My musings about human behavior and how we can design the world around us to better accommodate real human needs.
Saturday, July 16, 2011
Instinct Blindness
Monday, July 11, 2011
Teams and Specialization
Freakonomics wants you to quit.
Saturday, July 09, 2011
Compensation v Incentives
Let's assume for a moment that married people have approximately $100,000 worth of extra happiness over their lifetime (this is the population average for the U.S.). So if you were creating an ideal tax system, would your goal be to compensate for this by creating a marriage penalty that over a lifetime would give a single person an extra $100,000? Or would you create an incentive for people to get married by giving a tax deduction for it and expect that the lost tax revenue is worth the extra happiness you have created. But would marriages that are pushed by tax incentives create the same happiness as natural ones? Maybe you are decreasing happiness because you are motivating some mad marriages. Wow, this social engineering is tough.
There was a similar debate on age. We have all heard that it is important to invest when you are young because of the magic of compound interest. This article complements that thought by suggesting a high consumption tax on status-building goods. If one person buys a status-building product, he/she gets happier but everyone else gets less happy. So the aggregate societal happiness goes down. We should discourage this (according to one argument) by having high taxes on these goods. It is worse when young people do it because it creates a lifetime of one-ups-man-ship and middle aged people feel worse when younger people have status products that they don't. So we could have high taxes on status-building products that are graduated so that we let older people enjoy the money they have earned but tax the young people;s status consumption and try to shift their money into investment.
The papers really are putting up strawmen as examples of what governments could do. None of the authors are suggesting actually doing any of this. But it does get you thinking.
Thursday, July 07, 2011
Jury awards for pain and suffering
On the other hand, chronic issues that we never habituate to are underestimated by juries and get small pain and suffering awards. Things like chronic pain continue to ruin that good meal for the rest of your life. But it is less salient to juries, so the awards are smaller.
He recommends creating guidelines based on a series of detailed studies that measure (at a general level) how bad different kinds of injuries/conditions are over time and creating award guidelines that reflect the experience the injured party will really go through, not just what it seems like to an ignorant jury.
Something I had never though about. But it makes sense. For a deeper and broader analysis, here is a Yale Law School prize winning paper on the topic.
Subtle Persuasion
Tuesday, July 05, 2011
Quieting the Self
Monday, July 04, 2011
The pursuit of happiness
As many of you know by now, I am a dedicated reader of the happiness literature. Not the touchy-feely stuff, but the real academic scholarship on the subject. Despite large individual differences, there are several insights that are consistent around the world.
The old stuff you already know. In brief, long term happiness is frequently based on who you are comparing yourself to, which is usually
- your work and life community (office, church, neighbors),
- celebrities (which us unhealthy because they are all rich and beautiful),
- your own past (the most memorable parts, which are often extremes of the good and bad),
- the previous generations you can remember (parents, and for some of us grandparents).
This is why when national GDP or standards of living are growing fast, we tend to be happier, but then if it then plateaus, we lose that extra happiness. It’s not being well off that makes you happy, its comparative well-being that matters.
Some new research I have been reading lately adds to this. They discovered that we are more likely to habituate to some happy experiences than others. For example, when something is constant (the size of your home), you get really happy when you first move in, but then that happiness wears down as you get used to the new house. On the other hand, the length of your commute is hit or miss because of traffic, accidents, etc. So moving to a house that has an easier/shorter commute makes you happy for a much longer time, although the initial boost is not as large. One challenge of this is that human cognition is very focused in instant gratification. So the big initial boost of happiness from the big house usually dominates our choice of where to live. So we pick the option that gives us more short term happiness but less long term happiness.
This study also looked at easy to measure things v hard to measure things. If your happiness is more focused on the past (your own or generational comparisons), measurable things are more effective. The size of your or your parents TV in the 1980s will never change. And it is probably bigger now. So the comparison is favorable and the happiness boost will be more consistent. But if your happiness is more focused on the present (community or celebrity), then measurable things are not effective. Celebrities TVs will always be bigger than yours (just watch “Cribs” once to see what I mean). And at least one of your neighbors will always be boasting about his new big screen high-def TV. The ones with the small ones keep their mouths shut, so all we usually hear about are the ones that are bigger than ours and the comparison is not happy.
On the other hand, unmeasurable things can really make you happy, even comparing to your neighbors. So for example, volunteering at a local charity. You feel good about it and your neighbors can’t really do it “better.” Or watching a good TV show (often with your celebrities in it and maybe even watching with your neighbors). Everyone gets the same options and people all have different tastes. Listening to music, reading a good book, etc. People who enjoy these are happier because they are not always comparing. The study uses the example of investing in a better heating system or in jewelry. The heating system will give you more long term happiness, but the jewelry gives you more instant gratification, so you are more likely to think jewelry will make you happier.
Saturday, June 18, 2011
Customer experiences are more complicated than they appear
So this company (not sure of the vendor) stamps each egg with the expiration date. They understand these two competing customer requirements (expiration dates and no broken ones) and were willing to spend a little extra on their packaging process to give it to them.
Salmonella is not pretty. I'm not sure a new container design would be better at preventing breakage. So a good tradeoff I think.
Monday, June 13, 2011
Heat and revenge
Two different streams of research have found the same conclusion. When it is hot, your aggression goes up, but not in general. Mostly it is the revenge component that goes up.
One of the studies looked at baseball. The chance of a pitcher retaliating for hit batsmen is much higher in 95 degree weather than 55 degree weather.
The other study looked at indoor environments. People were more likely to view others’ actions as hostile and it lowered the threshold at which people took revenge for the hostile action.
The benefit of the baseball study is that it isolates all of the other cultural variables that interact with perceptions and actions. The benefit of the second study was that it is more ecologically valid (more like our real lives).
So if you are managing a hot workplace, whether it’s outdoors or just near hot machines and processes, this is something you have to worry about. Try to keep the temperature below the 90s. And if you can’t, take some preliminary actions to prevent revenge and hostility. That can really destroy workplace morale and productivity.