The Situationist

Posts Tagged ‘Choice Myth’

How Much Choice Would You Choose?

Posted by The Situationist Staff on April 30, 2012

From Harvard Gazette:

Undergraduates packed Science Center E on Monday to hear two of Harvard’s leading social scientists discuss the way that humans make decisions, and whether having more choices really makes us happier.

The event, “What is Your N? A Personality Test for 4 AM Philosophers,” featured a conversation between social psychologist Dan Gilbert and economist N. Gregory Mankiw, and was sponsored by the Harvard University Initiative on the Foundations of Human Behavior. The discussion was moderated by professors Nicholas Christakis of Harvard Medical School and the Department of Sociology and David Laibson of the Department of Economics.

Laibson began the debate with the following thought experiment:

“We have pre-selected 100 different bottles of alcohol, covering all popular categories — beer, wine, rum, gin, vodka, whiskey, etc. Another person (who remains anonymous) is going to take one (regular-sized) drink, poured from one of the 100 bottles. Call him/her the recipient.

You will pick the number of bottles that the recipient will be able to choose among. To give the recipient complete choice, you would pick N = 100. To simplify the recipient’s decision, you would pick N < 100. You can pick any N value from 1 to 100.

If you pick N < 100, a robot will randomly determine which of the original 100 bottles the recipient will receive (with no repeats). You don’t get to pre-select the specific bottles the robot will choose. The N bottles will be presented to the recipient in categories (like whiskeys or vodkas), so the recipient can easily sort through them.

Your job is to pick N so as to maximize the happiness of the recipient.”

Next, Laibson asked the group to choose the number of bottles that they would send to the recipient under two different scenarios. In the first, the recipient would never know that there were 100 bottles to begin with. In the second scenario, he or she would.

As the students tapped on their laptops to submit their responses to the question online, Mankiw and Gilbert had at it. Mankiw kicked off the discussion by saying that the answer was easy for him and, he hoped, for anyone who had taken his introductory economics class. He would send the anonymous stranger all 100 bottles. Without any knowledge of the recipient’s tastes, it made sense to send as many bottles as possible in order to increase the chance that the stranger would get a drink that they would like.

“My wife and I [recently] went to a bar and had a drink and dinner,” he explained. “The bar had a big selection. I had no trouble at all. I said ‘I want a Tanqueray martini on the rocks with a twist.’ If the bartender had said ‘We randomly reduced the number of selections, so we don’t have Tanqueray tonight. We have Bombay Sapphire,’ I would have been a little disappointed. If they had said ‘We only have Gordon’s gin tonight,’ I would have been really upset. And if they had said ‘All we have is Kahlua, and crème de menthe,’ I would have walked out. So it was very clear to me that more selection is good.”

Gilbert said that Mankiw’s answer was not surprising. Americans like choices; the more the better. We want to choose what we want, even if the options are so great that our decision becomes essentially random. But Gilbert said there is more to choice than simply matching selection with preferences, and that there are costs associated with decision making, particularly when the options are too great. To illustrate his point, Gilbert described a study by Princeton psychologist Eldar Shafir.

Shafir presented doctors with a pink pill that was said to treat osteoarthritis. The physicians learned about the drug, and then were asked whether or not they would be likely to prescribe it. Most said that they would.

Shafir then went to another group of physicians, this time with a pink and blue pill. He told the group that both would treat osteoarthritis and that the drugs were similar in their effects, aside from their color. He asked this group of doctors whether they would prescribe the pink pill, the blue pill, or neither. Fewer doctors said that they would give patients a pill — either pink or blue — than the group that had been presented with only one pill.

“You should get at least the same number prescribing one of the pills,” said Gilbert. “Or even more, because some will only like blue pills. However, the actual number goes down. Why? Because the physicians say ‘Well, I could do nothing, or choose between one of these two similar pills and I really can’t decide between them, so I’ll do nothing, because nothing looks really different than the pill.”

In terms of Laibson’s thought exercise, Gilbert noted that more bottles and more types of liquor could make the decision more difficult for the recipient. If you offer the drinker wine or beer, and the drinker likes wine, the choice is easy. But if the drinker likes wine and gets four different bottles to choose from versus one type of beer, they might actually choose the beer, even though they prefer wine.

“Because I’ve given you extra choices, you have now gone to the thing you like less, because you can’t think of a good reason to pick among the wines that are so similar,” Gilbert said.

After some waffling, Gilbert, half seriously, gave the number of bottles he would send to the stranger: two.

“Then you have only Kahlua and crème de menthe!” laughed Mankiw.

After Gilbert and Mankiw held forth, Laibson revealed the results of the online poll. Under conditions where the recipient would not be informed if their choices were narrowed, there was a barbell-shaped distribution. A large group of the 220 student respondents said that they would send between zero and 30 bottles to the drinker, with another group up at 100 bottles. In the second scenario, however, where the recipient would know if the selection had been pared, undergraduates overwhelmingly voted to send all 100 bottles to the drinker.

The results were fascinating to Laibson, who has studied employee participation in retirement plans and discovered that enrollment increases dramatically when workers are automatically enrolled and must voluntarily opt out. Given that the criticism for making auto enrollment the default in business is often that the policy is paternalistic, the results of the survey shed light on when people are OK with “Big Brother” and when they are not.

“The message here seems to be ‘Be a paternalist, but keep it a secret,’” Laibson said, eliciting laughter from the students. “The minute the recipient knows [his or her choices have been narrowed], this community gives a different answer [to the thought experiment]. Paternalism is bad when the recipient understands that paternalistic motives organize what happens to them.”

Related Situationist posts:

You can review hundreds of Situationist posts related to the topic of “choice myth” here.

Posted in Behavioral Economics, Choice Myth, Events, Food and Drug Law, Ideology, Social Psychology | Tagged: , , , | Comments Off

Slow Choose the Jam

Posted by The Situationist Staff on March 25, 2012

Posted in Choice Myth, Marketing, Video | Tagged: , , | Leave a Comment »

The Situation of Choice

Posted by The Situationist Staff on January 23, 2012

From the APS Monitor (excerpts from a terrific primer on “The Mechanics of Choice”):

* * *

The prediction of social behavior significantly involves the way people make decisions about resources and wealth, so the science of decision making historically was the province of economists. And the basic assumption of economists was always that, when it comes to money, people are essentially rational. It was largely inconceivable that people would make decisions that go against their own interests. Although successive refinements of expected-utility theory made room for individual differences in how probabilities were estimated, the on-the-surface irrational economic behavior of groups and individuals could always be forced to fit some rigid, rational calculation.The problem is — and everything from fluctuations in the stock market to decisions between saving for retirement or purchasing a lottery ticket or a shirt on the sale rack shows it — people just aren’t rational. They systematically make choices that go against what an economist would predict or advocate.Enter a pair of psychological scientists — Daniel Kahneman (currently a professor emeritus at Princeton) and Amos Tversky — who in the 1970s turned the economists’ rational theories on their heads. Kahneman and Tversky’s research on heuristics and biases and their Nobel Prize winning contribution, prospect theory, poured real, irrational, only-human behavior into the calculations, enabling much more powerful prediction of how individuals really choose between risky options.

* * *

Univ. of Toronto psychologist Keith E. Stanovich and James Madison Univ. psychologist Richard F. West refer to these experiential and analytical modes as “System 1” and “System 2,” respectively. Both systems may be involved in making any particular choice — the second system may monitor the quality of the snap, System-1 judgment and adjust a decision accordingly.7 But System 1 will win out when the decider is under time pressure or when his or her System-2 processes are already taxed.

This is not to entirely disparage System-1 thinking, however. Rules of thumb are handy, after all, and for experts in high-stakes domains, it may be the quicker form of risk processing that leads to better real-world choices. In a study by Cornell University psychologist Valerie Reyna and Mayo Clinic physician Farrell J. Lloyd, expert cardiologists took less relevant information into account than younger doctors and medical students did when making decisions to admit or not admit patients with chest pain to the hospital. Experts also tended to process that information in an all-or-none fashion (a patient was either at risk of a heart attack or not) rather than expending time and effort dealing with shades of gray. In other words, the more expertise a doctor has, the more that his or her intuitive sense of the gist of a situation was used as a guide.8

In Reyna’s variant of the dual-system account, fuzzy-trace theory, the quick-decision system focuses on the gist or overall meaning of a problem instead of rationally deliberating on facts and odds of alternative outcomes.9 Because it relies on the late-developing ventromedial and dorsolateral parts of the frontal lobe, this intuitive (but informed) system is the more mature of the two systems used to make decisions involving risks.

A 2004 study by Vassar biopsychologist Abigail A. Baird and Univ. of Waterloo cognitive psychologist Jonathan A. Fugelsang showed that this gist-based system matures later than do other systems. People of different ages were asked to respond quickly to easy, risk-related questions such as “Is it a good idea to set your hair on fire?”, “Is it a good idea to drink Drano?”, and “Is it a good idea to swim with sharks?” They found that young people took about a sixth of a second longer than adults to arrive at the obvious answers (it’s “no” in all three cases, in case you were having trouble deciding).10 The fact that our gist-processing centers don’t fully mature until the 20s in most people may help explain the poor, risky choices younger, less experienced decision makers commonly make.

Adolescents decide to drive fast, have unprotected sex, use drugs, drink, or smoke not simply on impulse but also because their young brains get bogged down in calculating odds. Youth are bombarded by warning statistics intended to set them straight, yet risks of undesirable outcomes from risky activities remain objectively small — smaller than teens may have initially estimated, even — and this may actually encourage young people to take those risks rather than avoid them. Adults, in contrast, make their choices more like expert doctors: going with their guts and making an immediate black/white judgment. They just say no to risky activities because, however objectively unlikely the risks are, there’s too much at stake to warrant even considering them.11

Making Better Choices

The gist of the matter is, though, that none of us, no matter how grown up our frontal lobes, make optimal decisions; if we did, the world would be a better place. So the future of decision science is to take what we’ve learned about heuristics, biases, and System-1 versus System-2 thinking and apply it to the problem of actually improving people’s real-world choices.

One obvious approach is to get people to increase their use of System 2 to temper their emotional, snap judgments. Giving people more time to make decisions and reducing taxing demands on deliberative processing are obvious ways of bringing System 2 more into the act. Katherine L. Milkman (U. Penn.), Dolly Chugh (NYU), and Max H. Bazerman (Harvard) identify several other ways of facilitating System-2 thinking.12 One example is encouraging decision makers to replace their intuitions with formal analysis — taking into account data on all known variables, providing weights to variables, and quantifying the different choices. This method has been shown to significantly improve decisions in contexts like school admissions and hiring.

Having decision makers take an outsider’s perspective on a decision can reduce overconfidence in their knowledge, in their odds of success, and in their time to complete tasks. Encouraging decision makers to consider the opposite of their preferred choice can reduce judgment errors and biases, as can training them in statistical reasoning. Considering multiple options simultaneously rather than separately can optimize outcomes and increase an individual’s willpower in carrying out a choice. Analogical reasoning can reduce System-1 errors by highlighting how a particular task shares underlying principles with another unrelated one, thereby helping people to see past distracting surface details to more fully understand a problem. And decision making by committee rather than individually can improve decisions in group contexts, as can making individuals more accountable for their decisions.13

In some domains, however, a better approach may be to work with, rather than against, our tendency to make decisions based on visceral reactions. In the health arena, this may involve appealing to people’s gist-based thinking. Doctors and the media bombard health consumers with numerical facts and data, yet according to Reyna, patients — like teenagers — tend initially to overestimate their risks; when they learn their risk for a particular disease is actually objectively lower than they thought, they become more complacent — for instance by forgoing screening. Instead, communicating the gist, “You’re at (some) risk, you should get screened because it detects disease early” may be a more powerful motivator to make the right decision than the raw numbers. And when statistics are presented, doing so in easy-to-grasp graphic formats rather than numerically can help patients (as well as physicians, who can be as statistically challenged as most laypeople) extract their own gists from the facts.14

Complacency is a problem when decisions involve issues that feel more remote from our daily lives — problems like global warming. The biggest obstacle to changing people’s individual behavior and collectively changing environmental policy, according to Columbia University decision scientist Elke Weber, is that people just aren’t scared of climate change. Being bombarded by facts and data about perils to come is not the same as having it affect us directly and immediately; in the absence of direct personal experience, our visceral decision system does not kick in to spur us to make better environmental choices such as buying more fuel-efficient vehicles.15

How should scientists and policymakers make climate change more immediate to people? Partly, it involves shifting from facts and data to experiential button-pressing. Powerful images of global warming and its effects can help. Unfortunately, according to research conducted by Yale environmental scientist Anthony A. Leisurowitz, the dominant images of global warming in Americans’ current consciousness are of melting ice and effects on nonhuman nature, not consequences that hit closer to home; as a result, people still think of global warming as only a moderate concern.16

Reframing options in terms that connect tangibly with people’s more immediate priorities, such as the social rules and norms they want to follow, is a way to encourage environmentally sound choices even in the absence of fear.17 For example, a study by Noah J. Goldstein (Univ. of Chicago), Robert B. Cialdini (Arizona State), and Vladas Griskevicius (Univ. of Minnesota) compared the effectiveness of different types of messages in getting hotel guests to reuse their towels rather than send them to the laundry. Messages framed in terms of social norms — “the majority of guests in this room reuse their towels” — were more effective than messages simply emphasizing the environmental benefits of reuse.18

Yet another approach to getting us to make the most beneficial decisions is to appeal to our natural laziness. If there is a default option, most people will accept it because it is easiest to do so — and because they may assume that the default is the best. University of Chicago economist Richard H. Thaler suggests using policy changes to shift default choices in areas like retirement planning. Because it is expressed as normal, most people begin claiming their Social Security benefits as soon as they are eligible, in their early to mid 60s — a symbolic retirement age but not the age at which most people these days are actually retiring. Moving up the “normal” retirement age to 70 — a higher anchor — would encourage people to let their money grow longer untouched.19

* * *

Making Decisions About the Environment

APS Fellow Elke Weber recently had the opportunity to discuss her research with others who share her concern about climate change, including scientists, activists, and the Dalai Lama. Weber . . . shared her research on why people fail to act on environmental problems. According to her, both cognitive and emotional barriers prevent us from acting on environmental problems. Cognitively, for example, a person’s attention is naturally focused on the present to allow for their immediate survival in dangerous surroundings. This present-focused attitude can discourage someone from taking action on long-term challenges such as climate change. Similarly, emotions such as fear can motivate people to act, but fear is more effective for responding to immediate threats. In spite of these challenges, Weber said that there are ways to encourage people to change their behavior. Because people often fail to act when they feel powerless, it’s important to share good as well as bad environmental news and to set measurable goals for the public to pursue. Also, said Weber, simply portraying reduced consumption as a gain rather than a loss in pleasure could inspire people to act.

References and Further Reading:

  • 7. Stanovich, K.E., & West, R.F. (2000). Individual differences in reasoning: Implications for the rationality debate.
  • Behavioral & Brain Sciences, 23, 645–665.
  • 8. Reyna, V.F., & Lloyd, F. (2006). Physician decision making and cardiac risk: Effects of knowledge, risk perception, risk
  • tolerance, and fuzzy processing. Journal of Experimental Psychology: Applied, 12, 179–195.
  • 9. Reyna, V.F. (2004). How people make decisions that involve risk: A dual-processes approach. Current Directions in
  • Psychological Science, 13, 60–66.
  • 10. Baird, A.A., & Fugelsang, J.A. (2004). The emergence of consequential thought: Evidence from neuroscience.
  • Philosophical Transactions of the Royal Society of London, Series B: Biological Sciences, 359, 1797–1804.
  • 11. Reyna, VF., & Farley, F. (2006). Risk and rationality in adolescent decision making. Psychological Science in the Public
  • Interest, 7, 1–44.
  • 12. Milkman, K.L., Chugh, D., & Bazerman, M.H. (2009). How can decision making be improved? Perspectives on
  • Psychological Science, 4, 379–383.
  • 13. Ibid.
  • 14. See Wargo, E. (2007). More than just the facts: Helping patients make informed choices. Cornell University Department
  • of Human Development: Outreach & Extension. Downloaded from http://www.human.cornell.edu/hd/outreach-extension/loader.cfm?csModule=security/getfile&PageID=43508
  • 15. Weber, E.U. (2006). Experience-based and description-based perceptions of long-term risk: Why global warming does
  • not scare us (yet). Climatic Change, 77, 103–120.
  • 16. Leisurowitz, A. (2006). Climate change risk perception and policy preferences: The role of affect, imagery, and values.
  • Climatic Change, 77, 45–72.
  • 17. Weber, E.U. (2010). What shapes perceptions of climate change? Wiley Interdisciplinary Reviews: Climate Change, 1,
  • 332–342.
  • 18. Goldstein, N.J., Cialdini, R.B., & Griskevicius, V. (2008). A room with a viewpoint: Using social norms to motivate
  • environmental conservation in hotels. Journal of Consumer Research, 35. Downloaded from http://www.csom.umn.edu/assets/118359.pdf
  • 19. Thaler, R.H. (2011, July 16). Getting the Most Out of Social Security. The New York Times. Downloaded from
  • http://www.nytimes.com/2011/07/17/business/economy/when-the-wait-for-social-security-checks-is-worth-it.html?_r=1&adxnnl=1&adxnnlx=1322835490-9f6qOJ9Sp2jSw4LKDjmYgw

More.

Related Situationist posts:

You can review hundreds of Situationist posts related to the topic of “choice myth” here.

Posted in Behavioral Economics, Choice Myth, History, Ideology, Neuroscience, Public Policy | Tagged: , , , | 1 Comment »

The Situation of “Opting Out”

Posted by The Situationist Staff on December 29, 2011

Since the early 2000s, much of  Situationist Contributors’ research, writing, teaching, and speaking has focused on the role of “choice,” “the choice myth,” and “choicism” in rationalizing injustice and inequality, particularly in the U.S.  (e.g., The Blame Frame: Justifying (Racial) Injustice in America).  That work has, among other factors, helped to inspire a growing body of fascinating experimental research (and, unfortunately, one derivative book) on the topic.   Over the next couple of months, we will highlight some of that intriguing new research on The Situationist.  (First installment, “Choice and Inequality, is here.)

Here is a summary of research co-authored by Situationist friend Nicole Stephens.

From APS:

For the first time in history, the majority of Americans believe that women’s job opportunities are equal to men’s. For example, a 2005 Gallup poll indicated that 53 percent of Americans endorse the view that opportunities are equal, despite the fact that women still earn less than men, are underrepresented at the highest levels of many fields, and face other gender barriers such as bias against working mothers and inflexible workplaces.

New research from the Kellogg School of Management at Northwestern University helps to explain why many Americans fail to see these persistent gender barriers. The research demonstrates that the common American assumption that behavior is a product of personal choice fosters the belief that opportunities are equal and that gender barriers no longer exist in today’s workplace.

The study, “Opting Out or Denying Discrimination? How the Framework of Free Choice in American Society Influences Perceptions of Gender Inequality,” suggests that the assumption that women “opt out” of the workforce, or have the choice between career or family, promotes the belief that individuals are in control of their fates and are unconstrained by the environment.

The study was co-authored by Nicole M. Stephens, assistant professor of management and organizations at the Kellogg School of Management, and Cynthia S. Levine, a doctoral student in the psychology department at Stanford University. It will be published in a forthcoming issue of Psychological Science, a journal of the Association for Psychological Science.

“Although we’ve made great strides toward gender equality in American society, significant obstacles still do, in fact, hold many women back from reaching the upper levels of their organizations,” said Stephens. “In our research, we sought to determine how the very idea of ‘opting out,’ or making a choice to leave the workplace, may be maintaining these social and structural barriers by making it more difficult to recognize gender discrimination.”

In one study, a group of stay-at-home mothers answered survey questions about how much choice they had in taking time off from their career and about their feelings of empowerment in making life plans and controlling their environment.

The participants then reviewed a set of real statistics about gender inequality in four fields – business, politics, law and science/engineering – and were asked to evaluate whether these barriers were due to bias against women or societal and workplace factors that make it difficult for women to hold these positions.

As predicted, most women explained their workplace departure as a matter of personal choice – which is reflective of the cultural understanding of choice in American society and underscores how the prevalence of choice influences behavior. These same women experienced a greater sense of personal well-being, but less often recognized the examples of discrimination and structural barriers presented in the statistics.

In a follow-up experiment, the researchers examined the consequences of the common cultural representation of women’s workplace departure as a choice. Specifically, they examined how exposure to a choice message influenced Americans’ beliefs about equality and the existence of discrimination. First, undergraduate students were subtly exposed to one of two posters on a wall about women leaving the workforce: either a poster with a choice message (“Choosing to Leave: Women’s Experiences Away from the Workforce”) or one in a control condition that simply said “Women at Home: Experiences Away from the Workforce.”

Then, the participants were asked to take a survey about social issues. The participants exposed to the first poster with the choice message more strongly endorsed the belief that opportunities are equal and that gender discrimination is nonexistent, versus the control group who more clearly recognized discrimination. Interestingly, those participants who considered themselves to be feminists were more likely than other participants to identify discrimination.

“This second experiment demonstrates that even subtle exposure to the choice framework promotes the belief that discrimination no longer exists,” said Levine. “One single brief encounter – such as a message in a poster – influenced the ability to recognize discrimination. Regular exposure to such messages could intensify over time, creating a vicious cycle that keeps women from reaching the top of high-status fields.”

Overall, Stephens and Levine noted that while choice may be central to women’s explanations of their own workplace departure, this framework is a double-edged sword.

“Choice has short-term personal benefits on well-being, but perhaps long-term detriments for women’s advancement in the workplace collectively,” said Stephens. “In general, as a society we need to raise awareness and increase attention for the gender barriers that still exist. By taking these barriers into account, the discussion about women’s workplace departure could be reframed to recognize that many women do not freely choose to leave the workplace, but instead are pushed out by persistent workplace barriers such as limited workplace flexibility, unaffordable childcare, and negative stereotypes about working mothers.”

More.

You can download a pdf of the article here.

Related Situationst posts:

You can review hundreds of Situationist posts related to the topic of “choice myth” here or to the topic of inequality here.

Posted in Abstracts, Choice Myth, Distribution, Social Psychology | Tagged: , , | Leave a Comment »

Choice and Inequality

Posted by The Situationist Staff on December 17, 2011

Since the early 2000s, much of Jon Hanson’s (and other Situationist Contributor’s) research, writing, teaching, and speaking has focused on the role of “choice,” “the choice myth,” and “choicism” in rationalizing injustice and inequality, particularly in the U.S.  (e.g., The Blame Frame: Justifying (Racial) Injustice in America).  That work has helped to inspire a significant amount of fascinating experimental research (and, unfortunately, one derivative book) on the topic.   Over the next couple of months, we will highlight some of that intriguing new research on The Situationist. 

Here is an abstract and excerpts from a fascinating article (forthcoming, Psychological Science – pdf of draft here) co-authored by Situationist friend Krishna Savani (Columbia) and Aneeta Rattan (Stanford).  Their article examines how “a choice mindset increases the acceptance and maintenance of wealth inequality.”

* * *

Abstract: Wealth inequality has significant psychological, physiological, societal, and economic costs. We investigate how seemingly innocuous, culturally pervasive ideas can help maintain and further wealth inequality. Specifically, we test whether the concept of choice, which is deeply valued in American society, leads people to act in ways that maintain and perpetuate wealth inequality. Choice, we argue, activates the belief that life outcomes stem from personal agency, not from societal factors, leading people to justify wealth inequality. Six experiments show that when choice is highlighted, people are less disturbed by facts about the existing wealth inequality in the U.S., more likely to underestimate the role of societal factors in individuals’ successes, less likely to support the redistribution of educational resources, and less likely to tax the rich even to resolve a government budget deficit crisis. The findings indicate that the culturally valued concept of choice contributes to the maintenance of wealth inequality.

* * *

Wealth inequality has substantial negative consequences for societies, including reduced well-being (Napier & Jost, 2008), fewer public goods (Frank, 2011; Kluegel & Smith, 1986), and even lower economic growth (Alesina & Rodrik, 1994). Despite these well-known negative consequences, high levels of wealth inequality persist in many nations. For example, the U.S. has the greatest degree of wealth inequality among all the industrialized countries in terms of the Gini Coefficient (93rd out of 134 countries; CIA Factbook, 2010). Moreover, wealth inequality in the U.S. substantially worsened in the first decade of the 21st century, with median household income in 2010 equal to that in 1997 (U.S. Census Bureau, 2011), although per-capita GDP increased by 33% over the same period (Bureau of Economic Analysis, 2011), indicating that all of the gain in wealth was concentrated at the top end of the wealth distribution.

A large majority of Americans disapprove of a high degree of wealth inequality (Norton & Ariely, 2011), for example, when the top 1% of people on the wealth distribution possess 35% of the nation’s wealth, as was the case in the U.S. in 2007 (Wolff, 2010). Instead, people prefer a more equal distribution of wealth that includes a strong middle class, such as when the middle 60% of people own approximately 60% of the nation’s wealth, rather than only the 15% that they owned in the U.S. in 2007. If people are unhappy with wealth inequality, then policies that reduce this inequality should be widely supported, particularly in times of increasing wealth inequality. However, Americans often oppose specific policies that would remedy wealth inequality (Bartels, 2005). For example, taxation and redistribution—taxing the rich and using the proceeds to provide public goods, public insurance, and a minimum standard of living for the poor—is probably the most effective means for reducing wealth inequality from an economic perspective (Frank, 2011; Korpi & Palme, 1998). However, most Americans, including working class and middle class citizens, have supported tax cuts even for the very rich and oppose government spending on social services that would mitigate inequality (Bartels, 2005; Fong, 2001). What factors explain thisinconsistency between a general preference for greater wealth equality and opposition to specific policies that would produce it? We investigate whether people’s attitudes toward wealth inequality and support for policies that reduce wealth inequality are influenced by the concept of choice.

Choice is a core concept in U.S. American culture . . . .

Recent research suggests that the concept of choice decreases support for societally beneficial policies (e.g., a tax on highly polluting cars) but increases support for policies furthering individual rights (e.g., legalizing drugs; Savani, Stephens, & Markus, 2011). Historical analyses also suggest that Americans often use the concept of choice to justify inequality, arguing that the poor are poor because they made bad choices (Hanson & Hanson, 2006; see also Stephens & Levine, 2011). Building upon this work, we theorized that the assumption that people make free choices, when combined with the fact that some people turned out rich and others poor, leads people to believe that inequality in life outcomes is justified and reasonable. Therefore, when people think in terms of choice, we hypothesized that they would be less disturbed by wealth inequality and less supportive of policies aimed at reducing this inequality. . . .

* * *

You can download a pdf of the draft here.

Related Situationst posts:

You can review hundreds of Situationist posts related to the topic of “choice myth” here or to the topic of inequality here.

Posted in Abstracts, Choice Myth, Distribution, Social Psychology | Tagged: , , , , | 2 Comments »

Sheena Iyengar on the Art of Choosing

Posted by The Situationist Staff on July 5, 2011

Situationist friend Sheena Iyengar studies how we make choices — and how we feel about the choices we make. At TEDGlobal, she talks about both trivial choices (Coke v. Pepsi) and profound ones, and shares her groundbreaking research that has uncovered some surprising attitudes about our decisions.

Relate Situationist posts:

To review the hundreds of Situationist posts discussing the “Choice Myth” click here.,

 

Posted in Choice Myth, Marketing, Social Psychology, Video | Tagged: , , , , | 1 Comment »

Tamara Piety on Market Manipulation

Posted by The Situationist Staff on September 18, 2010

In response to Adam Beneforado’s terrific post this week, “Breaking Up Is Easy to Do: When Corporations Dump Consumers,” Situationist friend Tamara Piety wrote another excellent comment, a portion of which we’ve posted below.

* * *

To me, one of most offensive examples of this type of channeling is the price discrimination practice involved in rebate/coupon schemes. Rebates and coupons are used as a way to expand the customer base by attracting a few more customers by virtue of the illusion (for most) of a lower price point. We see it in electronics all the time – “Laptop $999 [with $250 rebate]” There are several things at work here at once. One is that the seller ( or whoever actually pays the rebate) has your money for some period of time ranging from 30 days to 6 months as an interest free loan. Second is the anchoring effect that makes $999 seem some how much less than $1,000. But the principle objection for me is that they are actually creating a staggered pricing program. Again, this might not be a problem if it simply involved selling to as many customers as possible on the basis of the price that they will want to buy. The problem is that in order to do this companies make the process of obtaining the lower price (i.e. the with the rebate price), much more onerous than it appears to be through a variety of devices that are intended to take advantage of the psychological effect of the lower price and then relying on consumer inertia, lack of attention, recalculation of the efforts and so forth to avoid actually making good on that promise. Getting the rebate usually involves fair amount of time and effort (filling out the rebate form, mailing it back, waiting for the check, etc.) and uncertainty (if you fail to observe deadline, miss a requirement in the fine print, fail to send in the original, etc.) you lose. None of these difficulties are simply bureaucratic obstacles which have the ancillary effect of depressing the number of rebates redeemed. They are intended to have this effect. And sometimes the rebate is “paid” in the form of a “gift card” rather than in a cash or check which further draws out the redemption process by providing an expiration date for the card, limitations on where it can be used, or even a restriction limiting its use to other products from the same seller.

Every single step in this process is calculated to generate some failures to complete the redemption process so that the customer doesn’t actually receive the advertised price. And this is seen as a perfectly legitimate set of strategies to maximize the sales of the same good across a range of consumers – from those who don’t care about the rebate, to those who do and intend to redeem and then fail to do so, to those who intend to try redeem and try to do so but fail to successfully jump through all of the hoops of the conditions imposed, to those, finally, who intend to redeem and successfully do so. Some percentage of the last three groups are consumers who presumably wouldn’t have brought the product but for the promised (but in at least two instances) undelivered rebate. And the difference between groups 2 and 3 and group 4 are explained by the seller as being entirely attributable to some character “flaw” (lack of attention, lack of diligence, etc.) or a “choice” not to redeem when that “choice” has been structured to take advantage of consumers’ psychological vulnerabilities (or their dawning realization that the time and effort required to pursue the rebate is not really “free” and thus it might be more rational to abandon the effort.) It is disingenuous and unfair to describe these consumer “choices” as unmediated.

* * *
Bottom line all these tropes – “control,” “choice,” “information,” as they are currently used and understood by many, operate to absolve the seller of any responsibility for their role in driving these choices even as several full-blown, mature industries’ very existence (advertising, marketing, PR) is predicated on the proposition that it is possible to manipulate and channel consumer choices. It is a feat of sleight-of-hand to argue (in essence) that entire industries’ efforts are of no consequence whatsoever even as billions of dollars are spent in plain sight on those efforts.

* * *

To read Piety’s entire comment, click here. Her focus is particularly timely in light of the fact that another Situationist friend, Elizabeth Warren, accepted President Obama’s invitation this week to set up a a consumer financial watchdog and warned yesterday that the time for financial “tricks and traps” was over.

The themes of market manipulation and the “choice myth” are common on the Situationist.  In addition to the sample of related posts linked at the bottom of Adam’s post,  here are few more:  Taking Behavioralism Seriously (Part I) – Abstract and Top Ten List; Promoting Smoking through SituationThe Big Game: What Corporations Are Learning About the Human Brain,” “Warren on the Situation of Credit,” “The Financial Squeeze: Bad Choices or Bad Situations?,” “No Contract for Old Men,” The Situation of Subprime Mortgage Contracts – Abstract.”

The first scholarly article (part of  a trilogy) devoted to these issues is Taking Behavioralism Seriously: The Problem of Market Manipulation (74 N.Y.U.L. Rev. 363 (1999)) available for free download on SSRN.

Posted in Behavioral Economics, Choice Myth, Life, Marketing, Public Relations, Situationist Contributors | Tagged: , , , , , | 1 Comment »

Renata Saleci on “The Paradox of Choice”

Posted by The Situationist Staff on August 9, 2010

A common theme of The Situationist and of the scholarship of Situationist Contributors is the “choice myth” in western culture.   Here is a video of Professor Renata Saleci, who employs sociology, psychoanalysis, and philosophy, to offer a slightly different version of that familiar theme.

For a sample of related Situationist posts, go to “Sheena Iyengar on the Situation of Choosing,” and the  links in that post.   To review the hundreds of Situationist posts discussing the “Choice Myth” click here.,

Posted in Choice Myth, Cultural Cognition, Deep Capture, Ideology, Video | Tagged: , | 1 Comment »

Sheena Iyengar’s Situation and the Situation of Choosing

Posted by The Situationist Staff on March 7, 2010

Last week, Situationist friend, Sheena Iyengar, was interviewed on the Diane Rehm Show (American University Radio) about her new book, “The Art of Choosing.”

The show’s description is as follows:  “The power of choice: Understanding the motivations, biases, and cultural influences that determine the choices, large and small, we make in our lives.”  As interesting as those issues are, the interview itself is at its best when Sheena discusses her own remarkable situation and how that influenced her research.

You can listen to the entire podcast here.

* * *

For a sample of related Situationist posts, see “Sheena Iyengar on ‘The Multiple Choice Problem,'”Can’t Get No Satisfaction!: The Law Student’s Job Hunt – Part II,” “Dan Gilbert on the Situation of Our Decisions,”and “Just Choose It! “  To review all of the Situationist posts that discuss the problem with, or illusion of, choices, click here.


Posted in Book, Choice Myth, Classic Experiments, Life, Podcasts, Social Psychology | Tagged: , , , , , | 2 Comments »

Nicole Stephens on “Choice, Social Class, and Agency”

Posted by The Situationist Staff on December 31, 2009

Nicole Stephens is a Ph.D. student in Social Psychology at Stanford University. Her research focuses on the ways in which sociocultural contexts – such as those delineated by social class, race, and gender – shape the experience and the consequences of choice. In one line of research, she examines how people of different social classes define and respond to choice. In a second line of research, she examines how the common American belief that individual choice drives all actions blinds people to the sociocultural sources of inequality.

At the third annual conference on Law and Mind Sciences, which took place im March of 2009, Stephens’s fascinating presentation was titled “Choice, Social Class, and Agency.” Here’s the abstract:

Across disciplines we tend to assume that choice is a fundamental or “basic” unit of human behavior, and that behavior is a product of individual choice. In my talk, I will present a series of lab and field studies that question these assumptions about behavior, and suggest that these assumptions reflect primarily the experiences of college-educated, or middle-class, Americans, who tend to have access to a wealth of choices and an array of quality options among which to choose. I will discuss the implications of these assumptions for the (mis)understanding of behavior across diverse contexts.

You can watch her presentation on the three (roughly 9-minute) videos below.

* * *

* * *

* * *

* * *

For more information about the Project on Law and Mind Sciences, click here.  For a sample of related Situationist posts, see “The Blame Frame – Abstract,” “The Situation in New Orleans,”Examining Why Estimated “Costs” of Racial Inequality Vary by Race,” and “Naïve Cynicism in Election 2008: Dispositionism v. Situationism?.”  To review all of the Situationist posts that discuss the problem with the illusion of choices, click here.

Posted in Abstracts, Choice Myth, Deep Capture, Ideology, Social Psychology | Tagged: , , , , | 3 Comments »

Sheena Iyengar on “The Multiple Choice Problem”

Posted by The Situationist Staff on December 4, 2009

Sheena Iyengar is a professor in the Management Division of the Columbia Business School. One of the world’s experts on choice, Professor Iyengar received a dual degree from the University of Pennsylvania in 1992, consisting of a B.S. in Economics from the Wharton School of Business and a B.A. in psychology with a minor in English from the College of Arts and Sciences. In 1997 she completed her Ph.D. in social psychology from Stanford University. Her dissertation, entitled “Choice and its Discontents,” received the prestigious Best Dissertation Award for 1998 from the Society of Experimental Social Psychology.  Since then, she has published many articles in academic journals and her research has been commonly cited in the popular media.  Iyengar is at work on a book exploring the mysteries of choice in everyday life.

At the third annual conference on Law and Mind Sciences, which took place im March of 2009, Professor Iyengar’s outstanding presentation was titled “The Multiple Choice Problem.”  Here’s the abstract:

It is a common supposition in modern society that the more choices, the better—that the human ability to manage, and the human desire for, choice is infinite. From classic economic theories of free enterprise, to mundane marketing practices that provide customers with entire aisles devoted to potato chips or soft drinks, to highly consequential life decisions in which people contemplate multiple options for medical treatment or investment opportunities for retirement, this belief pervades our institutions, norms, and customs. In this era of abundant choice, there are several dilemmas that people face: How do you choose given the sheer number of domains in which you now have the ability to choose? And in any given domain, what are the ramifications of being confronted with more options than ever before? In this talk, I will describe decisions we need to make that vary in significance from jams at a supermarket to life-or-death situations, looking at how the exercise of choosing and the availability of numerous options affect decision quality and happiness with the decision outcome.

You can watch her presentation on the four (roughly 9-minute) videos below.

* * *

* * *

* * *

* * *

* * *

For more information about the Project on Law and Mind Sciences, click here.  For a sample of related Situationist posts, see “Can’t Get No Satisfaction!: The Law Student’s Job Hunt – Part II,” “Dan Gilbert on the Situation of Our Decisions,”and “Just Choose It!”  To review all of the Situationist posts that discuss the problem with, or illusion of, choices, click here.

Posted in Abstracts, Choice Myth, Positive Psychology, Social Psychology, Video | Tagged: , , | 4 Comments »

The Situation of Reason

Posted by The Situationist Staff on April 15, 2009

pantyhose-displayIn the mid-1970s, Situationist contributor Timothy Wilson with Richard Nisbett conducted one of the best known social psychology experiments of all time. It was strikingly simple and involved asking subjects to assess the quality of hosiery. Situationist contributors Jon Hanson and David Yosifon have described the experiment this way:

Subjects were asked in a bargain store to judge which one of four nylon stocking pantyhose was the best quality. The subjects were not told that the stockings were in fact identical. Wilson and Nisbett presented the stockings to the subjects hanging on racks spaced equal distances apart. As situation would have it, the position of the stockings had a significant effect on the subjects’ quality judgments. In particular, moving from left to right, 12% of the subjects judged the first stockings as being the best quality, 17% of the subjects chose the second pair of stockings, 31% of the subjects chose the third pair of stockings, and 40% of the subjects chose the fourth—the most recently viewed pair of stockings. When asked about their respective judgments, most of the subjects attributed their decision to the knit, weave, sheerness, elasticity, or workmanship of the stockings that they chose to be of the best quality. Dispositional qualities of the stocking, if you will. Subjects provided a total of eighty different reasons for their choices. Not one, however, mentioned the position of the stockings, or the relative recency with which the pairs were viewed. None, that is, saw the situation. In fact, when asked whether the position of the stockings could have influenced their judgments, only one subject admitted that position could have been influential. Thus, Wilson and Nisbett conclude that “[w]hat matters . . . is not why the [position] effect occurs but that it occurs and that subjects do not report it or recognize it when it is pointed out to them.”

One of the core messages of more recent brain research is that most mental activity happens in the automatic or unconscious region of the brain. The unconscious mind is the platform for a set of mental activities that the brain has relegated beyond awareness for efficiency’s sake, so the conscious mind can focus on other things. In his book, “Strangers to Ourselves,” Timothy Wilson notes that the brain can absorb about 11 million pieces of information a second, of which it can process about 40 consciously. The unconscious brain handles the rest.

The automatic mind generally takes care of things like muscle control. But it also does more ethereal things. It recognizes patterns and construes situations, searching for danger, opportunities or the unexpected. It also shoves certain memories, thoughts, anxieties and emotions up into consciousness.

A lot has been learned about how what we think we know about what moves us is wrong. And much has also been learned about how what we don’t know we know can influence us. Psychologist Susan Courtney has an absolutely terrific article in Scientific American titled “Not So Deliberate: The decisive power of what you don’t know you know.” We excerpt portions of her article below.

* * *

When we choose between two courses of action, are we aware of all the things that influence that decision? Particularly when deliberation leads us to take a less familiar or more difficult course, scientists often refer to a decision as an act of “cognitive control.” Such calculated decisions were once assumed to be influenced only by consciously perceived information, especially when the decision involved preparation for some action. But a //www.timrylands.com/blog/2007/02/recent paper by Hakwan Lau and Richard Passingham, “Unconscious Activation of the Cognitive Control System in the Human Prefrontal Cortex,” demonstrates that the influences we are not aware of can hold greater sway than those we can consciously reject.

Biased competition

We make countless “decisions” each day without conscious deliberation. For example, when we gaze at an unfamiliar scene, we cannot take in all the information at once. Objects in the scene compete for our attention. If we’re looking around with no particular goal in mind, we tend to focus on the objects most visually different from their surrounding background (for example, a bright bird against a dark backdrop) or those that experience or evolution have taught us are the most important, such as sudden movement or facial features — particularly threatening or fearful expressions. If we do have a goal, then our attention will be drawn to objects related to it, such as when we attend to anything red or striped in a “Where’s Waldo” picture. Stimulus-driven and goal-driven influences alike, then, bias the outcome of the competition for our attention among a scene’s many aspects.

The idea of such biased competition (a term coined in 1995 by Robert Desimone and John Duncan, also applies to situations in which we decide among many possible actions, thoughts or plans. What might create an unconscious bias affecting these types of competition?

For starters, previous experience in a situation can make some neural connections stronger than others, tipping the scales in favor of a previously performed action. The best-known examples of this kind of bias are habitual actions (as examined in a seminal 1995 article by Salmon and Butters and what is known as priming.

Habitual actions are what they sound like — driving your kids to school, you turn right on Elm because that’s how you get there every day. No conscious decision is involved. In fact, it takes considerable effort to remember to instead turn left if your goal is to go somewhere else.

Priming works a bit differently; it’s less a well-worn route than a prior suggestion that steers you a certain way. If I ask you today to tell me the first word that comes to mind that starts with the letters mot and you answer mother, you’ll probably answer the same way if I ask you the same thing again four months from now, even if you have no explicit recollection of my asking the question. The prior experience primes you to repeat your performance. Other potentially unconscious influences are generally emotional or motivational.

Of course, consciously processed information can override these emotional and experience-driven biases if we devote enough time and attention to the decision. Preparing to perform a cognitive action (“task set”) has traditionally been considered a deliberate act of control and part of this reflective, evaluative neural system. (See, for example, the 2002 review by Rees, Kreiman and Koch — pdf download.) As such, it was thought that task-set preparation was largely immune to subconscious influences.

We generally accept it as okay that some of our actions and emotional or motivational states are influenced by neural processes that happen without our awareness. For example, it aids my survival if subliminally processed stimuli increase my state of vigilance — if, for example, I jump out of the way before I am consciously aware that the thing at my feet is a snake. But we tend to think of more conscious decisions differently. If I have time to recognize an instruction, remember what that means I’m supposed to do and prepare to make a particular kind of judgment on the next thing I see, then the assumption is that this preparation must be based entirely on what I think I saw — not what I wasn’t even aware of.

Yet Lau and Passingham have found precisely the opposite in their study — that information we’re not aware of can more strongly influence even the most deliberative, non-emotional sort of decision even more than does information we are aware of.

Confusing cues

Lau and Passingham had their subjects perform one of two tasks: when shown a word on a screen, the subjects had to decide either a) whether or not the word referred to a concrete object or b) whether or not the word had two syllables. A cue given just before each word — the appearance of either a square of a diamond –lau06-fig1.jpg indicated whether to perform the concrete judgment task or the syllables task. These instruction cues were in turn preceded by smaller squares or diamonds that the subjects were told were irrelevant. A variation in timing between the first and second cues determined whether the participants were aware of seeing both cues or only the second.

As you would expect, the task was more difficult when the cues were the not same — that is, when a diamond preceded a square or a square a diamond. The surprising finding was that this confusion effect was greater when the timing between the cues was so close that the participants didn’t consciously notice the first cue. When the cues were mixed but the subjects were consciously aware of only the second instruction, their responses — and their brain activity as measured by functional magnetic resonance imaging (fMRI) — indicated that the “invisible” conflicting cue had made them more likely to prepare to do the “wrong” task. Although similar effects have been shown on tasks that involved making a decision about the appearance of the image immediately following the “invisible” image, this is the first time this effect has been demonstrated for complex task preparation.

It may not be surprising that we juggle multiple influences when we make decisions, including many of which we are not aware — particularly when the decisions involve emotional issues. Lau and Passingham, however, show us that even seemingly rational, straightforward, conscious decisions about arbitrary matters can easily be biased by inputs coming in below our radar of awareness. Although it wasn’t directly tested in this study, the results suggest that being aware of a misleading cue may allow us to inhibit its influence. And the study makes clear that influences we are not aware of (including, but not limited to, those brought in by experience and emotion) can sneak into our decisions unchecked.

* * *

Susan Courtney is an associate professor of psychology at Johns Hopkins University, where she runs the Courtney Lab of Cognitive Neuroscience and Working Memory.  To read some related Situationist posts, see “The Situation of Confabulation,” “The Situation of Constitutional Beliefs – Abstract,” “Social Psychology and the Unconscious: The Automaticity of Higher Processes,” “Jonathan Haidt on the Situation of Moral Reasoning,” “The Unconscious Situation of our Consciousness – Part IV,”and “Unconscious Situation of Choice.”

This post was originally published in November of 2007.

Posted in Book, Choice Myth, Classic Experiments, Illusions, Situationist Contributors, Social Psychology | Tagged: , , , , | 4 Comments »

Situation of Romantic Preferences – Abstract

Posted by The Situationist Staff on June 21, 2008

Image by Vincent BrownRussell Robinson has posted his essay, “Structural Dimensions of Romantic Preferences” (forthcoming 76 Fordham Law Review 787-2819 (2008) on SSRN. Here’s the abstract.

* * *

In this essay, I make two main points: First, I call for a focus on the impact of structural conditions on preferences regarding intimacy. We tend to think our preferences are natural and fixed when, in fact, they may be more plastic and susceptible to structural influences than we imagine. To illustrate this theme, I examine a few structures that channel our preferences, namely, racial screening mechanisms on Internet dating web sites and sex segregation in queer social spaces. Second, I provide a warning against uncritical celebrations of increasing interracial intimacy as a sign of reduced prejudice and social progress. Our celebrations should be tempered by the awareness that race structures even our most intimate relationships. Although two people have crossed racial lines and may have even committed to spending their lives together, we cannot easily conclude that they have transcended race. Because race and gender intersect to determine an individual’s value in the romantic marketplace, the two partners are unlikely to be similarly situated in terms of their options for leaving the relationship should it become unhappy. For instance, black heterosexual men enjoy greater options for interracial coupling than do black heterosexual women. Further, people of color who are in interracial relationships may have to suffer racialized microaggressions in order to maintain the relationship. Yet these subtle insults may escape the awareness of the white partner in the relationship, who might not intend to cause any harm or see the comments as racially offensive. One source of such racialized harms is likely to arise from racial disagreements in perceiving discrimination. Because black people and white people tend to view allegations of discrimination through fundamentally different lenses, they are likely to disagree as to the existence of discrimination, even when they are in an intimate relationship.

This essay allows me to extend the analysis from three of my prior publications and explore their intersections. First, I consider whether a proposal I made regarding expressions of racial preference in casting advertisements might be applied to such preferences in the online dating context. Second, I extend to the romantic arena a phenomenon that I identified as “perceptual segregation,” previously examined primarily in the workplace. Third, I have previously argued that, in predominantly white and gay romantic marketplaces, men of color face pressure to conform to certain racialized sex roles, such as the “aggressive black top” and the “submissive Asian bottom.” In the final part of this essay, I present an empirical study of online dating trends that tests this argument.

Posted in Abstracts, Choice Myth, Life | Tagged: , , , , | Leave a Comment »

The Rational Choice Myth – Abstract

Posted by The Situationist Staff on April 18, 2008

by Erwin Boogert on Flickr

Michael Dorff recently posted his interesting paper, “The Rational Choice Myth: The Selection and Compensation of Critical Performers,” on SSRN. Here’s the abstract.

* * *

Some positions within an organization wield unusual impact over the entity’s success. The decision makers who hire these critical performers face a daunting task: to distinguish among closely comparable finalists in a context where small differences in talent can produce enormous outcome divergences. I apply research from psychology and behavioral law and economics to argue that decision makers demonstrate unwarranted confidence in their ability to distinguish among nearly identical candidates. The illusion of validity, representativeness bias, insensitivity to predictability, and the fundamental attribution error all impede decision makers’ ability to make these fine distinctions. Once they have made a selection, cognitive dissonance induces inappropriate confidence in the outcome’s validity and promotes excessive compensation. Involving a group in the decision may worsen these effects by imbuing outcomes with the false veneer of market legitimacy through social cascades and by discouraging contrary views throug hexcessive consensus or groupthink.

I examine two types of critical performers with these insights: professional baseball players (where individual contributions to the enterprise can be measured directly) and public company CEOs (where they cannot). I conclude that in both contexts, these phenomena produce inefficient selection and compensation outcomes. While the relative absence of externalities argues against mandatory regulation in baseball, I propose changes in private ordering that should improve efficiency. In the corporate context, I argue that regulation is called for and propose a combination of mandatory compensation caps linked to firm size and a reverse auction among CEO finalists to determine the successful candidate.

Posted in Abstracts, Choice Myth, Situationist Sports, Social Psychology | Tagged: , , , , , , , , | Leave a Comment »

 
Follow

Get every new post delivered to your Inbox.

Join 874 other followers

%d bloggers like this: