Behavioral economics Quotes

“The inconsistencies that haunt our relationships with animals also result from the quirks of human cognition. We like to think of ourselves as the rational species. But research in cognitive psychology and behavioral economics shows that our thinking and behavior are often completely illogical. In one study, for example, groups of people were independently asked how much they would give to prevent waterfowl from being killed in polluted oil ponds. On average, the subjects said they would pay $80 to save 2,000 birds, $78 to save 20,000 birds, and $88 to save 200,000 birds. Sometimes animals act more logically than people do; a recent study found that when picking a new home, the decisions of ant colonies were more rational than those of human house-hunters. What is it about human psychology that makes it so difficult for us to think consistently about animals? The paradoxes that plague our interactions with other species are due to the fact that much of our thinking is a mire of instinct, learning, language, culture, intuition, and our reliance on mental shortcuts.”

“The inconsistencies that haunt our relationships with animals also result from the quirks of human cognition. We like to think of ourselves as the rational species. But research in cognitive psychology and behavioral economics shows that our thinking and behavior are often completely illogical. In one study, for example, groups of people were independently asked how much they would give to prevent waterfowl from being killed in polluted oil ponds. On average, the subjects said they would pay $80 to save 2,000 birds, $78 to save 20,000 birds, and $88 to save 200,000 birds. Sometimes animals act more logically than people do; a recent study found that when picking a new home, the decisions of ant colonies were more rational than those of human house-hunters. What is it about human psychology that makes it so difficult for us to think consistently about animals? The paradoxes that plague our interactions with other species are due to the fact that much of our thinking is a mire of instinct, learning, language, culture, intuition, and our reliance on mental shortcuts.”

“Dan Ariely, author of Predictably Irrational, a book that offers an entertaining and engaging overview of behavioral economics.”

“My hunch is that as the importance of a decision grows, the tendency to rely on quantitative analyses done by others tends to shrink. When the championship or the future of the company is on the line, managers tend to rely on their gut instincts.”

“As part of an effort to prod college seniors to get tetanus shots, a group of students was given a lecture meant to educate them about the dangers of tetanus and the importance of getting inoculated against it. A large majority of those students reported that they were convinced and planned to get their shots, but in the end only 3 percent got them. Bu another group of students, who were presented with the same lecture, had a 28 percent inoculation rate. The difference? The second group was given a map of the campus and asked to plan their route to the health center and pick a date and time to go. Sometimes, you see, motivation isn't our problem. Rather, we need to identify life's everyday mental obstacles - regret, fatigue, overconfidence, fear, to name just four - and put ourselves into position to hurdle them.”