Showing posts with label Libertarian Paternalism. Show all posts
Showing posts with label Libertarian Paternalism. Show all posts

Thursday, November 6, 2008

Je Regrette


ProspectTheory.net is not a political or self-help forum; however, I need to confess the regret I feel over a recent vote. Fortunately my regret is true to theme and related to judgment and decision-making.

On November 4th I voted on a relatively minor ballot issue here in Massachusetts to ban the practice of greyhound dog racing. I knew the issue was on the ballot along with two others of greater importance. This is unusual for me but I entirely forgot about the measure and entered the balloting booth without already having made a decision on the greyhound issue. I was in a hurry so made a snap decision to vote in favor of banning the practice.

This was a simple yes or no question but as a JDM geek I want to understand why I voted this way. I made a quick decision in the heat of moment. Was I using my hot/emotional system and my rational side would have arrived at a different answer, hence the feeling of regret? Quite possibly. When I voted yes I was thinking of the practice of dog racing itself. I visualized caged dogs, elderly men gambling, smoking, and ticket stub litter and it all seemed primitive and sad. However, I believe the greatest contributor to the decision was my internal framing of the question and my related starting point anchor. In the voting booth the question I asked myself was “do I disapprove of this practice?” I could have formed a different question which was actually much closer to the true one, “should the freedom of others be restricted in this domain?” My baseline/default answers to these two questions are quite different, even in the abstract. Do I disapprove of a questionable practice? Yes. Do I want to restrict freedoms? No. Even if I managed to ask myself both questions, the answer to the question I started with could serve as a powerful anchor and determine the ultimate outcome of the decision.

I am sure that politicos and partisans are well aware of this effect and use it to their advantage. Here we have another argument for a Nudge like Libertarian Paternalism when it comes to designing our ballots. Voting only works if we are asking the right questions.

Tuesday, September 30, 2008

High Tech Fever Interview


Hightechfever.tv is a live, weekly Cambridge local access TV show that focuses on entrepreneurship and technology. Despite its humble profile the show pulls in an amazingly great range of guests due to, MIT lecturer and host, Joost Bonsen’s extensive network. On September 10th I sat down with Joost to discuss several judgment and decision-making topics including behavioral economics, prospect theory, anchoring, and cognitive reflection testing. Prominent scholars mentioned include Kahneman, Tversky, Ariely, Prelec, Loewenstein, Frederick, and Thaler. The Youtube link above shows the most relevant segment of the interview.