Expert Intuition

Expert Intuition

Much of Daniel Kahneman’s book Thinking Fast and Slow is about the breakdowns in our thinking processes, especially regarding the mental shortcuts we use to make decisions. The reality of the world is that there is too much information, too many stimuli, too many things that we could focus on and consider at any given time for us take in everything and make a comprehensive decision. Instead, we rely on short-cuts, use our intuition, and make estimates that help us with our decision-making. Usually we do just fine with this whole process, and that is why we rely so much on these short-cuts, but sometimes, cognitive errors and biases can drive us off a cliff.

 

However, Kahneman stresses that all is not lost. Our intuition can be very reliable if we develop true expertise in the area where we are putting our intuition to the test. As Kahneman writes, “Valid intuitions develop when experts have learned to recognize familiar elements in a new situation and to act in a manner that is appropriate to it.”

 

We can make predictions, we can learn to recognize commonalities between situations, and even on a subconscious level we can absorb and recall information to use in decisions. The key to using our intuition successfully is a careful line between mastery and arrogance. It requires self-awareness to know what we know, to understand an area well enough that we can trust our intuition, and to know what we don’t know, so that we don’t make judgments beyond our area of expertise.

 

While much of Kahneman’s research (the majority of which I’m going to be writing about) is focused on problematic heuristics, predictable cognitive errors, and hidden mental biases, it is important to know when we can trust our intuition and where our thinking doesn’t lead us astray. There are times where developing expertise through practice and experience can help us make better decisions. Even if we are not the expert, we can recognize and learn from those who do have expertise, paying attention when their intuitions forecast something important. Getting a sense for how well the mind can work, and how well humans can think and forecast when they have the right information and knowledge is powerful if we want to think positively about what our future might hold. At the same time, we have to also understand how thinking fast can get us in trouble, and where our expert intuitions may fail us.
Luck & Stories of Success

Luck & Stories of Success

There are some factors within individual control that influence success. Hard work is clearly important, good decision-making is important, and an ability to cooperate and work well with others is also important for success. But none of these factors on their own are sufficient for success, at least many prominent thinkers and researchers seem to agree that they are not sufficient. One very successful researcher who would agree that these character, personality, or individual traits are not enough is Daniel Kahneman, the Nobel Prize winning professor from Princeton.

 

Kahneman’s research, the portion which won him the Nobel Prize was conducted with Amos Tversky, was incredibly successful and influential within psychology and economics. But remembering the lessons he learned from his own research, Kahneman writes the following about his academic journey and the studies he shares in his book:

 

“A recurrent theme of this book is that luck plays a large role in every story of success; it is almost always easy to identify a small change in the story that would have turned a remarkable achievement into a mediocre outcome. Our story was no exception.”

 

In anything we do, a certain amount of luck is necessary for any level of success, and much of that luck is beyond our control. Some songs really take off and become major hits, even if the song is objectively not as catchy or as good as other songs (is there any other way to explain Gangnam Style?). Sometimes a mention by a celebrity or already famous author can ignite the popularity of another writer, and sometimes a good referral can help jump-start the popularity of a restaurant. We can work hard, put our best product forward, and make smart choices, but the level of success we achieve can sometimes be as random as the right person telling another right person about what we are doing.

 

Timing, connections, and fortunate births are all luck factors that we don’t control, but that can hugely influence our stories. Being born without a disability or costly medical condition can allow you to save for a rainy day. Being born in a country with functioning roads and postal services can allow you to embark on a new business venture. And happening to have a neighbor who knows some body who can help your kid get into a good college can allow your child and family to move up in ways that might have otherwise been impossible.

 

There are certain things we can do to prepare ourselves to take advantage of good luck, but we need to recognize how important luck is. We have to acknowledge it and remember that our stories are full of luck, and that not everyone has a story with as equally good luck as we do. We can’t assume that our success was all due to factors relating to our good personal traits and habits (a cognitive error that Kahneman discusses in his book). To fully understand the world, we have to look at it objectively, and that requires that we think critically and honestly about the good luck we have had.
Confident But Wrong

Confident, But Wrong

We like confident people. We like people who can tell us something direct and simple to understand while being confident in the statements they make. It makes our job as a receiver easier. We can trust someone with confidence because surely they have thought out what they say, and surely their lack of ambivalence or hesitation means they have solid evidence and a logical coherence to the ideas they are expressing.

 

The problem, however, is that confidence and accuracy are not actually linked. We can be very confident in something that isn’t accurate, true, or correct. What is even worse, it can be hard for us ourselves to recognize when our confidence is misplaced. As Daniel Kahneman writes in his book Thinking Fast and Slow, “We are often confident even when we are wrong, and an objective observer is more likely to detect our errors than we are.”

 

We need to surround ourselves with thoughtful people with expertise in important areas where we will be making crucial decisions. We need to collect input from more than one person before we express complete confidence in another person, idea, or prediction. In the real world, this isn’t often possible, but it is something we should at least be aware of.

 

Trusting confident people is a way of answering an easier question in place of a more difficult question. The question might be, should we invest in this mutual fund or that mutual fund, or should we have a totally different investment strategy that doesn’t involve mutual funds. Instead of asking ourselves how we should invest our savings and doing the difficult research to understand the best strategy for ourselves, we switch to a different question and ask, “do I trust the financial advisor giving me the investment advice?” This is an easier question for us to answer. If the advisor sounds smart, has awards on their desk or wall, and exudes confidence, then they are going to appear more trustworthy, and we will believe what they say. They can present us with a lot of confidence, but be totally wrong, and we will likely go with their recommendations anyway.

 

As Kahneman explains, however, outside observers can help us overcome these confidence traps in ourselves and in how we perceive others. If we have a reliable person with knowledge of a certain area, they can help us think through our arguments to determine if we should be as confident as we are. They can help us evaluate the claims of others, to determine whether their confidence is also well deserved or needs more scrutiny. What is important to remember is that we use confidence as a heuristic, and sometimes we can be confident, but wrong with our thoughts and opinions on a given subject.
Kahneman's Gossip Hope

Kahneman’s Hope

Daniel Kahneman opens his book on cognitive biases, thinking errors, and observed processes within the field of cognitive psychology in an interesting place. Thinking Fast and Slow begins with Kahneman praising gossip, and explaining his hope for the readers of his book. He does not hope that readers of his book will avoid gossip and stop talking about others behind their backs. He hopes readers will gossip better, and understand the thought processes, mental limitations of the human mind, and mental errors that go into all of our gossip.

 

Kahneman writes, “The hope for informed gossip is that there are distinctive patterns in the errors people make. Systematic errors are known as biases, and they recur predictably in particular circumstances.”

 

What he hopes for is that understanding how the brain works will help us all have better conversations at the water cooler, or at lunch with a colleague, or in the evening when we get home and want to vent to a spouse or parent or pet. Gossip can be a powerful tool in developing and shaping the norms of society, and if we are going to give gossip so much power, we should at least do our best to ensure that our gossiping is well informed, accurate, and that when we gossip we understand how our minds are reaching our gossipy conclusions.

 

Certainly Kahneman’s real hope is that writing about and explaining gossip in a way that more people can access than simply putting his ideas in academic journals will lead to fewer negative externalities in the world from biases, prejudices, and simple cognitive errors. However, for most people, Kahneman thinks the water cooler gossip forum is where his ideas and research will really impact people’s conversations.

 

The point is that the human mind doesn’t exactly work the way we tend to think it does. It feels as though we have one thought that rationally flows from another thought. That we are observant, considerate, and are willing to come to conclusions based on fact and observed reality. Through his research in the book, Kahneman shows us that our brains are predictable in the errors they make. They are not as rational as we believe, and our thoughts don’t flow coherently from one idea to the next. The observations we make are always incomplete relative to the full information of the reality around us, and our choices and actions are far more motivated by what we want to believe is true than is actually true in reality. Knowing all of this, Kahneman hopes, will make us more cognizant and reflective in our gossip, hopefully helping the world to be a slightly more accurate and enjoyable place to be.
Gossip Machines

Gossip Machines

Humans are gossip machines. We like to talk about  and think about other people, especially the negative traits and qualities of others. At the same time, we are self-deception machines. We downplay our own faults, spend little time thinking about our mistakes, and deny any negative quality about ourselves. Even when we are the only audience for our thoughts, we hide our own flaws and instead nitpick all the things we dislike about other people.

 

As Daniel Kahneman writes in his book Thinking Fast and Slow, “it is much easier, as well as far more enjoyable, to identify and label the mistakes of others than to recognize our own.”

 

But gossip isn’t necessarily as bad as we usually make it out to be. It is definitely not a good thing to constantly talk bad about other people, to find faults in others, and to ignore our own shortcomings. It can make us vain, destroy our relationships with friends and family, and give us a bad reputation among the people in our lives. And yet, we all engage in gossip and it pops up on social media today, in movies from the 80’s and 90’s, and even in journals from our nation’s founding fathers. Gossip seems to have always been with us, and while we are quick to highlight its evils, it seems to also be an important part of human society.

 

Kahneman continues, “The expectation of intelligent gossip is a powerful motive for serious self-criticism, more powerful than New Year resolutions to improve one’s decision making at work and at home.”

 

We do not live in a vacuum. We are not isolated from society and other humans, and as a result we understand ourselves and think about ourselves in relation to other people. We partake in gossip and we know that other people gossip about us. This creates an important constraint on our actions and behaviors, shaping the way we live our lives. Knowing that other people will judge us prevents many negative behaviors such as reckless driving, living in unsanitary conditions, or being deliberately mean to other people. While gossip certainly has a lot of problems, it does in some ways shape how we behave in societies with other people in positive directions.

 

We might not want to think about our own flaws, but knowing that humans are gossip machines forces us to at least consider how we will appear to other people some of the time. This can drive us to act in accordance to social norms, and can be the bedrock of a society that can cooperate and coordinate efforts and goals. Without gossip, we might have a harder time bringing ourselves together to live in harmony.
Seneca on Quotes

Seneca on Quotes

In Letters From a Stoic, Seneca writes, “give over hoping that you can skim, by means of epitomes, the wisdom of distinguished men. Look into their wisdom as a whole; study it as a whole. They are working out a plan and weaving together, line upon line, a masterpiece, from which nothing can be taken away without injury to the whole.”

 

I really like this quote and the idea that Seneca presents. He is saying that simple quotes and sayings are insufficient if we hope to actually build knowledge and construct a concrete mental framework for thinking about life. There are many inspirational quotes from famous and influential people, but reading them in isolation is often inadequate for developing a real philosophy of life.

 

This is an idea that I agree with. I actively try to avoid individual quotes, even though I present quotes from books, writers, and thinkers on this blog. My hope is that diving deeper into the meaning for an interesting quote and exploring the ideas it represents will help the quote be more valuable and meaningful for me and anyone else. I try to present some context and how a quote may or may not relate to different aspects of life or perspectives on the world.  Based on Seneca’s quote, I suspect he would approve of this approach. What he would not approve of is simple quotes in isolation, or layered over background sunrises.

 

Individual quotes in isolation become trite, and trying to attach undue meaning to an individual quote or phrase can be harmful, especially when it is taken out of context or applied in an overly broad way. Quotes can only truly be helpful when we consider them within the larger body of work of the individual or culture from which they originate.

 

Seneca’s writing is less valuable on its own than when it is considered alongside other stoic thinkers such as Marcus Aurelius or modern day writers who have a similar focus like Colin Wright or Ryan Holiday. Deep study is what helps us truly understand the world and develop a better understanding of how ideas relate to the world around us. Deep study is necessary if we want to develop our own framework for the world – an amalgamation of quotes from across the web won’t do.
Stimuli, Attention, and What We Notice

Stimuli, Attention, and What We Notice

“Wherever you direct your gaze, you will meet with something that might stand out from the rest, if the context in which you read it were not equally notable,” writes Seneca in Letters From a Stoic.

 

Quite a while back I listened to a podcast interview with the founder of a music streaming service called Focus At Will. The company is different from other streaming services such as Spotify or Pandora in that they don’t provide stations that have your favorite songs from top artists. Instead, they have stations with altered songs and selected tunes that they believe will help you stay on focus. The idea is that our brains are easily distracted by the human voice, by instruments that mimic the human voice, and by lots of changes in our background. Each time we hear a voice, we are distracted for a fraction of second as our brain figures out whether we need to pay attention to that voice or not. And when the sound in the background changes suddenly, like when a song ends, when a car honks its horn, or when a branch snaps, our brains perk up and focus on our surroundings for a second to figure out if we are in danger. Eliminate these background noises and provide a consistent noise, the company argues, and people will be able to focus.

 

Seneca’s quote from above reminded me of Focus At Will and the theories behind their streaming. In particular, one of their stations really aligns with the ideas that Seneca lays out in the quote, but from an audio rather than visual perspective. Focus At Will has a station designed for people with ADHD. Based on neurological studies, they argue that people with ADHD have brains that are too sensitive to background noises. For most of us, when a colleague sneezes from two offices over, the sound is detected by our ears and transmitted to our brain which subconsciously decides the noise was unimportant. Consequentially we don’t even notice the noise because it gets stuck with the unconscious brain, never elevated to the level of conscious awareness. For an individual with ADHD, however, their brain is more sensitive to a sneeze from down the hall, and they consciously recognize that noise and are distracted as they think through whether they need to respond to the stimuli or not. This happens with more than just sneezes, and can be hugely distracting for the individual as they are constantly working through stimuli that are easily ignored and unnoticed for most of us.

 

The solution that most of us would jump to would be to put an individual with ADHD in a completely noise and stimuli reduced environment. The solution of Focus at Will, in line with Seneca’s quote, is to raise the context of other noises to be equally as notable as the disruptions. The streaming service has a station that can be almost overwhelming to individuals without ADHD. There is a flurry of sound (in a musical way – not just random noise) that is somewhere in the neighborhood of heavy metal, demolition derbies, or construction sites. The solution is to raise the level of noise and distraction so that everything is operating at a high distraction level, so that no notable sound stand out.

 

Personally, I listen to stations like the Chilled Cow Lofi Hip Hop Radio Station when I need to focus on important work. But the idea of what stands-out, what we focus on, what we notice among a sea of stimuli is fascinating. Our brains can be overwhelmed by stimuli, and at the same time, an abundance of stimuli can also bring our attention and focus into a single point, drowning out other stimuli. This is just one more example of how reality isn’t. Our brains construct and create the reality we experience, and how we see the world around us is context dependent, with the level of stimuli playing a role in what we observe and experience.
Tall Poppy Syndrome

Tall Poppy Syndrome

“There is unevenness, you know, when some objects rise conspicuous above others,” Seneca wrote in Letters From a Stoic.

 

I’m pretty fascinated with a concept that is known as Tall Poppy Syndrome and is often strongly expressed in Australia and New Zealand (so I understand – I haven’t been there myself to experience the culture fist hand). The idea is this:

 

A tall poppy that rises higher than the rest, that stand out above the others, is more likely to be decapitated than any other poppy. The poppy that is taller than the rest is not an admirable and praiseworthy poppy, it is risking itself and is likely to become a target. It is the first to be cut down because it is the most visible and easiest to see. An average poppy among a sea of poppies is likely to be left untouched and unbothered while the towering poppy next door is likely to have its top chopped off.

 

The idea is a warning against our ego and an argument in support of modesty. It is a polar opposite of current conceptions of the American Dream. Rather than standing out, boasting successful achievements, and always trying to have more, Tall Poppy Syndrome sends a message that it is better to do well, but not to do too well. As Seneca says, when some objects conspicuously rise above others, they create unevenness.

 

The potential of unevenness, or inequality, is an argument in favor of Tall Poppy Syndrome. The United States has never embraced a Tall Poppy Syndrome mindset, and instead we have developed a culture that tells us it is best to standout in all that we do. Have bright, fashionable clothing. Drive a fancy sports car. Own a big home to show your wealth and success. Inequality is a feature, not a bug, within the American system.

 

Today that inequality is reaching boiling points. Racial inequality (particularly within in policing and opportunity for advancement) is fueling protests. Increases in economic inequality has heightened tensions in the United States since the 2008 financial crisis. And as long as I can remember, social cohesion has clashed with our desire to stand out and be ourselves, producing visible and difficult cultural conflicts over gay marriage, free speech, and whether it is acceptable to wear baggie jeans.

 

There may be times where Tall Poppy Syndrome is limiting and reduces innovation and GDP growth. But its absence, and an all out push to stand out as an individual, can have its own consequences. Donald Trump doesn’t become president in a society that strongly discourages status seeking behavior via Tall Poppy Syndrome. In a culture that is all about economic success, bragging about attention and popularity, and ostentatious wealth, Trump and everything he represents, can rise to the top without fear of being cut down and outcast.

 

I don’t think Tall Poppy Syndrome is a perfect solution to the challenges America faces today, but I do think we need to limit the extent to which we worship the eccentric, ego driven entrepreneurs who have developed some of our best tools and technologies, and who to this point have represented the pinnacle of American success. Encouraging more settling at a certain point, more efforts to create a rising tide to lift all boats, rather than encouraging the tall poppy, might be necessary for our country to move forward on more even footing.
Capitalism and Externalities

Capitalism and Externalities

Capitalism has come under fire in the recent years in ways that I would not have predicted as I completed my college degree and entered the workforce. For so many years the idea of capitalism has been central to the American story and to American identity. It may not be perfect, but it has always been held above other economic systems as the best option available. However, recently, people have taken a new look at capitalism to ask if it can be maintained without the plundering of others. Can there be a reasonable sense of equity or equality within a system of capitalism? And in the United States, do we really have a meritorious system of capitalism, or is the American system of capitalism overrun with grift and graft?

 

Allowing people to flourish based on their own talents, allowing people to pursue their own interests, and to accumulate wealth can be a good thing, but it can also be done to excess. Like alcohol, chocolate cake, or Netflix, our pursuit of wealth can essentially be an addiction, and the costs can be born on all of society, not just on ourselves. Our actions and the systems and structures within which we operate have unintended consequences. These consequence, or externalities, can be positive or negative. Within capitalism, positive externalities include new technologies that improve our lives, more efficient markets which minimize waste, and hopefully more goods and wealth for everyone. But negative externalities related to capitalism include pollution, corruption, and extractive processes that harm individuals, communities, and environments.

 

In Letters From a Stoic, Seneca writes to his friend Lucilius, “I myself pray rather that you may despise all those things which your parents wished for you in abundance. Their prayers plunder many another person, simply that you may be enriched.”

 

Seneca is acknowledging that when one person gains resources, often times it is at the expense of another person. The goal of capitalism is for our economic system to be positive sum, meaning that everyone is better off in an exchange – a state known as a Pareto Efficiency. However, this is not always the case. Seneca sees exchanges, or maybe more precisely the accumulation of resources and wealth, as zero sum, meaning that there is a fixed amount of stuff, and that anything that one person accumulates is taken away from another person. This, in my opinion, is where so much of our discontent in the United States and across the globe with capitalism lies.

 

Seneca may not always be correct. There may be Pareto Efficiencies out there and there may be situations in which capitalism builds a positive sum economic system. But it does seem like moderation in our approach to capitalism and wealth accumulation is warranted. At a certain point, for us to have more necessarily mean that we are extracting wealth and resources from other places. Mining, logging, and cattle grazing can have damaging effects on local environments and communities, even if they do help develop industry or increase GDP in the places we take resources from. Beyond a certain level, continuing this trend is likely to make our lives marginally better, while potentially making the lives of others much worse. We should constantly ask ourselves if we are nearing that point, and try to limit our need for more stuff and more wealth when we are at sufficient level where the marginal gain for us is meaningless and effectively just plunders others for our own enrichment. It seems reasonable if we should ask whether limitless growth is really possible, or if capitalism ends in a state of plunder, in which nothing is left for a sustainable existence for everyone.
The End is Always Near

The End is Always Near

The human mind thinks in narratives. Well take in information about the world around us, and we create a story that weaves all of those narratives together in a cohesive manner. The mind creates the reality that it experiences, and it uses narrative to give the story meaning. Unfortunately, sometimes the stories don’t fit the actual world we inhabit very well.

 

One area where the narrative we tell ourselves doesn’t fully match the reality of our lives is with regard to our risk of dying on any given day. As our brains build the narrative of our lives and of who we are, it projects forward into the future of who we will become and the world we will inhabit. My assumption, based on the way I know that I think, is that we project forward a long life with our ending far off in the distant future. I recognize this tendency in myself all the time, and I suspect that even if I do make it to old age, this same tendency will be with me then.  It is hard to imagine that my end is not always going to be far away.

 

The end is always near, however. Or at least, the potential and risk of the end is always near. Our brains believe that we have lots of life left, because that is how the narrative we have crafted in our minds plays out. But the real world doesn’t have to follow the narrative in our minds. The real world is separate from what we think it should be or will be, and it doesn’t much care about how we think about it or understand it (or fail to understand it either).

 

In Letters From a Stoic, Seneca wrote, “who is not near death? It is ready for us in all places and at all times.”

 

It is important to remember that the actual course of our lives could diverge from the narrative path we create at any moment on any day. The possibility of a natural disaster, a clumsy mistake, or the malice of another person resulting in our early departure from life is always greater than zero. This means that whatever narrative we create, however far off death is in the story we tell ourselves, the reality is that the end is always near.

 

The take-away is to make our time meaningful, to be content that we have done our best each day, so that if we die, the narrative we lived out will end with us as a confident, complete individual. This is not an excuse for a YOLO way of life, and it shouldn’t be a reason to bury ourselves in work – effectively enslaving ourselves to a job, a cause, or a relationship. Instead, what we should learn from our always near ending is that we should do our best to fully apply ourselves in a way that meaningfully engages in the world to produce more than our own selfish happiness. We should seek opportunities to live a life where we  can develop a strong and fulfilling narrative that helps to lift up others who are doing the same. The end is always near, so we should make sure we have made of our life a narrative we can be proud of.