i
actually a little bit about the irrational behaviour not use of course other people's
so after being committee for a for a few years the realise that the right
and then we could papers is not the that exciting you know i don't know
how many of those you read but
it's not fun to read and often not for interactive and was to right
so decide to try and write something a more final
in i a came up with an idea that i write the cookbook
in the type of form a cookbook was going to be dining without from the
other three tingles a distinct
then it was going to be look at life through the kitchen that was quite
excited about this is going to talk about the little that the but research a
little bit about the kitchen you know we do so much from the kitchen i
thought this would be interesting and i wrote a couple of chapters and i two
key to mit press and they said you know cute but not for us going
to find somebody else
i tried that the people and everybody said the same thing executes
not for us an internal somebody said
look if you serious about these you first have to write the book about your
research you have to but something and then you'll get the opportunity to write something
else if you really want to do you have to do it so i stimuli
we don't want to write about my research i do this all day long i
want to write something else something be more free less constrained
in this a person was very and force fluency look that's the only way you'll
have to do it so set okay if i have to do it either sabbatical
a set of rights about my research of does not away and then only to
do my cookbook so wrote the
a book and my research
time to be quite fine in two ways first of all i enjoyed
writing but the more interesting thing was that i start learning from people
different time to write because the so much feedback you can get some people write
me about the personal experience in about the of examples and what we disagree and
nuances anything being here i mean the last two days that i've known really high
so say obsessive behaviour i never i
which i think it just fascinated i will tell you a little bit about irrational
behaviour and i want to start by giving a some examples of visual illusion is
a metaphor for rationality still think about these two tables and you must have seen
disillusion you fast you want longer the vertical line of table on the last or
the horizontal line on the table on the right
which one scenes longer
can anybody see anything but the last one being longer no right is impossible at
the next thing about visually chinese we can easily demonstrate mistakes second put some lines
on all doesn't help i can i think make the lines into the extent you
believe me again shrink the lines which i didn't i proving to you met your
eyes more
deceiving you
no the interesting thing about this is gonna take the lines away
it's as if you haven't learned anything in the last minute click on
you can't look at this instead of being now i see reality as it is
right it impossible to overcome this
sense that this is indeed longer our intuition is really folding as in the repeatable
predictable consistent while is almost nothing we can do about it aside from taking a
ruler and starting to measurement
is another one is one of my favourite illusion what do you see the colour
that the top airways pointing to
braun thank you the bottom one
yellow turns out to identical
can anybody see them as identical very high i can cover the rest of the
cube at twenty five cover the rest of the cube you can see that are
identical
and if you don't believe me you can get the slightly to induce arts and
craft and see that there are identical
but again it's the same story that if we take the background the way the
illusion comes back
this is no way for us know to see
this solution i guess maybe if you colourblind i don't think you can see that
i want to think about the illusion is a metaphor you know vision is one
of the best thing we do we have a huge part of a brain dedicate
division bigger than the to get to anything else we do more vision more hours
of the day than we do anything else and what follows are designed to do
vision and if we have is predictable repeatable mistakes envisioning which was so that
what's the chance that we don't make even more mistaken something would not as good
or
for example financial decision making
something we don't have an evolutionary reason to do we don't have a special is
part of the brain and we don't do that many hours of the day and
the argument is that on those cases it might be the issue that we actually
make many more mistakes
in worse not have an easy way to see them because in visual illusions we
condition we demonstrate the mistakes in cognitive illusion it's much harder to demonstrate the people
the mistakes
so i want to show some cognitive illusion the decision making lose in the same
in the same way
and this is one of my favourite plot in social sciences it's from paper by
johnson goals teen and it basically shows the percentage of people who indicated that would
be interested in giving the organs to the nation
and the different countries in europe and you basically c two types of countries
countries on the right that seems to be giving a lot
and countries on the left it seems to be
giving very little
not much less
that is why the some countries develop in some countries give
but it
we ask people this question the usually think that it has to be something about
culture right how much you care about people
giving you organs to somebody else's probably about how much you care about society
howling two or maybe "'cause" about religion
but if you look at this plot
you could see that counts is that we think about this very similar
actually exhibit very different behavior
for example sweden is all the way on the right and then the market we
think is culturally very similar is all the way on the left
germany's on the left and austria
is on the right
the netherlands on the left and belgium is on the right and finally depending on
your particular version of the european similar to you can think about the ukraine in
french is either similar culturally or not
but it turns out that from organ donation directly from
but only the middle one is an interesting stories of the netherlands kind of the
biggest of the small group
turns out to be got to twenty eight percent
i the mailing every household in the country a letter begging people to jointly salt
intonation proper
but you know the expression begging only get two so far
twenty eight percent in organ donation
but look at the countries on the right to do in the doing a much
better job beanbag so what are they doing
turns out to see could has to do with the formant the d and v
and here's the story the countries on the left
how the former that the mv that looks something like this check the box below
if you want to participate in the organ donor program
in what happens
people don't check
and they don't john
the countries and the right you want to give a lot had a slightly different
form
uses check the box below if you don't want to participate
interestingly enough when people get this data again don't check but now examine
the problem
no i think about what addition
you know we wake up in the morning and we feel we make decisions we
wake up in the morning and we open the closet in we feel that we
decide what where we open the refrigerator enfolded we decide what to eat
in what is actually saying that much of these decisions are not residing would you
notice that resigning by the person who's designing that for
when you walk into the mv the price of the design deformable have but influence
one what you end up doing
note also verified to into it is results
think about it for yourself how many of you believe that if you want to
renew your license to moral and you want to the d m v and you
would encounter one of these forms that would actually change one behavior
very how to think it will influence aspect we can see all these fun europeans
of course it would be influenced number when it comes to ask
we have such a feeling that would drive the seat with such as train it
will rent control and we are making the decision that it is very high even
except the idea that we actually have an illusion of making a decision rather than
actual decision
no
you might say
you know the decisions we don't care about in fact by definition these a decision
about something that will happen to us that we do how do we care about
something less than have something that happens after we die
so it's standard economist somebody believing rationality would say you know what the cost of
free listing the pencil and marking of the is higher than the possible benefit of
the decision so that's why we get this affect
in fact
it's not because it's easy it's not because it's trivial it's not because we don't
care it's the opposite
it's because we care it's difficult and its complex
and it's a complex it we don't know what to do
and because we have no idea what to do we just pick whatever it was
chosen for us
maybe one more example for this is from a paper by rather might interfere
and they said
with this effect also happens to experts people will pay experts in the decisions do
it a lot and the basically took a group of physicians
and they presented in the case study of the patient and the set his the
patient is a sixty seven year old former is been suffering from the right a
pain for awhile and then they said to the physician yes any decided a few
weeks ago that nothing is working for these patient implications nothing seems to be working
so you refer the patient to hip replacement therapy
"'kay" hip replacement okay so the patient is on the path of happy soup replaced
and then sent have a physician the thing yesterday
you review the patient's case and you realise and you forgot to try what medication
you did not try ibuprofen
if you put patient back and try preprocessing module it can go and have hip
replaced
well the good news is that most physician in this case you started to pull
the patient in try ibuprofen
very good for the physicians
the loop of the physician they said yesterday when you review the case you discover
do with communication in trial
ibuprofen in pure oxygen this idea to indication each row it what you do you
like well you put them back and if you put them directly try i we
propose an approach to can which one
no i think of with this decision
makes it easy to let the patient continue with a hip replacement but telling them
but also some becomes more complex
this one more decision
what happens now
majority of the physicians now to select the patient go to get perplexing
i don't this war is you by the way
when you go to see a physician
the thing is that no physician ever say he brought so can i be prof
and hip replacement let's go for keep replacing but the model like you said this
is the default it has the used car on whatever people and up to
maybe a couple of more examples of you rational decision making
imagine i give you chose
you want to go for we can roll all expenses paid hotel transportation food
breakfast a continental breakfast everything
or we can in paris now we can in paris we can enrol is a
different things they are different for different culture different art
noting that i acted the short to the set that nobody wanted
but i say that we can enrol
we can in paris
well having a car stolen
it's a funny a because why would having your car stolen in this influence anything
but to one option to have your car stolen was not exactly like this
what if it was a trip to roll all expenses paid transportation
breakfast
we conclude coffee in the morning if you will cost you have to pay for
yourself it's two euros fifty
no in some ways
given that you can have run with coffee why would you possibly want run with
a coffee it's like having a constellation inferior option
but guess what happens
the moment to a wrong without coffee run with coffee become more popular
in people choose
the fact that have role with a coffee make strong we coffee looks superior in
not just to run without coffee events appear to paris
two examples of this principle
this was a natural economist a few years ago
that gave us three choices
and all that a subscription for fifty nine dollars a print subscription four hundred twenty
five
or it could get about four hundred twenty five
but it is and i called up economist and i tried to figure out what
they think
and they passed me for one person to another to another
a until eventually i got to the first person who's in charge of the website
and i call them up and they went to check what was going on in
the next thing i know the at his girl and no explanation
so i so i decided of the experiment that they don't of the beloved economies
to do with me i took this i gave it will have an mit students
i said what would you chose a need of them are feature
most people want to the comedy or
thankfully nobody wanted the dominated option that means of students can read
now if you have an option that nobody wants
you take it off
right so it took like printed another version of this when i eliminated the middle
option
and i give it another hundred
students
here's what happens
and now the most popular option we cantonese proper and the least popular became the
most popular
what was happening is that option that was useless
in the middle
was used as in the sense that nobody wanted
but it wasn't uses in a sentence help people figure out what they wanted
in fact
relative to the option in the middle
which was
and get only the print four hundred twenty five the print waveform and that means
that looks like a fantastic deal
in as a consequence people chosen
the general idea here by the way that we actually don't know what preferences that
well and because we don't know preferences that well what susceptible to all of these
influences from the external forces the defaults
their particular option that are presented words and so on
one more example of this
that people believe that when we deal with physical attraction we see somebody and we
know immediately what do we like them or not attracted on all this is what
we have these phenomena dates and so i decided on these experiment we'd people i'll
show you graphic images of people not real people the experiment was would people
i showed some people picture of palm
and picture of areas and you want to day call
jerry
but for the people i didn't ugly version of jerry
i two for the shop and i major area
slightly less attractive
the people i didn't come
and the question was well as jerry an ugly don't help
the respective the more attractive brothers
and the answer was absolutely s
what ugly jerry was around jerry was popular when only time was around thomas
this of course is to a very clear implications for the for life in general
if you have a go bar hopping could you want to take what you
you want
you want this like the audio version of yourself
similar but slightly uglier
and the second point of course is that if somebody else invites you know how
they think about you
what is the general point a general point is that when we think about economics
we have this beautiful view of human nature
what the piece of work is mannheim noble in reason we have these idiots of
ourselves of others
that the cable economics perspective is slightly less
generous to people in fact being medical terms that's the our view
but there is a silver lining
and the silver lining is i think kind of the reason the behavior economics is
interesting and exciting
you know how we superman or we homer simpson
when it comes to building the physical world and
we can understand or limitation
so we build steps and we build these things about everybody can use obviously but
we build them
we understand or limitations and we build around it
but for some reason when it comes to the mental world when we design things
like health care and requirement in stock market we somehow forget the idea that were
limited and i think it's we on this to the cognitive limitations
in the same way that we understand of physical limitation examples there was in the
face in the same way we could design a better world and that i think
is the hope of these things