The Science of Irrational Decisions
The Rat Race Trap blog has a look at one aspect of the irrational decision-making process humans employ, based on the book Predictably Irrational by Dan Ariely. "Professor Ariely describes some experiments which demonstrated something he calls 'arbitrary coherence.' Basically it means that once you contemplate a decision or actually make a decision, it will heavily influence your subsequent decisions. That's the coherence part. Your brain will try to keep your decisions consistent with previous decisions you have made. I've read about that many times before, but what was surprising in this book was the the 'arbitrary' part. ... [In an experiment] the fact that the students contemplated a decision at a completely arbitrary price, the last two digits of their social security number, very heavily influenced what they were willing to pay for the product. The students denied that the anchor influenced them, but the data shows something totally different. Correlations ranged from 0.33 to 0.52. Those are extremely significant."
I think Im 50 / 50 on this one
Will it help me to understand why I read Slashdot instead of doing something productive with my time?
See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
define "big words". do you mean closer to "potato" or closer to "superstructure"
I reserve the right to have a physical object so I can sell it later, and recover my money.
Remember those personalized hologram ads in Minority Report? Now, if they know your SSN, they can personalize a "deal" for you at a price you might be more willing to pay for it.
"Love heals scars love left." -- Henry Rollins
How the hell did this article make it off the firehose?
There is a quote in the summary from a blog referenced. The blog is not linked to -- instead the only link is to a site (Amazon, I think) selling the book.
Where's the actual discussion of what's in the book? Where's the article (or blog entry)?
If you're going to post a book review... please, include the review. Otherwise it looks like you're just hocking a book.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
http://www.ratracetrap.com/the-rat-race-trap/irrational-decisions-anchoring-and-arbitrary-coherence.html
Editors sleeping on the job
What a sweet job
[Fuck Beta]
o0t!
People tend to forget that logic is just a set of rules. If you load it up with bad data, especially data that is driven by pure emotions, you'll rationalize yourself into neat, coherent clusterfuck. The difference between wisdom and intelligence is that the former is an a priori mental filter for bad data, the latter is just raw capacity. That's why a wise person need not follow a life based on reason alone to generally make good decisions.
Seriously..
It looks like the blog is here: http://www.ratracetrap.com/the-rat-race-trap/irrational-decisions-anchoring-and-arbitrary-coherence.html
...so when we're faced with an uncertain decision, we take cues from those around us rather than from our social insurance numbers. As a result, industries characterized by high technological uncertainty -- like those discussed on /. -- tend to be governed less by the the clarity of perfect information in competitive markets and more by inherently social processes: imitation of either past behavior or the behavior of successful competitors.
Since when is r = 0.32 anything like a strong correlation?
"A man hears what he wants to hear, and disregards the rest."
- Paul Simon, The Boxer
-kgj
Science? ...
This is exactly why I never buy anything that is not previously labeled with a price. I will negotiate but not if I have to contemplate a starting value myself.
The scary thing is... the entire English common law system (US, UK, others) is based on "arbitrary coherence", better known as precedent.
Nothing really new here. Decisions making based on anchors is a large part of why we use Planning Poker when doing our estimations. All it takes is that one guy that says everything is easy to influence everyone's brain to under-estimate a project.
And I just want to give props to kdawson (or whoever) for correcting the oversight... link to the blog is now there.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
Our brains favor consistency over correctness... we're finally coming close to understanding the biological origins of conservativism. Here's hoping this research eventually leads to a cure.
Dislike the Electoral College? Lobby your state to join the National Popular Vote Interstate Compact.
Unregulated OTC Derivatives
Good luck in the next financial meltdown.
Yours In Vladivostok,
K. T.
Apparently I'm in a very pedantic mood today.
Correlation is a measure of how well the model describes the data. So according to the summary, 33 to 52% of the variation in the data was explained by the model. Depending on the inherent variability in the criteria being evaluated, that could be very good or very bad. In my line of work that would be very bad, but for social sciences such as sociology, that is very high. It all comes down to how many variables you can control. The more control, the less variation, the higher the correlation when the model is a good fit.
Significance is a measure of the probability that the response seen is due to random variation or errors in sampling. They may have given a measure of significance in the article, but the summary did not.
Bureaucracy expands to meet the needs of the expanding bureaucracy.-Oscar Wilde
So, it is basically about cognitive dissonance?
Since when correlation between 0.33 and 0.52 has been significant?
Hawking, you mean.
I had forgotten how much cooler teenagers look when they are smoking. Oh, wait
but i'm not american and therefore don't have a social security number! does that mean i cant be irrational?! where's the logic in that? anyhow, correlation is not causation... what if the experiments caused the social security numbers?? eh? it's just another FAILED attempt of american secret services attempting to CONTROL our minds and steal our LOLZ!!! and a correlation of 0.52 is rubbish - explains ONLY 27% of the variance. and that's not worth getting out of bed for. no sir. cunt bubbles.
Science basically involved checking whether what "everyone knows" is actually correct, and then trying to find out why.
upon the advice of my lawyer, i have no sig at this time
I submit that religion illustrates perfectly our ability to make irrational decisions in the absence of evidence, and cling to obviously false explanations in spite of real facts subsequently brought to light.
I agree, slashdot's article descriptions have really gone flat. You should be able to read the description and get a full understanding of what's going on. This doesn't happen anymore, hence why I go to TechDirt
another current /. headline: http://yro.slashdot.org/story/09/10/23/1249256/Data-Entry-Errors-Resulted-In-Improper-Sentences
Think the prosecutors & defense attorneys allowed their set point to be an assumption that the data must be correct ? Sure they did.
And I've always wondered about the moral certitude which seems to guide the decisions of various group adherents, like the Moral Majority back in the 80's. Say even the Acorn folks now. Once the premise is accepted, all further reasoning is derived there from.
I think this is sort of common sense, though and we all know that this is how the mind operates. Otherwise, how could organisms effectively process all of the stimulus information present in their environments with the outcome being a rational decision, in the time span necessary for survival decisions, with the limited 'computing resources' that our brains provide. ?
Don't we all generally accept that human thought processes work from categorization ? Hence we get bad affects like biggotry, prejudice, racism, genocide, etc. along with the ability to decide quickly and hence survive our environment.
Wow. I knew the "hurr durr, what good is this study, it's only repeating common sense, what a waste of time/resources" response was coming as soon as I read the summary title, but I didn't expect it would be the first post. Especially since this story is specifically ABOUT the way that people are prone to believe "obvious" things in spite of actual evidence.
Please, get this through your heads: "common sense" (another name for biases gained from anecdotes and cultural groupthink) is often misleading, unreliable, over-broad, or outright wrong. At one time it was "common sense" that heavy objects fall faster than light objects. It was "common sense" that large, heavy objects can't float in water. It was "common sense" that the world is flat and women and blacks are intellectually inferior to white men and that the planets and moons are perfect spheres orbiting in perfect circles.
Science is about testing claims through empirical experiment--sometimes the results match up with "common sense", sometimes they don't. Sure, this story an example of a place where experiment confirmed something that is fairly obvious on its face--but the data goes a long way towards better understanding the WHYS and HOWS of this "obvious" phenomenon. Data is never a bad thing.
In other words, a company that installs Windows on its first PC will probably install it on thousands of additions, instead of installing Linux on hundreds.
Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
To me laziness and pride are the two biggest obstacles to rational thinking.
Laziness since, more often than not, simply sitting down and thinking things through you can avoid most irrational decisions. Time constraints can make this difficult. But I'm surprised at how often I see family/friends make poor decisions simply because they don't know how to stop and think. I like this quote from Samuel Johnson since it articulates the fact that easy access to information does not mean people will spend the energy to even look at it (let alone use it wisely):
Mankind have a great aversion to intellectual labor; but even supposing knowledge to be easily attainable, more people would be content to be ignorant than would take even a little trouble to acquire it.
Next to laziness, is pride. This boils down to the fact that culturally we're often taught to focus on being right rather than focusing on what's right. This comes from the illusion that one can own or control truth. I've seen this affect friendships, marriages, professional atmospheres, politics, etc. Truth is independent. You either align yourself with it or continue to live in ignorance. Of course, objective indisputable truth is rare or even non-existent in humanity, but it's the honest, humble desire to align oneself with truth (not the other way around) that's important here.
Faith is a willingness to accept something w/o complete proof and to act on it. Reason allows you to correct that faith.
The wife's number ends in 99, which explains everything.
threadeds blog
When a store puts a product on sale, and it gets a new customer, it also loses that customer when the sale is off? Interesting that a number sticks so hard, not just the relative scale.
This is why everyone from market stall traders, to Governments will pitch an initial amount that's ludicrously high. Not only is there a sense of relief when you haggle downwards (or an initial estimate is lowered, or whatever) but also, if you've previously contemplated the effects of the higher number, then here's the proof that you're more likely to accept a higher cost when it comes down to business.
the last two digits of their social security number, very heavily influenced what they were willing to pay for the product.
So apparently those with an SSN ending in 99 now have an excuse for their previously inexplicable impulse to BUY EVERYTHING.
No, I meant hocking. As in, "hocking a loogie". Or as in "hamhocks", e.g. the lower shanks of pig's legs that have too much gristle for regular eating, but are good for soup base, or for adding flavor to boiled greens, just like a slashvertisement would do.
What do paraplegic astrophysicists have to do with poor article summaries and book promotion, anyway?
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
A book on 'irrational thinking'....aka "Chicks Think the Darndest Things".
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
For better understanding on Dan Ariely's point, see this video http://www.ted.com/talks/dan_ariely_on_our_buggy_moral_code.html
Some clarifications:
- The SSN is not itself important to the experiment. They could have asked for their driver's license and have the same correlation.
- About 40% of the people would base their decisions on a previous decision that was not taken by themselves (starting price in this case), meaning that the coherence would apply to the situation rather than their own decisions.
So what we have here is a confirmation that a significant number of people can be pushed around if they didn't have a previous opinion on the matter. Not exactly novel and I fail to see the arbitrariness.
http://dilbert.com/2010-12-13
Hey, I can be a quack evolutionary biologist too! The mind is constantly trying to cast objects and phenomena into patterns, so that it can identify similar patterns of events that happen in the future. That way, it'll have some idea of how a certain decision turned out in a situation patterned a certain way. So naturally, it doesn't just describe or identify patterns, it also constructs them. So by trying to construct the coherences described in the TFA, it is trying to construct a world in which it has an advantage, because it has a tool (pattern matching) that works quite well in it.
I'm pretty sure advertisers already know this: "How much would you pay for all this? $100? Guess again! If you call within 10 minutes we'll sell it to you for ONLY $19.99!"
Prov 9:8 Do not rebuke mockers or they will hate you; rebuke the wise and they will love you.
You still don't get it, just like most people who turn reason into a fetish. A 100% perfect logical system is still dependent on the data that it receives. One of those inputs is raw emotion. Another is instinct. You cannot perfectly control them, and are lucky to just control them most of the time.
This is a well-known phenomenon. I first encountered it in Phil Zimbardo's Discovering Psychology series (Skip to about 9:30)
So this science basically involves saying things everyone knows about using big words?
No, science involves proving things people might have thought is true (yet had no proof is true, so can't honestly even claim IS true, as being correct would be only an accident) using normal sized words that you just happen to be on the end of the bell curve which finds them not small enough to understand (and consequently complain about.)
To hawk is to peddle or sell, or to clear mucus from the throat.
To hock is to pawn.
Whichever meaning you intended, you got the wrong word.
And, from the context, you clearly meant peddling.
I had forgotten how much cooler teenagers look when they are smoking. Oh, wait
Yes.
It increases Dopamine spikes in your brain. Doing Productive Things is boring, so they don't. It's the same brain center as other addictions.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
"something he calls "arbitrary coherence."
And that other call things like behavioral persistance, behavioral momentum, priming, avoidance of cognitive dissonance, etc. He can call it whatever he wants, but that's not going to make the concept his.
"Correlations ranged from 0.33 to 0.52. Those are extremely significant."
Those are correlations, the magnitude and direction of co-variance of two measures. These are positive so they vary the same directions. Correlations, are often done using Pearson's technique and are then given the variable little r. A handy but of work with r is the ability to tell at a glance just how much of the observed variance can be explained by the scores. To do so, simply square them. So the amount of variance explained in these tests are 0.11 to 0.27 (11% to 27%). That means from 73% to 89% of the observed variance is unexplained. In practical terms, that's poor. I know in psychology we tend to accept such low r's as meaningful, but we're about the only ones.
As to "significance": there is no such thing as "highly" (or any other modifier) significant. The significance score, using the variable little p, is what it is, whether you have a program tell you it's equal to or less than a number calculated from the data, or you calculate it and find it to be less than some arbitrary cut off value. If p 0.001 or if p = 0.9, that is the significance level. You can't use the modifiers because significance depends on things like the number of subjects and/or samples, score variance, multiple comparisons between scores, etc. The significance changes. Even with the same data set, if you calculate a second result, you're doing a second comparison which requires a correction factor and that changes p. What significance means in one data set (how many times Mary punches the Bobo doll after watching Homer choke Bart) has nothing to do with another (how many meters depth on average the Earth's surface would be sterilized by all US vs. all Russian thermonuclear weapons), so some dangling, arbitrary "much much MUCH so" means even less, being of zero import but incorrectly suggesting there is.
So those (.33 to .52) are the r values, In calculating them p was also. It should have been reported. I have no idea of the author ever did or not because the references here consist of two blog posts about the guy's work and one about a book on this subject, and zero that I see on peer reviewed journal articles. Now, I'll be the first to tell you that last bit doesn't count for near what people think, but at least they see to it the formulae are followed, one being proper (as in APA format) quoting of statistics. I might have looked up an article to see if the author gets it right, but I'm not about to read a book by someone who either ignores or is ignorant of the fact that the concept he's examining has already been, in much greater depth and clarity than what's given here.
"I may be synthetic, but I'm not stupid." -- Bishop 341-B
"Don't believe everything you think" by Kida and "Kluge" by Marcus are further recommended reading on the topic.
it's in my head
Whoosh.
I acknowledge that the response to my OP pointed out an error in usage.
There, does that make you happy? Is that obvious enough for you?
Did you actually think my 100% tongue-in-cheek prior reply was a valid explanation for my usage choice?
The difference between "want" and "need" inspires people to demonstrate behavior of "get" and "take". Those are irrational decisions and, over the course of a lifetime, lead to death through accumulated damage to something we could define as faith.
The way to preserve faith, and avoid death, is by practicing faith. Have the patience to receive and be free of the weaknesses which cause action based upon the desire to get or to take.
Consider that you are a fish living in a stocked pond. 99.99999% of everything is bait.
the NPG electrode was replaced with carbon blac
Irrational decisions? By college students? Wow, amazing.
Arbitrary coherence is an oxymoron. It is either coherence or it's arbitrary. Decisions we make are never arbitrary, not even when we try to make a random choice. Ariely's experiment found an interesting correlation in the decisions made by the test subjects. However, the experiment was not designed to determine the reasons behind the decisions. Just because you don't understand the motivation behind someone's decisions, does not make these decisions arbitrary. And, obviously, they are not arbitrary since the experiment established a strong pattern to the subjects' actions. Ariely's findings are not exactly new either. Open just about any product catalog and you will notice the same pattern: common, "on-sale", moderately-priced items are tucked at the end of the page containing expensive products that often are not even in the same category. Clearly, we assign value by association in the absence of relevant facts. However, this does not make our decisions arbitrary. What results did Ariely expect his experiment to produce? True randomness from a human brain? I don't think so.
Actually, science is about trying to *disprove* things. Most scientific theories are impossible to "prove" completely; what scientists do is try to design experiments which are predicted by the theory to have a certain outcome, and which will probably have a different outcome if the theory is actually wrong. This is an effort to falsify the theory--to show that it is wrong.
The usefulness of scientific theories is not only that they can be used to predict outcomes, but also that we can use them to try and *explain* how the world works. But its generally impossible to *prove* that the theory is correct (and thus, that our explanations that are based on it are also correct). Instead, we build up confidence over time, by trying everything we can think of that might poke holes in the theory.
Example: what we call the 2nd Law of Thermodynamics is actually a scientific theory. Many, many experiments have been done which have failed to falsify this theory, so we have a lot of confidence now that it is essentially correct. But still, there might be some subtle nuances to it that we haven't quite figured out yet, and some day, an experiment might reveal them (showing that the theory is in some way wrong, or at least incomplete). If that happens, a new theory will have to be formed to try and account for the differences, and then new experiments will be devised to try and disprove *that* theory.
This isn't people being irrational, it's just a question of people assigning logic to random data...
If you are interviewed for a job, and you are asked the hypothetical question "Would you take the job for $50/hour", and then are actually offered the job at $20/hour, you'll be very suspicious that something sneaky is going on, and may believe you can get more money out of the negotiation, EVEN THOUGH you would probably have been happy with a $20/hour job up-front. On the flip side, if the first number is ridiculously low, and the second is more reasonable, you have every reason to assume you're luck to get as much as you were first offered.
Obviously, if you KNOW that data is random, you realize that's not the case. However, if you think there's a human behind the scenes, trying to gauge your reactions, it makes some sense.
OTOH, some of these tactics are already used to intentionally manipulate people. Ridiculous MSRP prices, leading to "99% OFF" sales, and similar tricks. Come to think of it, I may have to try using this to re-negotiate my salary...
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
No. The thought process itself is totally rational.
Here it is:
1. I agreed to pay X previously.
2. I am a logical person. (see the steps I am doing right now for proof.)
3. Therefore if a logical person previously agreed to pay X, then X is a valid price.
4. Examine further price changes by comparing to X.
Their is NOTHING irrational about it, it is a great method for for use with little information. Making decisions based on little information is part of life and definitely requires rational methods. As long as no new information is introduced, the method they used is VERY ratioanl. If you are later told that the wholesale price of is X/10, (or 3 times X), then and only then should you ignore the original price X.
The scientist (or more likely the reporter reporting the study) simply was NOT smart enough to realize the value of the RATTIONAL thought process involved and decided it must be stupid, so they called it 'irrational'.
excitingthingstodo.blogspot.com
While this may lead to suboptimal decisions in individual cases it is rational behavior for animals with finite intelligence and limited and unreliable information (i.e., us). This behavior has evolved because, in the general case, it works.
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
Check this out - particularly part 2. In fact, check out part 2 first: it makes you wonder how much we lie to ourselves and post-rationalise. We need to do it.
We get a buzz out of making decisions: therefore there is always an emotional component in "rationality".
However, there is a danger of being lazy, letting others do the thinking and just experiencing the "rational" buzz second-hand.
People can tend to accept outlandish things when they are said in a "sensible" tone-of-voice...
Exactly and a pretty good review of this was posted on Coding Horror a few weeks ago http://www.codinghorror.com/blog/archives/001301.html with links to how it's sometimes implemented in a less than ideal way
Watch those corners
I submit that religion illustrates perfectly our ability to make irrational decisions in the absence of evidence, and cling to obviously false explanations in spite of real facts subsequently brought to light.
So does Clippy.
No good deed goes unpunished. - Avon, Blake's 7
FWIW, I'm currently reading "Sway: The Irresistible Pull of Irrational Behavior" by Ori and Rom Brafman. It's a really excellent book, similar in topic, and well-researched, and enjoyable to read with interesting real-life anecdotes to exemplify the points they raise. It touches on many different influences that affect our decision making processes.
http://www.amazon.com/Sway-Irresistible-Pull-Irrational-Behavior/dp/0385530609/ref=sr_1_1?ie=UTF8&s=books&qid=1256331144&sr=8-1
I think you misspelled "potatoe".
Ahh - My eye!
The doctor said I'm not supposed to get Slashdot in it!
Subjects use "arbitrary" factors to influence their decisions and they also take into account everything else to varying degrees. The brain "decides" the best it can and that includes relying on things like white matter, memory, and all its input up to, and, including the experiment's demand characteristics.
Assuming arbitrary and erroneous factors are quantitatively qualitatively different; we use all our resources to decide and if some of these factors and the degree they influence us seems arbitrary it is only because the decision process is more complex than we understand.
Ha - do it right - a theory is only *scientific* if if it makes predictions not already observed, making it falsifiable upon finding out those predictions failed. So by it's nature a scientific theory can never be proven 'completely' - that would imply it had no more predictions to make.
Sorry - got into an argument with a conservative the other night, been reading my Popper - {G}. It amazes me how many people will present articles that have no verifiable information in them as 'proof' that flu vaccine is dangerous, the health care plan is going to destroy our economy, et al.
Pug
An Invisible Entity of Vast Power whose existence must be taken on faith alone: Liberal Media
Just want to point out that even though the correlation coefficients are definitely significant, that isn't effect size. Squaring the coefficients will give you a better idea of the size of the effect we're talking about here. In this case, the effect was found to account for about 11% to 27% of the shared variance. This is certainly nothing to sneeze at, but it also doesn't mean that you can really bet on it.
I'm not one of these "social science isn't science" trolltards. I just like to remind people to think in effect sizes to temper their enthusiasm. This is interesting stuff, no matter what, but having a couple quick 'n' dirty formulae for calculating effect size in your mental pocket will keep your reality check intact.
0.33 to 0.52 ? That doesn't seem too much of a co-relation to me.
Consider 6 billion cars which have been constantly updated for millions of years. The designed original use for the car, hunting and gathering utility vehicle, is completely different from how the cars are used now (commuting to work and going shopping). And the model has never had a version change or redesign. Oh, and the cars are self reproducing and changes in the structures are introduced semi randomly.
There, I think that's pretty good.