Framing and Nudges

Framing and Nudges

"Framing works because people tend to be somewhat mindless, passive decision makers," write Cass Sunstein and Richard Thaler in their book Nudge. "Their Reflective System does not do the work that would be required to check and see whether reframing the question would produce a different answer."   Framing is an important rhetorical tool. We … Continue reading Framing and Nudges

The Value of Objects - Joe Abittan

The Value of Objects

My dad collected Hot Wheels toy cars. He had thousands of cars, all in their packaging, with limited editions and rare valuable cars all collected and organized together. It was a hobby, and an example of how much value an individual can attach to objects that don't mean anything to other people.   On my … Continue reading The Value of Objects

Framing Costs and Losses - Joe Abittan

Framing Costs and Losses

"Losses evokes stronger negative feelings than costs. Choices are not reality-bound because System 1 is not reality-bound," writes Daniel Kahneman in Thinking Fast and Slow.   We do not like losses. The idea of a loss, of having the status quo changed in a negative way without it being our deliberate choice, is hard for … Continue reading Framing Costs and Losses

Desperate Gambles

Desperate Gambles

Daniel Kahneman worked with Amos Tversky to develop many of the concepts that today create the principle of Prospect Theory. Many people are familiar with the psychological and economic principle of Game Theory, and Prospect Theory is a similar psychological and economic theory of how people behave when faced with uncertainty. In his book Thinking … Continue reading Desperate Gambles

Signaling Fairness with Altruistic Punishment

Maintaining the Rules of Fairness with Signaling and Altruistic Punishment

Society is held together by many unspoken rules of fairness, and maintaining rules of fairness is messy but rewarding work. We don't just advocate for fairness in our own lives, but will go out of our way to call out unfairness when we see it hampering the lives of others. We will protest, march in … Continue reading Maintaining the Rules of Fairness with Signaling and Altruistic Punishment

The Dominance of Loss Aversion - Joe Abittan

The Dominance of Loss Aversion

Loss aversion is a dominant force in many of our individual lives and in many of our societies. At this moment, I think it is one of the greatest barriers to change and growth that our entire world needs to overcome in order to move forward to address climate change, to create more equitable and … Continue reading The Dominance of Loss Aversion

Loss Aversion & Golf

Loss Aversion & Golf

Daniel Kahneman presents research from University of Pennsylvania economists Devin Pope and Maurice Schweitzer to demonstrate the power of loss aversion in his book Thinking Fast and Slow. Pope and Schweitzer specifically look at golf, and how professional golfers perform when putting to demonstrate that loss aversion factors into the golfers' performance, a conclusion that … Continue reading Loss Aversion & Golf

Avoiding Gambles

Avoiding Gambles

"Most people dislike risk (the chance of receiving the lowest possible outcome), and if they are offered a choice between a gamble and an amount equal to its expected value they will pick the sure thing," writes Daniel Kahneman in Thinking Fast and Slow. I don't want to get too far into expected value, but … Continue reading Avoiding Gambles