The document summarizes key concepts from behavioral economics relating to how human decision making is influenced by cognitive and emotional factors. It discusses how the brain has an "elephant" part driven by emotion and an "rider" part driven by rational thought, but the elephant often dominates decision making. It provides examples of how framing effects, biases, heuristics, loss aversion, reference points and more can impact judgments and choices in systematic and sometimes irrational ways compared to standard economic assumptions of rational actors.
Slides Jeff Otto recently used in his discussion w/ mentees of The Product Mentor.
The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People.
Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community.
http://TheProductMentor.com
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
15 Behavioural Economics Principles to increase ConversionsSiteVisibility
This presentation demonstrates the value of understanding and using a variety of behavioural economics principles to achieve results in your digital marketing campaign.
Slides Jeff Otto recently used in his discussion w/ mentees of The Product Mentor.
The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People.
Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community.
http://TheProductMentor.com
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
15 Behavioural Economics Principles to increase ConversionsSiteVisibility
This presentation demonstrates the value of understanding and using a variety of behavioural economics principles to achieve results in your digital marketing campaign.
Aspiration, confidence, fear of failure and trust play a role in the B2B buying mindset. It sounds obvious, but avoidance of risk is a key component of business continuity and it’s easy to forget that B2B buyers are human beings, rather than rational decision-making robots. Brands need to invest time in understanding how their audience makes decisions if they are to influence them
Behavioural Economics content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Alternative Views of Consumer Behaviour
Behavioural Biases
Nudges
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
A review of the behavioral economics concept of the paradox of choice where some choice is good, but too much choice creates paralysis and dissatisfaction
Prisoner's Dilemma is a paradox in decision analysis in which two individuals acting in their own best interest pursue a course of action that does not result in the ideal outcome. The typical prisoner's dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result of following a purely logical thought process to help oneself, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process.
In this session, we will be looking at The Prisoner's Dilemma and how it affects our decision making, group and team dynamics, business decisions. We'll look at real world case studies and nature with a goal of understanding this dilemma better.
A summary of research dealing with two concepts from prospect theory: loss aversion and the endowment effect by Dr. Russell James III, University of Georgia
Aspiration, confidence, fear of failure and trust play a role in the B2B buying mindset. It sounds obvious, but avoidance of risk is a key component of business continuity and it’s easy to forget that B2B buyers are human beings, rather than rational decision-making robots. Brands need to invest time in understanding how their audience makes decisions if they are to influence them
Behavioural Economics content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Alternative Views of Consumer Behaviour
Behavioural Biases
Nudges
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
A review of the behavioral economics concept of the paradox of choice where some choice is good, but too much choice creates paralysis and dissatisfaction
Prisoner's Dilemma is a paradox in decision analysis in which two individuals acting in their own best interest pursue a course of action that does not result in the ideal outcome. The typical prisoner's dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result of following a purely logical thought process to help oneself, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process.
In this session, we will be looking at The Prisoner's Dilemma and how it affects our decision making, group and team dynamics, business decisions. We'll look at real world case studies and nature with a goal of understanding this dilemma better.
A summary of research dealing with two concepts from prospect theory: loss aversion and the endowment effect by Dr. Russell James III, University of Georgia
The cost of irrationality - how poker players perform better by avoiding cogn...Lasse Ringstad
The presentation demonstrates how cognitive biases is detrimental strategic decision-making.
In particular - it illustrates how poker players perform better by avoiding the availability and representativeness bias.
Finally it illustrates some advice on how to avoid these cognitive errors and improve your decision-making! :)
When in trouble, people ask "Why me?" They feel such things keep happening to them every time. They feel that they are the victims of the destiny. They start cribbing, wallowing in self-pity and at times cursing and swearing. This takes them down a negative spiral. This line of thoughts itself is wrong. What is fundamentally wrong with this approach? Can we recover from this?. This article is all about that. What is the malady and what is the remedy.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
4. The Brain: the Elephant and the Rider The Emotional Elephant Limbic System : coordination, motivation, memory, emotions. This is the older, bigger, more developed part of our brain Orbitofrontal cortex : emotional analysis, feeling of wanting or avoiding, pleasure and pain, approach and avoidance
5. The Brain: the Elephant and the Rider The Emotional Elephant Limbic System : coordination, motivation, memory, emotions. This is the older, bigger, more developed part of our brain Orbitofrontal cortex : emotional analysis, feeling of wanting or avoiding, pleasure and pain, approach and avoidance More emotional, irrational, intuitive, older, bigger, and faster
6. The Brain The Rational Rider Neo-cortex : thinking, planning, decision-making, time traveling, homo economicus. This is the newer, smaller, less developed part of our brain
7. The Brain The Rational Rider Neo-cortex : thinking, planning, decision-making, time traveling, homo economicus. This is the newer, smaller, less developed part of our brain Less emotional, more logical, rational, slower, and deliberate. The voice in your head.
8. The Elephant in Control The elephant part of our brain is bigger, and faster than the rider part of our brains. Many decisions that we think are unbiased and rational are based on an automatic sometimes unconscious reactions driven by the emotional elephant. Unless of course… Giddy up Elephant!
9. Evolutionary Automatic Responses Beauty and symmetry Disgust (flies) Smelling Shirts Babies and snakes Ovulation (strippers and looks)
10. Implicit Attitudes People who hold no explicit hostilities towards other races and genders may be implicitly biased. We make connections much more quickly between pairs of ideas that are already related in our minds than we do between pairs of ideas that aren’t familiar to us.
12. Implicit Attitudes 75% of Caucasians exhibit pro Caucasian implicit attitudes 50% of African Americans exhibit pro Caucasian attitudes
13. Fictitious resumes were sent to help-wanted ads in Boston and Chicago. Resumes were randomly assigned African American or White sounding names. Emily and Greg vs. Lakisha and Jamal?
14. Fictitious resumes were sent to help-wanted ads in Boston and Chicago. Resumes were randomly assigned African American or White sounding names. Emily and Greg vs. Lakisha and Jamal? White names received 50% more call backs than black names
15. Priming Studies and Automatic Associations Rudeness Elderly People Hot and Cold beverages Money African American Man Romance
16. Temporal Studies (hyperbolic discounting) What do you choose: 100 dollars today or 101 dollars tomorrow? versus 100 dollars in 50 days or 101 dollars in 51 days
17. Temporal Studies (hyperbolic discounting) What do you choose: 100 dollars today or 101 dollars tomorrow? versus 100 dollars in 50 days or 101 dollars in 51 days FMRI results show the emotional side wants less money today and the cognitive side wants more money in the future
18. Unconscious versus Conscious Thought Paintings 4 Apartments each with 12 attributes. One is objectively better. How do you choose the best one?
19. Unconscious versus Conscious Thought Paintings 4 Apartments each with 12 attributes. One is objectively better. How do you choose the best one? Intuition is better in complex decisions. The elephant is bigger than the rider.
20. The Elephant is Narcissistic Dennis the Dentist Phil lives in Philadelphia Judy marries Joe First three letters of your name Facial morphing
21. The Elephant is Narcissistic Dennis the Dentist Phil lives in Philadelphia Judy marries Joe First three letters of your name Facial morphing People like people who mimic them. Foot tapping. Waiters get bigger tips if he mimics his customers.
22. Positive Illusions 1 million students. 70 % thought they were above average leaders. 2% thought they were below average. 94% of professors think they do above average work How much would you donate out of $5? Said: $2.50 Actual: $1.53 How likely would you hire an underpaid domestic worker? Your neighbor? Everyone is in the 85 th percentile in driving skills
23. Positive Illusions 1 million students. 70 % thought they were above average leaders. 2% thought they were below average. 94% of professors think they do above average work How much would you donate out of $5? Said: $2.50 Actual: $1.53 How likely would you hire an underpaid domestic worker? Your neighbor? Everyone is in the 85 th percentile in driving skills People think they are more honest, cooperative, rational, better drivers, and more intelligent than others.
24. Harvard MBA students claim to do 139% percent of the work. Over claiming credit found in marriages, academia, athletics, and fundraising. Greater the over claiming the less people want to work together in the future. Perspective taking reduces these effects. Over claiming credit
25. Social Stuff: Reciprocity Humans are ultra-social creatures. It is in our interest survival interests to cooperate with other. We usually play tit for tat. Parts of our brain keep track of this. Things like gratitude and vengeance regulate it. Giving 5 to fill out a survey gets more compliance than telling people you will mail them 50 dollars when they fill it out.
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28. Like in group brands: Students like brands more used by their in-group members than their out group members Abandon brands: “ Cool students abandoned the “Live strong” bracelet when the “nerds” next door wore them too In-Group Out-Group Bias
29. Fairness Homo Economicus? Dictator Games: give 1/3 Ultimatum Games: $20 half of people give $10. People reject $3 but accept $7.
30. Fairness Homo Economicus? Dictator Games: give 1/3 Ultimatum Games: $20 half of people give $10. People reject $3 but accept $7. FMRI reject triggers emotional reaction, accept triggers more cognitive reactions
33. DO IT! DON’T DO IT! Moral Judgments Indirect harm triggers the cognitive brain. Direct harm triggers the emotional brain.
34. DO IT! DON’T DO IT! Moral Judgments Indirect harm triggers the cognitive brain. Direct harm triggers the emotional brain. We evolved not to harm people directly. Division of labor enables greater harm.
35. People who score poorly on social intelligence tests find reasons to discount the test. Coffee drinkers find flaws in tests that say coffee is unhealthy. Level of outrage predicts prison sentences The Elephant Tells the Rider What to Think
36. People who score poorly on social intelligence tests find reasons to discount the test. Coffee drinkers find flaws in tests that say coffee is unhealthy. Level of outrage predicts prison sentences The Elephant Tells the Rider What to Think If the argument “makes sense” we don’t look for any counter evidence. We think we are objective but the rider acts like a lawyer for the elephant.
37. Students given complex information about the sale of a real company and asked to estimate the company’s value as the buyer’s auditor or the seller’s auditor. Bias and Conflicts of Interest
38. Students given complex information about the sale of a real company and asked to estimate the company’s value as the buyer’s auditor or the seller’s auditor. Bias and Conflicts of Interest Seller’s auditor estimated the value to be 30% more than the buyer’s auditor. Similar effects were found with real auditors. Real financial incentives didn’t help.
39. 5 dollar wine as 5 dollar wine, or 35 dollar wine. Tastes better when it’s more expensive. The Elephant is Really Powerful
40. 5 dollar wine as 5 dollar wine, or 35 dollar wine. Tastes better when it’s more expensive. The Elephant is Really Powerful FMRI studies find that participants actually feel more pleasure with the expensive wine.
41. Seashells and Tide? People who saw seashells were more likely to say they liked Tide, and came up with many good reasons for why they liked it.
42. Seashells and Tide? People who saw seashells were more likely to say they liked Tide, and came up with many good reasons for why they liked it. “ It smells good.” or “My mom used it when I was a kid.”
43. Sweatshops are the only realistic source of income for workers in poorer countries; Without sweatshops poorer countries couldn’t develop; The use of sweatshop labor is okay because otherwise these products wouldn’t be affordable to low-income people, The use of sweatshop labor is okay because companies must remain competitive. Moral Justification
44. Sweatshops are the only realistic source of income for workers in poorer countries; Without sweatshops poorer countries couldn’t develop; The use of sweatshop labor is okay because otherwise these products wouldn’t be affordable to low-income people, The use of sweatshop labor is okay because companies must remain competitive. Moral Justification Much more likely to agree if you consider a really nice pair of jeans than just an okay pair of jeans
45. Negativity Bias: missing a positive cue (food) is much less catastrophic than missing a negative cue (predator). We are wired so that bad is stronger than good. Prospect Theory and Loss Aversion
46. Negativity Bias: missing a positive cue (food) is much less catastrophic than missing a negative cue (predator). We are wired so that bad is stronger than good. Prospect Theory and Loss Aversion Pain of losing a $100 is greater than the joy of winning $100. We are generally risk averse.
47. Scenario 1: A. Getting two $100 parking tickets in one day (for a total of $200). (-20) B. Getting one $200 parking ticket. (-15) Scenario 2: A. Winning two $100 lotteries in one day (for a total of $200). 10 B. Winning one $200 lottery. 7.5 Win $100 Lose $100 5 7.5 -10 -15 Loss Aversion
48. Scenario 1: A. Getting two $100 parking tickets in one day (for a total of $200). (-20) B. Getting one $200 parking ticket. (-15) Scenario 2: A. Winning two $100 lotteries in one day (for a total of $200). 10 B. Winning one $200 lottery. 7.5 Win $100 Lose $100 5 7.5 -10 -15 Loss Aversion Better to integrate losses and segregate gains.
49. Imagine you are given a choice of gambles. You either have a 100% chance of losing $100 or a 50% chance of losing $200. Imagine you are given a choice of gambles. You either have a 100% chance of winning $100 or a 50% chance of winning $200. Risk Taking
50. Imagine you are given a choice of gambles. You either have a 100% chance of losing $100 or a 50% chance of losing $200. Imagine you are given a choice of gambles. You either have a 100% chance of winning $100 or a 50% chance of winning $200. Risk Taking Hate losing. Willing to take a risk to avoid it.
51. Scenario 1: Imagine that your country is preparing for an outbreak of a disease which is expected to kill 600 people. Given the choice between two vaccination schedules, Program A which will save 200 and Program B which will save all 600 with probability 1/3, and save no one with a probability of 2/3. Scenario 2: Imagine that your country is preparing for an outbreak of a disease which is expected to kill 600 people. Given the choice between two vaccination schedules, Program C which will allow 400 people to die and Program D which will let no one die with probability 1/3 and all 600 will die with probability 2/3. Framing Disease Problem
52. Scenario 1: Imagine that your country is preparing for an outbreak of a disease which is expected to kill 600 people. Given the choice between two vaccination schedules, Program A which will save 200 and Program B which will save all 600 with probability 1/3, and save no one with a probability of 2/3. Scenario 2: Imagine that your country is preparing for an outbreak of a disease which is expected to kill 600 people. Given the choice between two vaccination schedules, Program C which will allow 400 people to die and Program D which will let no one die with probability 1/3 and all 600 will die with probability 2/3. Framing Disease Problem Real impact for major policy decisions!
53. Imagine there was a snow storm and shovels are all of a sudden in high demand. Consider each of the following scenarios: Case A: The shovel’s original price is $20. Due to increasing demand, the owner of the store raises the price by 25% and now the shovel costs $25. Case B: The shovel’s original prices was $25 but it has been on a promotion for $20 for the last year. The owner decides to repeal the promotion and the price goes back up to $25. How unethical? Framing and Ethics
54. Imagine there was a snow storm and shovels are all of a sudden in high demand. Consider each of the following scenarios: Case A: The shovel’s original price is $20. Due to increasing demand, the owner of the store raises the price by 25% and now the shovel costs $25. Case B: The shovel’s original prices was $25 but it has been on a promotion for $20 for the last year. The owner decides to repeal the promotion and the price goes back up to $25. How unethical? Framing and Ethics More unethical to raise price then remove sale. Reference point.
55. Case A: Imagine you have been exposed to a rare and fatal disease and now face a .001 chance of painless death within two weeks. How much would you be willing to pay for a vaccine that would eliminate this risk? Case B: How much compensation would you demand to participate in a medical experiment where you will face a .001 chance of a quick and painless death? Framing Status Quo
56. Case A: Imagine you have been exposed to a rare and fatal disease and now face a .001 chance of painless death within two weeks. How much would you be willing to pay for a vaccine that would eliminate this risk? Case B: How much compensation would you demand to participate in a medical experiment where you will face a .001 chance of a quick and painless death? Framing Status Quo Depends on reference point. Once you have been exposed the loss has been incorporated.
57. Group A is given pens and asked if they want to exchange for chocolate. Group B is given a token they can buy pens or chocolate. Endowment Effect
58. Group A is given pens and asked if they want to exchange for chocolate. Group B is given a token they can buy pens or chocolate. Endowment Effect Group A is more likely to keep the pen. Group B is more likely to choose chocolate. Group A sees trading the pen as a loss.
60. Automatic enrollment and opt out Future raises will go into retirement plan 401K Policies Future raises are never registered as a loss
61. FMRI studies show that the pain centers of the brain light up when one has to part with one’s cash. The Pain of Paying
62. FMRI studies show that the pain centers of the brain light up when one has to part with one’s cash. The Pain of Paying Less pain with credit.
63. You’re at a store and learn $30 calculator on sale at the other store for $15. Worth a 10 minute drive? You’re at a store buying a car and learn the $45,375 dollar car is on sale at the other store for $45,360. Worth a 10 minute drive? Reference Points: 10 minutes for $15?
64. You’re at a store and learn $30 calculator on sale at the other store for $15. Worth a 10 minute drive? You’re at a store buying a car and learn the $45,375 dollar car is on sale at the other store for $45,360. Worth a 10 minute drive? Reference Points: 10 minutes for $15? A 10 minute drive is worth $15? What would homo economicus do?
65. Donate $1 per day to be withdrawn from your account $7 per week for one year Donate $365 a year to be withdrawn from your account $7 per week Reference Point: For Just Pennies a Day…
66. Donate $1 per day to be withdrawn from your account $7 per week for one year Donate $365 a year to be withdrawn from your account $7 per week Reference Point: For Just Pennies a Day… More likely to donate $1 per day. Reference point is a cup of coffee vs. a new gas grill.
67. If your boss told you to fire someone without cause, how likely would you do it? How likely would others do it? If your boss told you to release an unsafe product to market how likely would you do it? Others? If your boss told you to shock someone even though they were screaming in pain how likely would you do it? Others? The Classics: Obedience to Authority
68. Participant is told they are part of a learning experiment, and asked to administer shocks to a “confederate” by the experimenter, an authoritative man in a white lab coat. The Classics: Obedience to Authority
69. Participant is told they are part of a learning experiment, and asked to administer shocks to a “confederate” by the experimenter, an authoritative man in a white lab coat. The Classics: Obedience to Authority 65% of participants--some with clearly conflicted consciences--delivered the lethal shock. The only duress placed on the subjects was verbal cuing from a man in a white lab coat.
70. Which line in the second box is the same size as the line in the first box? The Classics: Conformity
71. What if you were in a group of seven people who on a go around, all agree that the answer is A? You’re the last person in the group to give your answers. What would you say? The Classics: Conformity
72. What if you were in a group of seven people who on a go around, all agree that the answer is A? You’re the last person in the group to give your answers. What would you say? The Classics: Conformity 37% of participants agree with the group even if the answer is obviously wrong.
73. A participant is placed alone in a room and is told he can communicate with other participants through an intercom. In reality, he is just listening to an audio recording and is told his microphone will be off until it is his turn to speak. During the recording, one participant suddenly pretends he is having a seizure. The Classics: Diffusion of Responsibility How long the participant waits before alerting the experimenter varies directly with the perceived number of other participants.
74. When they have too much choice (24 vs. 6) they don’t enjoy choosing, experience more regret, and less satisfaction. Students who wrote essays from a selection of 24 topics wrote worse papers than those who could choose from 6 topics. Random Studies: Over choice
75. When they have too much choice (24 vs. 6) they don’t enjoy choosing, experience more regret, and less satisfaction. Students who wrote essays from a selection of 24 topics wrote worse papers than those who could choose from 6 topics. Random Studies: Over choice However, people will always tell you they want more choice!
76. Say your doctor prescribed you a drug that she has a financial stake in somehow. How many of you would want your doctor to tell you this? Random Studies: Disclosure of Conflicts
77. Say your doctor prescribed you a drug that she has a financial stake in somehow. How many of you would want your doctor to tell you this? Random Studies: Disclosure of Conflicts More likely to listen to your doctor if they disclose the conflict than if they don’t.
78. Brands use tales of their humble beginnings as part of their branding. “We started in a garage…” External disadvantage with passion (underdog) wins out over advantage with or without passion (top dog) Random Studies: Underdogs and Brand Biography
79. Brands use tales of their humble beginnings as part of their branding. “We started in a garage…” External disadvantage with passion (underdog) wins out over advantage with or without passion (top dog) Random Studies: Underdogs and Brand Biography People like brands they can identify with, and that inspire them.
80. Some Good Books: The Happiness Hypothesis Johnathan Haidt Judgment and Decision Making Max Bazerman The Tipping Point and Blink Malcolm Gladwell Nudge Dick Thaler and Cass Sunstein Thank You! Contact Info: Neeru Paharia [email_address] Whasssup!!! The elephant is in charge now!