Nudges Are Unavoidable - Joe Abittan

Nudges Are Unavoidable

American capitalism makes a mistake in assuming that people have all the information they need to make a rational choice. As anyone who has ever purchased a car knows, consumers do not always have all the valuable information they need to make a good decision in an exchange, and often, one party has far more information than another. We can become experts at selecting avocados pretty easily, but it is fairly unlikely that we will become experts at selecting the best used car. We become avocado experts because we can buy them weekly and get reliable and immediate feedback when we get home and cut into them. A used car, however, is not something we buy on a regular basis, and we might make it months or years before we have a catastrophic break down.

 

Because we are not experts in everything and because there are some decisions we have to make where we don’t get reliable and timely feedback and can’t practice enough to truly know what to look for, we are subject to forces large and small that influence our decision-making. Buying a used car because you like the sales person, because the price feels right, and because of brand loyalty are examples of cognitive errors or biases where subtle nudges by the dealership or brand can influence us. Whether a salesman intends it or not, there are many factors that nudge our behavior, and they can’t be eliminated.

 

In Nudge, Cass Sunstein and Richard Thaler write, “In many situations, some organization or agent must make a choice that will affect the behavior of some other people. There is, in those situations, no way of avoiding nudging in some direction, and whether intended or not, these nudges will affect what people chose.”

 

The car dealership example is a somewhat nefarious and depressing view of nudges. However, the reality of Sunstein and Thaler’s quote can also be a powerful force to help improve people’s lives and not just overcharge them for a lemon. Carfax is a company that helps nudge people in the right direction, by getting them to consider the vehicle’s collision history before making a decision based on how shiny the car looks. Other nudges can be helpful for people, and if we accept that nudges are unavoidable, then we can actively step in to help design decision situations in a way that will allow people to make good decisions. An example I can think of would be visual aids to help people understand how much they can afford for a monthly car payment, mortgage, or rent. Most housing agencies suggest that people shouldn’t spend more than 33% of their monthly income on rent/mortgage. A calculator tool with a green smiley face, and a red frown face could help nudge people away from mortgages or rents that they really can’t afford, helping people make difficult and more reasonable housing decisions. Small actions can help people better understand their decisions and can serve as guides that help people do what is actually in their best interest as they themselves would understand it.
Evaluating Happiness

Evaluating Happiness

If you ask college students how many dates they have had in the last month and then ask them how happy they are overall, you will find that those who had more dates will rate themselves as generally more happy than those who had fewer dates. However, if you ask college students how happy they are overall, and then after they evaluate their happiness ask them how many dates they have had, you won’t see a big difference in overall happiness based on the number of dates that students had in the last month.

 

Daniel Kahneman looks at the results of studies like this in his book Thinking Fast and Slow and draws the following conclusion. “The explanation is straightforward, and it is a good example of substitution,” he writes. Happiness these days is not a natural or an easy assessment. A good answer requires a fair amount of thinking. However, the students who had just been asked about their dating did not need to think hard because they already had in their mind an answer to a related question: how happy were they with their love life?

 

This example is interesting because we are often placed in situations where we have to make a quick assessment of a large and complex state of being. When we buy a new car or house we rarely have a chance to live with the car or house for six months to determine if we really like it and if it is actually a good fit for us. We have a test drive or two, a couple walk-throughs, and then we are asked to make an assessment of whether we would like to own the the thing and whether it would be a good fit for our lives. We face the same challenges with voting for president, choosing a college or major, hiring a new employee/taking a new job, or buying a mattress. Evaluating happiness and predicting happiness is complex and difficult, and often without noticing it, we switch the question to something that is easier for us to answer. We narrow down our overall assessment to a few factors that are more easy to evaluate and hold in our head. More dates last month means I’m more happy.

 

“The present state of mind looms very large when people evaluate their happiness,” writes Kahneman.

 

We often judge the president based on the economy in the last months or weeks leading up to an election. We may chose to buy a home or car based on how friendly our agent or salesperson was and whether they did a good job of making us feel smart. Simple factors that might influence our mood in the moment can alter our perceived level of happiness and have direct outcomes in the decisions we make. We rarely pause to think about how happy we are on an overall level, and if we do, it is hard to untangle the things that are influencing our current mood from our perception of our general life happiness. It is important to recognize how much the current moment can shape our overall happiness so that we can pause and adjust our behaviors and attitudes to better reflect our reality. Having a minor inconvenience should not throw off our entire mood and outlook on life. Similarly, if we are in positions we dislike and find unbearable, we should not put up with the status quo just because someone flatters us but makes no real changes to improve our situation. Ultimately, it is important for us to be able to recognize what is happening in our minds and to be able to recognize when our minds are likely to be influenced by small and rather meaningless things.
Autonomous Actors

Autonomous Actors

“We now know that the effects of priming can reach into every corner of our lives.” Daniel Kahneman writes this in his book Thinking Fast and Slow while demonstrating the power of priming factors. An example he uses in the book to demonstrate the power of priming has to do with voting and school support. A study from Arizona showed that people are more likely to support ballot propositions to increase school funding when their polling place is in a school. The difference between supporting the proposition or not was greater for people voting within a school building versus those who voted elsewhere than the difference was between parents of school aged children and non-parents. Simply where we happen to cast our ballot is not something most of us would consider to be a big influencing factor in our preference for school funding, but it is. We are not the autonomous actors that we like to believe we are.

 

Priming factors influence a lot of our behaviors, often without our awareness. In the past I wrote about priming and creativity and the power of our environment from research that Richard Wiseman presented in his book 59 Seconds: Think a Little, Change a Lot. Small factors in our environment can change our emotional valance and can influence how creative we are, even if we don’t notice those factors directly. What our brains are doing is sometimes under our control, like when we focus on writing, doing math problems, or skiing downhill, but even then, our performance and ability can be influenced by things external to our brain that seemingly have no significance to our lives or the task at hand.

 

This raises the question about how autonomous we are, how much self-control and self-determination can we exercise, and whether there any potential for free will. The debates around free will are complex, and most people who study consciousness seem to be telling us that free will, at least as popularly conceptualized, cannot exist. Brain scans and studies show that an action potential builds up in the brain before we make a conscious decision to do something. Add to that the fact that priming studies show that the decisions we make are often influenced by factors beyond our immediate discretion, and we have to conclude that we do not have the kind of will, control, and autonomy that we typically perceive ourselves as having.

 

Kahneman writes, “Studies of priming effects have yielded discoveries that threaten our self-image as conscious and autonomous authors of our judgments and our choices.” Our environments and the priming factors around us shape who we are and how we behave. Social norms and cues dictate our responses to many events. We don’t behave rationally and autonomously, we respond to stimuli and the world, and don’t have the control that we associate with the autonomous actors we believe ourselves to be.

How to Influence People

“The only way on earth to influence other people,” writes Dale Carnegie in his book How to Win Friends and Influence People, “is to talk about what they want and show them how to get it.”

 

Carnegie’s book is one that I have heard recommended over and over by successful guests on the various podcasts that I listen to. I was excited to read it to get real insight into how to be a more likable person and how to be a more influential person in the groups and organizations that I participate with. The book, however, doesn’t provide you with any hacks to trick people into being your friend or to slyly convince people to do what you want them to do. The book focuses on relationships and the importance of being sincere and present in your relationships with others in order to develop meaningful connections with the people around you. The quote above is part of that advice.

 

We don’t influence other people’s decisions by preaching at them, by constantly yelling at them when they do something we consider to be wrong, or by nagging them to do things the way we want. We influence other people by connecting their actions, behaviors, and beliefs to larger outcomes that the other person is aiming for. In the ultimate sense, we show how the other person’s behaviors, actions, and beliefs are either in or out of alignment with their personal values.

 

In 2016 I started the Masters in Public Administration program at the University of Nevada, Reno. For years I had heard my sister tell me about the benefits of universal health care. I had heard my parents and uncles talk about the ways that welfare lead to people staying home to play video games instead of working. I had listened to people talk about trickle down economics and the values of federalism, and I wanted to enter a masters program where I could learn how to sort out all the arguments people discussed regarding public policy and governance. I wanted concrete facts so I could make rational decisions on all these topics and tell my family members who was empirically correct and who was wrong.

 

What I learned, however, is that all of these policy discussions hinge on something deeper than the cold hard rational facts. They hinge on values. As I learned what the scientific research showed about universal healthcare, tax rates, and social welfare programs, I told my family members where their ideas seemed to make sense and where they seemed to be in conflict with the actual data. My empirical evidence has meant nothing to my family members and has not changed any minds. The data is only useful when it supports the position that people want to hold based on their values. Changing minds and influencing people, therefore has to be connected to the values they already hold or that they aspire to.

 

Carnegie’s quote at the start of this post is all about connecting to values. You have to talk to people about what they want to see in life, why they want to see those things, and what values are driving the ways they hope the world turns out to be. Then you need to show them how the things you support, the ideas you think the other person should hold, and how the actions that you hope they will take help get the other person and society closer to those values.

 

For whatever reason we don’t like to talk about our values openly. Partly this is because for many of us our number one value is our own self-interest, and we don’t want to say that directly. But we also make up excuses around issues of abortion, healthcare, and taxes where we claim that economics or good health are the values we care about, but really we care much more about identity, self-interest, and whether the world is fair to us. If we could discuss those values directly, rather than hiding behind economic BS, then maybe we could actually compromise or be less hateful of those who don’t agree with us. In the end, we should remember that it is our values which underlay everything we say or due (that includes me, you, and that person on social media you hate). If we want to try to shape the world for the better, we better understand what values are driving us, what values drive others, and how we communicate our values in terms of how we think the world should operate. We won’t influence people to live better if we are not up front about our values and can’t connect other people’s actions back to the values question.

How Helpful Are We?

“People are willing to help, but the amount they’re willing to help doesn’t scale in proportion to how much impact their contributions will make.” Author’s Kevin Simler and Robin Hanson write this in their book The Elephant in the Brain when discussing our behaviors around donations and charity. “This effect,” they continue, “known as scope neglect or scope insensitivity, has been demonstrated for many other problems, including cleaning polluted lakes, protecting wilderness areas, decreasing road injuries, and even preventing deaths.”

 

In the United States, we have a high regard for charitable donations and activities. We encourage people to donate their time and money and our tax system has a way for people to get something back from the government by reducing how much they own in taxes if they gave enough in charitable donations. What Hanson and Simler highlight in their book, however, is that our human brains are not well suited to ensure that all of our charitable donating is having the greatest impact possible.

 

I am a public policy student and practitioner, and a key thing to understand about public policy is that at the core, it is not rational. The deepest level of policy is entirely based on values and sometimes pure emotions. You cannot rationally come to a reasonable conclusion for whether the nation (city, county, state) should invest its final $1 million dollars in policy to reduce tobacco use, or increase educational support for children with autism, or clean and remodel a popular park. The final decision is going to come down to the values of the voters and of the government’s leadership.

 

The same is true for our individual donations. Is it really best for us to make donations to the Against Malaria Foundation to save lives in countries far away from us? Should we use our donations to help improve the lives of children living right here in our own community? Are we obligated to use our donations to help other people like us who have also gone through medical crisis, trauma, or natural disaster challenges that we have experienced and survived? The heart of these decisions will always be an emotional values decision.

 

We can, however, try to develop institutions that help people ensure that once they have made these value judgement they use their charity in the most meaningful way possible. We can develop social systems and attitudes that encourage people to pool their charitable resources toward one meaningful purpose that aligns with their values, rather than donating a few bucks here and there to a charity that pulls at their emotions (a single large donation to an effective charity can do much more good in the world than multiple smaller donations to charities that range in terms of effectiveness). We can develop organizations that do more to analyze the effectiveness of given charities and develop new systems for looking at how we can make sure our donation does the most good based on where we want to do our good (whether it is saving lives, helping local development, improving education, or something different). We can use our tax system to encourage smart charity rather than stupid charity where celebrities just buy overly priced pictures of themselves from random foundations that claim to have philanthropic purposes but really just pay off porn stars to protect the political prospects of their benefactors (cough-Trump-cough).

 

Ultimately, our brains our wired to be charitable to show people that we are nice caring people. As a result, we don’t really care about the effectiveness of our donation, we just want people to see that we made a donation and that we are the kind of person who is caring and generous enough to help others. This leads us to make stupid donations rather than smart an effective donations, but by changing the institutions surrounding our charitable activity, we can start to actually do good in a rational manner with our charity.

You Are Not Just Yourself

“Much harm is done by a single case of indulgence or greed,” Seneca wrote in a letter saved in the book Letters From a Stoic, “the familiar friend, if he be luxurious, weakens and softens us imperceptibly; the neighbor, if he be rich, rouses our covetousness; the companion, if he be slanderous, rubs off some of his rust upon us, even though we be spotless and sincere. What then do you think the effect will be on character when the world at large assaults it!”

The way we think about ourselves is that we are conscious actors in control of our behaviors, beliefs, worldviews, and actions. Who we are and what we do is under our control. We decide if we want to engage with people, shut ourselves in our room and read all day, be nice to strangers, gossip about our co-workers, and eat at Taco Bell. The reality however, is that much of who we are and what we do is influenced by the people and situations around us. I was recently listening to Rob Reid’s podcast, After On, and his guest described a study looking at the neighbors of people who win new cars as prizes. The number of people who purchase a new car within a short time period after their neighbor wins a car is larger than you would expect just by chance. People seem to be changing their car buying habits when their neighbor gets lucky and wins a new car.

We are never the version of ourselves that is in control of our decisions and behaviors. How we think about the world and what we see when we look at ourselves, the people around us, and the situations we find ourselves in is influenced by the people around us. As Seneca describes, our friends and neighbors can make us feel certain ways, even if we never wanted to feel the way they make us feel. Situations that seem meaningless, like a neighbor buying a new car, can change the way we feel about ourselves.

This idea can be liberating in the sense that we don’t have to believe that we are fully in control of everything. We don’t have to believe that we operate as a completely independent and objective CEO, rationally making perfect decisions about everything. We can take some pressure off of ourselves.

At the same time, this idea can be frustrating. It says that no matter how much you try, things are going to influence you whether you want them to or not. It means that you may be out of luck if you try to change your behavior or try to see the world in a new way. You may have too many forces pushing on you for you to really get outside of the situation that you find yourself in.

Seneca continues, “You should not copy the bad simply because they are many, nor should you hate the many because they are unlike you. Withdraw into yourself, as far as you can. Associate with those who will make a better man of you. Welcome those whom you yourself can improve. The process is mutual; for men learn while they teach.” The advice Seneca gives as a reaction to our susceptibility to be influenced so heavily by the people and world around ourselves is to build to our self-awareness. Reflect deeply on how we act and behave and think about the ways we wish to act and behave. Find people who can be mentors and guides in living the life you think is meaningful, and then turn around and do what you can to help others, because you will learn more by helping others than just by doing. Recognize that you don’t have it all figured out on your own, and that you won’t always see everything happening around you, but try to build your awareness and try to focus on continual improvement. Not in a flashy way, but in a confident way that is always available for those wish to tap into it.

Awareness in Action

In a later written to James Harmon for the book, Take My Advice, the late Murray Bookchin writes, “Our ideas must always be completed, fully thought out, and richly informed by a knowledge of the past.  To separate oneself from the past, to maintain a sense of mere nowness, to deny what reason has to give us, as well as intuition, and most dangerously to leave ones thoughts unfinished, is to risk the grave dangers of manipulation and ignorance.” This quote speaks deeply to me about the importance of awareness and presence in our daily lives.  Bookchin would argue that we must develop a sense of connection in our lives that unifies us with the world around us in multiple ways.  We must be aware of our surroundings and current situations, but we must also be aware of our past and how our past influences our actions today.

I frequently focus on self awareness and for a long time I have worked to cultivate my own thoughts and ideas about the planet away from the television, but I never put things in the perspective of Bookchin.  The television according to Bookchin, isolates us in a space that is neither past nor present, it is a suspended reality where  we give up our thought and allow outside forces to shape us.  Our unique background, our independent existences, and our individual thoughts are pushed aside for a vision of life created by others.  In this quote, the idea that people are influenced by television is pushed beyond the simple and benign world of advertising influences and driven to a perspective of people being shaped by the television they watch.  When we abandon our complete thoughts of the past and fail to analyze our current situation, we open ourselves up to be manipulated by another.  We become easily influenced and accept one perspective as our ticket out of ignorance.

I think that Bookchin would encourage in depth journaling as a way to process the events that happen to us, and help us begin to build an awareness of the world.  This aligns with many of the ideas that Richard Wiseman presents in his book 59 Seconds in which he describes the importance of journaling and writing as reflective exercises.  Writing according to Wiseman provides a chance for the brain to systematically organize and express information.  This systematic approach to reviewing our thoughts and actions helps us build awareness and create new connections in our lives.