Dan Ariely's Blog, page 62

We've seen numerous examples of how companies create an illusion of free choice when in fact they want us to choose one option over the other. The power of defaults takes advantage of our laziness and fear of making any changes when it comes to making complex, difficult, or big decisions.

Hitler seems to have had a few of these tricks up his sleeve as well, as seen here in this 1938 voting ballot:

Translation: "Referendum and Großdeutscher Reichstag; Ballot; Do you agree with the reunification of Austria with the German Reich that was enacted on 13 March 1938 and do you vote for the party of our leader; Adolf Hitler?; Yes; No"

Wealth Inequality in America

Perform the following thought experiment. Remove yourself for a moment from your present socioeconomic circumstances and imagine that you are to be replaced randomly into society at any class level.

Now, before you know your particular place in society you are told that it is within your powers to redistribute the wealth of that society in any way that you choose.  What distribution would you choose? This famous thought experiment is the basis of political philosopher John Rawls, as outlined in his highly influential 1971 work, "A Theory Of Justice," in which he argues that the lowest class should be made as well off as possible. But this of course assumes that we all come to the same conclusion when we perform the thought experiment ourselves. To test this, Mike Norton and I recently conducted  a study in which we asked Americans to first guess at the distribution of wealth in the United States, and then we asked them to perform the thought experiment and lay out what they think would be the ideal distribution of wealth if they were to enter society and be placed randomly in a class.

Here is what we found:

As you can see from the figure, participants rather badly estimated the current state of wealth disparity! Furthermore, they offered an ideal wealth distribution (under a "veil of ignorance") that was even more different (and more equal) relative to the current state of affairs.

What this tells me is that Americans don't understand the extent of disparity in the US, and that they (we) desire a more equitable society.  It is also interesting to note that the differences between people who make more money and less money, republicans and democrats, men and women — were relatively small in magnitude, and that in general people who fall into these different categories seem to agree about the ideal wealth distribution under the veil of ignorance.

Maybe this suggests that when there are no labels, and we think about the core of our morality in abstract terms (and under the veil of ignorance), we are actually very similar?

In Chile last June, I had the opportunity to spend some time with Felipe Kast, the new government's minister of planning, and a few of his compadres. (We also went dancing, but that is another story.) One of the topics we talked about was the Chilean retirement saving plan.

By law, 11% of every employee's salary is automatically transferred into a retirement account. Employees select their preferred level of risk, with the following restrictions: They may not choose either 100% equities or...

When going on a first date, we try to achieve a delicate balance between expressing ourselves, learning about the other person, but also not offending anyone — favoring friendly over controversial – even at the risk of sounding dull. This approach might be best exemplified by an amusing quote from the film Best in Show: "We have so much in common, we both love soup and snow peas, we love the outdoors, and talking and not talking. We could not talk or talk forever and still find things to not...

The new school year is just starting, and as I decide what tasks to give my students, I can't help but think about their potential to use essay mills.

Essay mills are companies whose sole purpose is to generate essays for high school and college students (in exchange for a fee, of course).  Sure, essay mills claim that the papers are meant just to help the students write their own original papers, but with names such as echeat.com, it's pretty clear what their real purpose is.

Professors in...

Popular online dating site OkCupid recently released some numbers users reported regarding their sex lives. One interesting correlation was between smart phone usage and number of sexual partners. As you see below, women iPhone users (at the age of 30) report having had 12.3 sexual partners, over twice as many as women Android users. Male smart phone users show a similar jump: from 6.0 sexual partners on Android to 10 on the iPhone. Blackberry users fall almost exactly in the middle.

The...

One of the most general principles of human decision making is that we use relativity as a way to figure out how much we value things. We see a sale sign and the comparison of the current price to a more expensive past price makes us think that we are standing in front of a good deal.  We see a modestly prices sweater next to a much more expensive one and we reason that is it a better deal for the money. And so on.

Relativity is not always the right strategy for figuring out how much to value ...

The Magic of Procrastination

Oscar Wilde once said, "I never put off till tomorrow what I can do the day after." As a university professor, I constantly see Wilde's words put into action. Each fall students arrive to the first day of class determined to meet deadlines and stay on top of their assignments. And each fall the human weakness to procrastinate gets the best of them. After a few years of witnessing this behavior, my colleague Klaus Wertenbroch and I worked up a few studies hoping to ...

The dark side of "Productivity Enhancing Tools"

Email, Facebook, and Twitter have greatly enhanced the ways we communicate. These handy modes of communication allow us to stay in touch with people all over the world without the restrictions of snail mail (too slow) or the telephone (is it too late/early to call?). As great as these communication tools are, they can also be major time-sinks. And even those of us who recognize their inefficiencies still fall into their trap. Why is this?

I think ...

For the last 2 years I have been positing this video in celebration of the new school year, and all the hopes and promises we make to ourselves that this year things will be different….

Somewhat unsurprisingly, this video is still as relevant as always.

Happy new school year

Dan