Dan Ariely's course has wrapped up, and here I'm posting my notes for the last three weeks. Fourth week is about labor and motivation; fifth week is about self-control; and the sixth week is about emotion. The studies are all available with a little searching.
Feeling Good about Giving: The Benefits (and Costs) of Self-Interested Charitable Behavior - People who feel happy give more, and those who give more are happier. Advertising the emotional rewards of giving does not reduce the tendency to give, but further research is necessary to disentangle between the costs and benefits of self-interested giving.
The “IKEA Effect”: When Labor Leads to Love - People value more the products of their labor only when they are able to complete their labor - that is, they can see the fruits of their work. The effect occurs even for those who do not have an affinity for "do-it-yourself" projects.
Large Stakes and Big Mistakes - Small incentives or incentives given where there were none before may increase performance, but past a certain threshold increased stakes increases motivation to the point where there are perverse effects on performance.
Effort for Payment - In the realm of effort and payment, one may find oneself in a monetary or social market. Monetary markets are more sensitive to the economics of compensation, while social markets are independent of the magnitude of compensation.
A Fine is a Price - At a day-care, a fine was introduced for parents who are late in picking up in their children. The parents possibly interpreted the fine as a cost in the sense of a monetary market and the number of latecomers per day shot up. The increased levels remained even after the policy regarding the fine was rescinded.
Man’s search for meaning: The case of Legos - When there is meaning to the tasks that people are assigned to do, they are happier at their jobs and are more productive
Week 5:
Procrastination, Deadlines, and Performance: Self-control by Precommitment -
People are willing to self-impose deadlines to avoid procastination, even if it is costly. However, people space deadlines suboptimally
A gradient of childhood self-control predicts health, wealth, and public safety -
Children with higher self-control ended up wealthier, healthier, and less likely to engage in crime in adulthood.
Counteractive Self-Control in Overcoming Temptation -
When the decision of undergoing an activity is threatened, counteractive self-control kicks in to increase the perceived value of the activity and ensure that motivation is maintained. This occurs when the cost of the action is moderate, tempting alternatives to the action are moderate, and before the performance of the activity. The counteractive self-control action motivates individuals to bind themselves to restrictive agreements, and delay rewards in order to ensure compliance.
The significance of self-control - Self control is a significant predictor of future welfare even after controlling for intelligence and family background; however, people struggle with wanting and in wanting to want other things.
Personal Decisions Are the Leading Cause of Death - The cause of many deaths can be said to be due to personal decisions; these deaths could have been avoided if a readily available alternative had instead been chosen. Over 80% of the deaths attributable to personal decisions in 2000 were due to smoking and being overweight. In 1900, just under 5% of deaths could be attributed to personal choices.
Rewards Separate Neural Systems Value Immediate and Delayed Monetary - Impulsive behavior is driven by limbic activation, while non-impulsive behavior is associated with the activation of regions of the brain responsible for higher level deliberation.
Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving - Households that are saving too little may be because of bounded rationality, self-control, procrastination (which pro-duces inertia), and nominal loss aversion. SMART is a methodology encouraging increased savings using principles
of behavioral economics.
Week 6:
Dread Risk, September 11, and Fatal Traffic Accidents - In avoiding the risk of being caught up in an incident similar to the events of 9/11, more Americans took to driving - thus increasing the number involved in fatal vehicular accidents. The number of those killed this way even exceeded the total number of fatalities in the four flights that were hijacked.
The Peculiar Longevity of Things Not So Bad - When a stimulus reaches a threshold when it can be characterized as intense, it causes people to raise defensive measures to attenuate it. In cases of behavior this results in counteractive self-control, and in cases of hedonic states quicker abatement. This can result in situations where someone ends up hating another for a less grave offense and forgiving (or even liking) yet another for a bigger offense.
Psychic Numbing and Mass Atrocity - Crimes committed against a big number of people do not grab our attention and inspire our actions as they do crimes against an individual. This makes our moral intuitions not trustworthy in dealing with cases like genocide. We must find a way to treat cases of mass atrocity with the gravity that is commensurate to our belief that every life is equal and of great importance.
Emotions in Economic Theory and Economic Behavior - Economic models need to take into account the impact of deeply-rooted affective states (drives, emotions, passions) in individuals' decision-making process. There is a big gap between the actions of people when they are in a "hot" and "cold" state, and their ability to
predict their behavior when in a particular state while they are in the opposite one is impaired. These empathy gaps can occur for hunger, thirst, sexual arousal, anxiety, curiosity, and pain.
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