23
ott
14

Rationality and Irrationality in Government – Video and audio – Cass Sunstein

What impact is behavioural science having on politics and business? Simplified disclosure, default rules, social norms, and ‘choice architecture’ are all being used to steer people in specific directions. Are these ‘nudges’ improving our decisions? Are they offsetting irrational behaviour? Cass Sunstein, author of Nudge and the previous Administrator of the White House Office of Information and Regulatory Affairs in the Obama administration will discuss these new policies and the question they raise about freedom of choice. 

Cass Sunstein (@CassSunstein) is the Robert Walmsley University Professor at Harvard Law School. 

Source: www.lse.ac.uk

See on Scoop.itBounded Rationality and Beyond

22
ott
14

What We Mean When We Say ‘I Did Something I Didn’t Want to Do’ | Big Think

One way to understand a nudge—a government policy that inclines you to make a particular choice, often without your awareness—is that it makes it easier for you to do what you really would have wanted despite your fallible human nature. But how do you know what you really want? You want to lose weight but you had that candy bar instead of an apple. You want to save money but you went ahead and ordered that new Kindle even though your old one still works. You want to recycle but you threw that plastic bottle in the trash. Familiar as it is, the sense that I did something that I didn’t want to do is quite strange. After all, you did it. That’s good evidence you wanted to. Your argument that you didn’t suggests that you have a true self which was temporarily overruled by a lesser version of you. How do you know that the regretful one is the real you? Wanting to perfect yourself is all well and good, as D.H. Lawrence once wrote, but “every man as long as he remains alive is in himself a multitude of conflicting men.” Which of these do you choose to perfect, at the expense of every other?”

Behavioral economists, and the officials who use their work to make laws and rules, have often described this sense of wanting one thing but doing another as a failure to understand that the future is as real as the present. The problem is supposed to be that your emotions and biases make you see the moment today as more important than the years to come. Thus, you have regrets because you “discount the future” in a moment of weakness, and then see your mistake when your head is clear. Many behavioral interventions (like this one) are designed to make the future feel as important as the present. The assumption here is that the you who is future-oriented is a better, truer version of you.

Source: bigthink.com

See on Scoop.itBounded Rationality and Beyond

22
ott
14

Fighting Ebola Means Managing Fear

The worst-ever outbreak of Ebola — a hemorrhagic fever that has in the past killed nine out of 10 people that contract it — is raging through the West African countries of Guinea, Liberia, and Sierra Leone, with consequences so dire that the Liberian Minister of Defense characterized it as “… spreading like wildfire, devouring everything in its path.”

In this so-called Hot Zone, a term made famous by the 1994 book, more than 2,000 Africans of all ages and from various socioeconomic backgrounds have already died, and the World Health Organization estimates that as many as 20,000 fatalities might occur before the epidemic is contained. Both the U.S. Center for Disease Control’s head, Tom Frieden, and the operations director of Doctors without Borders, Bart Janssens, have described the situation as “out of control.”

One reason why it has been so difficult to tackle the Ebola crisis is fear, which prevents healthcare workers from grappling effectively with the situation. Fear can hobble an organization; for instance, recent research shows that at Nokia, fear led to paralysis, isolating the headquarters from the marketplace and rendering it unable to respond to a fast-changing situation.

Source: blogs.hbr.org

See on Scoop.itBounded Rationality and Beyond

21
ott
14

Behavioural economics: How to ‘nudge’ customers and influence people

Behavioural economics posits that all behaviour, including in business, is shaped by irrational and unconscious influences.

Behavioural economics posits that all human behaviour, including in business, is shaped by irrational and unconscious influences, such as bias, social pressure and cognitive inertia. The notion of psychology as a driver of economic action is not new: As an academic discipline behavioural economics dates back to the 1970s, and the foundational principle back at least to Adam Smith’sThe Theory of Moral Sentiments Behavioural economics has, however, only in recent years found widespread currency within the business world, spurred by a plethora of bestsellers, including Thinking Fast and Slow (2011) by Daniel Kahneman and Predictably Irrational (2oo8) by Dan Ariely.
Increased interest from the business community is due to the insights gleaned from the discipline, which have been used to successfully “nudge” customer behaviour in a variety of sectors, such as wealth management, insurance, customer products and retail. Specifically, behavioural economics has been used by product managers to guide consumers toward certain product choices (i.e., “choice design”), by marketers to develop brochures and Web sites that more persuasively communicate marketing messages and by service managers to design better support experiences.
The field can provide hundreds of potential “triggers” to augment behaviour, depending on the business objective, situation and context. Psychologists Robert Cialdini, Noah Goldstein and Steve Martin identify 50 different possible applications in The Small Big: Small Changes That Spark Big Influence (2014).Three among the list include: Leverage social proof:People will make the same decisions as a group with which they identify. Nudge people to adopt a new behavior by showing them a training video featuring their peers doing the same thing.Invoke first names: Get and keep people’s attention by frequently using their first name. A sales representative’s repeated use of a prospect’s name will cue their attention through the clutter of other sensory inputs and focus attention on the key message.The power of loss avoidance:</strong> Individuals strongly prefer avoiding losses to acquiring gains. Marketing studies have shown that consumers would rather avoid a $5 surcharge then get a $5 discount even though the net effect is the same. Case study: behavioural economics in action.

 

Source: business.financialpost.com

See on Scoop.itBounded Rationality and Beyond

21
ott
14

Why Emotional Excess is Essential to Writing and Creativity

Something is always born of excess: great art was born of great terrors, great loneliness, great inhibitions, instabilities, and it always balances them.” The third volume of Anaïs Nin’s diaries has been on heavy rotation in recent weeks, yielding Nin’s thoughtful and timeless meditations on life,mass movements, Paris vs. New York, what makes a great city, and the joy of handcraft. The subsequent installment, The Diary of Anais Nin, Vol. 4: 1944-1947 (public library) is an equally rich treasure trove of wisdom on everything from life to love to the art of writing. In fact, Nin’s gift shines most powerfully when she addresses all of these subjects and more in just a few ripe sentences. Such is the case with the following exquisite letter of advice she sent to a seventeen-year-old aspiring author by the name of Leonard W., whom she had taken under her wing as creative mentor.

Source: www.brainpickings.org

See on Scoop.itBounded Rationality and Beyond

21
ott
14

Bias cognitivi: cinque modi veloci per ingannarsi da soli

I bias cognitivi sono automatismi mentali che ci portano a giudicare e a decidere in fretta e senza fatica. Peccato che decisioni e giudizi siano sbagliati.

Source: nuovoeutile.it

é dimostrato che questa visione negativa dei bias cognitivi è dovuta solo all’averli rilevati quando sbagliano, gli studiosi che affermano questo non considerano il numero superiore di casi in cui certi bias agiscono in modo corretto.

See on Scoop.itBounded Rationality and Beyond

21
ott
14

Study: Most published results in financial economics are wrong

Harvey says he was inspired by a 2005 study that shook the medical community when it proclaimed that more than half of all medical study findings are wrong. He wanted to know if that was true in the area of finance as well.

He and his co-authors studied 315 papers that examine different factors that might predict returns on stocks. Those papers propose all sorts of different potentially predictive variables, like leverage and price-to-earning ratios.

He uses genetic testing as a way of explaining.Scientists wanting to find the gene that causes or is related to a particular disease might test lots of genes. For any one gene-disease test, the odds that a statistical relationship between the two is a pure coincidence are low. But as you test more and more hypotheses, the odds of finding a “statistically significant” relationship that has no causal basis get higher and higher.

Source: www.vox.com

See on Scoop.itBounded Rationality and Beyond




Time is real? I think not

ottobre: 2014
L M M G V S D
« ago    
 12345
6789101112
13141516171819
20212223242526
2728293031  

Commenti recenti

Inserisci il tuo indirizzo e-mail per iscriverti a questo blog e ricevere notifiche di nuovi messaggi per e-mail.

Unisciti agli altri 14 follower

Latest Tweets


Iscriviti

Ricevi al tuo indirizzo email tutti i nuovi post del sito.

%d blogger cliccano Mi Piace per questo: