready to gamble. But would we want to live in a society where people avoid such risks? The food would certainly be worse.

    Overconfidence has an upside as well as a downside. So before you try to decrease it, think about the benefits it brings to your firm—including more innovation and motivation—and only then decide whether decreasing overconfidence is really the way to go.

    See the original article in the Wall Street Journal here.


     
  • feedwordpress 11:30:33 on 2017-08-19 Permalink
    Tags: , , Blog, , , , ,   

    Ask Ariely: On Helping Hands, Popular Posts, and Mischievous Motivators 

    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.

    ___________________________________________________

    Dear Dan,

    I’m struggling financially, and I’m considering asking some friends for help—perhaps seeing if they could offer a small amount every month until things get better. Is this a good strategy, or should I ask for more money upfront?

    —Jordan 

    Mixing finances and personal relationships is always risky. But if you have the right friends—understanding, compassionate and generous of spirit—and are determined to go this route, I would ask them for all the money upfront.

    The issue here isn’t just asking them for help; it is their having to think about your request. When a friendship gets tangled up with personal finances, the best you can hope for is that all involved won’t have it in mind when they spend time together and will be able just to enjoy one another’s company. But if you have to keep asking your friends for more installments, everyone is more likely to be thinking about it. That will lead to more uncomfortable conversations, strain the friendships and add to your financial stress.

    So the simplest route is to ask just once, for the full amount that you need, thank your friends sincerely—and not mention it again until you can pay them back.

    ___________________________________________________

    Dear Dan,

    Why would people rather believe a viral social-media post over credible scientific information?

    —Efrat 

    Because we are cognitively lazy and want simple answers.

    A fuller explanation would also concede that academics and scientists bear some responsibility for the difficulty that some feel in taking our research at face value. We tend to write in technical jargon, to add endless qualifications to our findings and to insist that every topic needs to be studied further—all of which makes it hard for nonspecialists to take guidance from us.

    As for posts on social media, their believability has to do with what psychologists call “social proof.” That is, we instinctively follow the herd, without realizing that we are doing it. The algorithms that social networks use are designed to exploit social proof and to get people to spend more time online. When a post becomes popular, the social networks promote it even more heavily, targeting users who are likely to be sympathetic, with the goal of maximizing their use of the network. Of course, that means that more people will see the popular post, pushing the chance of something going viral even higher.

    ___________________________________________________

    Dear Dan,

    My son, a fourth-grader, recently had another child’s progress report placed in his box by accident. That made me wonder: If children were “accidentally” sent a fake report card, along with their own, for another kid who was making slightly better progress in school, would it motivate them to work harder?

    —Paula 

    I like the way you think—slightly devious but very creative. You’re also right. Giving people (children included) the sense that another person is doing better increases their motivation—so long as it’s only slightly better. Setting unattainable goals doesn’t work well, but offering a reachable one can be a useful goad.

    See the original article in the Wall Street Journal here.


     
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