I welcome the human emotion today we're going to look at the question of how to
motions shape our everyday choices
this is our third series on judgment and decision-making
where we'll look at a motion in choice an answer the question
just alluded to have to our feelings actually shape the way we make choices
in everyday life
so here's a quote that I'd like to read with you
it says the capacity of the human mind for formulating and solving complex
problems
is very small compared with the size that the problems who solution is
required for objectively rational behavior
in the real world Sissoko by Herbert Simon who won the 1978 Nobel Prize in
Economics
and I wanna now think about me think about the rational human mind how does
this relate to the way you make choices
risk-taking and the following our roadmap today
and in particular a look at the role for motion and how it shapes the way we make
choices how does a motion to shape shape
the kinds arrests were willing to take as well as those were not
so let's start with this concept at making choices in camera motions
actually shaped the choices we make
so for someone begin with the question as and
are is choosing always rational so economists assume that humans are
rational right
they put human beings in the equation and they say
okay well the steps in rational decision-making a human should follow
should be as follows: you clearly define a problem
you gather the relevant information including alternatives you identify the
evaluation criteria
you wait the criteria against giving goals evaluate alternative
I use alternate on each criterion and select an alternate
that Matt maximize criteria but if you put human beings in the equation
are they always following these rational decision-making steps
and it's not why so what we find is theirs on the one hand the rational
model assumptions that
we kinda went earlier that include considering alternatives and comparing
their probably outcomes
using absolute standards and factual information and really systematically
always evaluating alternative simultaneously in
were making choices choose along with the higher path but what we find is that
real life decision making is not
always rational right and real-life organizational evidence suggests that
instead on this right can calmly see that we have limited information
processing
cap capabilities and often we only consider a small set of alternatives
instead we have an implicit favorite and so we process packs in different ways
and we valid alternative sequentially
and often just choose the one that seems to be quote good enough
so we don't seem to always operate in these rational ways to make choices
or make decisions so it seems that the rational model assumptions may not be
correct
and what story here at this concept them I have eliminate this which is the
paradox
a choice right so we know that when people are offered to many investment
options for their savings
they have difficulty choosing right and choosing and often wind up not saving it
all
so here's an example from the paradox of choice that
you find that when people are given a set have 24 jars of jam
only sixty percent black Julie approach and only three percent while actually
buy
any of the stars whereas if they are sampling from a smaller says you can see
here in the picture only six Etta James
40 percent approach but 30 percent by
right so it's almost as if we have fewer choices were more likely to actually
choose to buy something
seems that paradoxical right in and doesn't seem to follow this rational
model a decision making
so people think that there's these different processing systems we have for
making choices
and a walk through these right now and I want you to think about which in these
two systems
might be most heavily influenced by our own emotions
so this is really work that was laid out by Daniel Kahneman
who laid out what he talked about is a system one which is a more intuitive
system persist into that's more effortful thinking
he would say so let's go through a few examples here to eliminate the system
one versus system to distinction
so here's a question I want you to consider
a ball in the back costs one dollar and ten cents in total
the back costs one dollar more them the ball
so how much does the ball cost think about it for a second
okay what we find is that when people answer really correctly
on the intuitive system will say ten cents but if people sort of think more
deliberately
we know the correct answer is actually a dollar right five cents
plus a dollar a five let's go through another example
it takes five machines five minutes to make
5 bridget's so how long will it take
hundred machines to make a hundred widgets
art go
how many as you answered the into an answer which is a hundred minutes
versus the correct answer which just goes each machine
takes five minutes to make a widget so in five minutes
a hundred machines will make 100 widgets sore seems kinda distinction between
these two systems already intuitive system and what might be the more
effortful
system leading to a correct answer finally
here's a last question so in a lake there's a pattern
lily pads the patch doubles in size every day
if it takes 48 days for the patch to cover the entire lake
how long would it take for the patch to cover have to Lake
right go what would you guess how many days
the into to the answer many people often give us 24 days
while the correct more delivered ever ever for answers actually 47 days
so again this is this distinction between our system one which is an
intuitive system
and system to more effortful system
so am the point here is that and you're most likely to be affected by
framing when you're in a system one mode so let's go through the southern sample
here
so imagine that the United States is preparing for that for it
an outbreak have an unusual disease
that is expected to kill six hundred people to alternative programs have been
proposed
assume that the exact scientific estimates the consequences are the
programs are as follows:
program see 400 people will die
programme de there's a one-third probability that no one will die
and a two-thirds probability that six hundred people
what I so people are often asked which program do you prefer
and as I said earlier the point is that you're often affected by the framing up
these programs write when you're in a system one intuitive mode
and actually these two programs are objectively the same
however changing to a loss frame
dramatically shifts preferences towards risk seeking behavior
so people are typically risk-averse when it comes to Kaine's and mercy king when
it comes to losses
see can see here if you find them differently how does that change what
kinda program you want a pic program see now says 200 people
will be saved right so again changing it now 28 gain
frame dramatically may shift your preference stores which other programs
you're likely to prefer
so when we think about emotions we know that strong emotions seem to promote
more system one
thinking and decision-making so this accounts for things such as framing a
fax
sunk cost escalation of commitment auction fevers and leadership decision
making studies right and so interestingly what we're seeing is that
really fascinating the arm motions seem to promote this more
automatic and intuitive kind decision making inferences the kinds of choices
that we're making so we've talked a little bit about making choices in this
distinction between system one
more intuitive and system to or certain effortful
types a process information in ways that making decisions when it comes to simple
sorted
calculations on a common reflection task as well as more important decisions when
it comes to which kinda program are you going to evaluate and choose
when it comes to saving lives how does it then
influence risk-taking alluded to this a little let's delve into this a bit more
and think about
how does a motion shape choices such as the kinds arrests were willing to take
versus those that were more versus towards so I think about risk-taking one
other studies that
has often been a lot of attention here comes to sexual risk-taking
this is a study by Dan are alien colleagues called the
the heat of the moment the effective sexual arousal on sexual decision making
so this abstract reads despite the social importance of decisions taken in
the heat of the moment
very little research has actually examined the effective sexual arousal
on judgment and decision-making so here we examine the effective sexual arousal
induced by self-stimulation I'm judgments and hypothetical decisions
made by male college students
so Milwaukee through his provocative study so here
you had male participants enter the lab and their assigned to one of two
conditions on either the top or bottom row
so one was a self stimulation conditions so their sin ti
that condition idea masturbation or neutral state where they
literally did nothing then they were given images service sexual
the sexual nature and after asked to answer questions
indicating how appealing they found arrange a sexual stimuli
and activities both visual and written questionnaires
finally at the end here's what's really interesting they described their
willingness to engage
in unsafe sex so this is the risk-taking willingness boxes here at
see here at the far right when there are at least and the results are really
fascinating so
you see that increased sexual arousal in the moment
this is our self stimulation condition when compared to neutral condition at
PAC
Impax profound a reserve judgment and decision-making
so the heat of the moment really seems to change the kinds oppressed
that we're willing to take so you ratchet up the emotional arousal in the
sexual domain
and will be more likely to take all kinds arrests so you can see here for
example
on higher scores and the arouse yourself some
stimulation condition compared to the initial condition across a whole range
of questions rights you can see the difference course here
so people who are in this more sort of heat of the moment a row state
rate higher on items such as can you imagine
having sex with someone who's extremely fat can you enjoy having sex with
someone you hated
on is peace smell cigarette smoke a rousing
would be fun to type your sexual partner keeper for to kiss
that have sex appeal and honors kissing frustrating so there's
arranged questions here and then gets really interesting
are these more rest taking questions again we're seeing
individuals who were induced into a state of sexual arousal
are more likely to do things such as apply pressure sexually so
would you keep trying to have sex after your date said no
you know would use the form in a drug to increase the chance that she would have
sex with you
so they're more like to engage in sort of sexual person behavior
as well as more likely to take risk-taking choices when it comes to
save sexual practice
so they would say endorse you know i'm for example
let's see a condom decreases sexual pleasure they would
agree more with that a calm their fears a sexual spontaneity they wouldn't do
that to you
would you use a condom even if you are afraid that a woman might change your
mind
while you want to get it right so they're more likely to both apply sexual
person
pressure and they're more likely to endorse questions that are associated
with unsafe sexual practices
so we know that emotional arousal specially in the sexual domain
watch profoundly influence the kinds of decisions people make
when it comes to important social and sexual practice related behaviors
so what about emotional valence and other kinds arrests take me here is
outside the sexual domain
so we know just broadly speaking that positive we're happy faces
actually make us more likely to take Chris and negative and angry faces
make us least likely to take rest so there's something about the positive
valence domain
generally and specifically with respect to sexual arousal
that increases are likely hit up wanting to just take risks and go for it
it's almost as if positive emotions release are emotional breaks
thinking about earlier lecture you know we've talked about emotional breaks in
the domain emotion regulations laws in the meantime adolescence
on and that positive emotions really seem to just released these inhibitory
breaks
whereas negative emotions maybe actions seem to help a supply inhibitory breaks
in Vegas
less likely to engage in risk-taking behaviors
so now with our brief introduction had to say to you
decision making in choice election as well as risk taking and the role that
emotion plays
we're gonna turn to our takeaway questions
so first question asks how to rational model assumptions purses organizational
evidence
differ in the approach to human decision-making
second can you describe this distinction we talked about stay between system one
and system to processing and which these two systems is a motion seeking to most
heavily
impact or implants and finally
how do motion arousal an emotional valence
influence risk-taking both general variety
and have a specific kind of a ride related to sexual behavior
and sexually safe practices that we talked about today
so now they're taking questions on it earned her expert interview to conclude
our lecture for today this is partly experts and emotion interview series
will have to cut that out later so today for experts in a motion interview series
will be speaking with doctor michael Morton
on consumerism an emotion so doctor Norton is an associate professor
Business Administration in marketing unit
and marvin bower fellow at the Harvard Business School he holds a BA in
Psychology in English from Williams College
and a PhD in psychology from Princeton University
prior to joining Harvard Business School doctor Norton was a fellow at the MIT
Media Lab and MIT Sloan School of Management
he is the coauthor along with Elizabeth Dunne have the book happy money
the signs smarter spending his work has been published a number of leading
academic journals
including science the journal Personality and Social Psychology
psychological science and the Journal of Consumer Research
his work is also been covered in media outlets including The Economist the
Financial Times The Wall Street Journal and The Washington Post
doctor Norton is also appeared on national public radio and written op-eds
for the New York Times Forbes
and Los Angeles Times his research has twice been featured in the New York
Times Magazine year in ideas issue
in 2007 for his work on ambiguity promoting liking
and in 2009 on the counter itself his
the ATF acting labour leads to lab was featured in Harvard Business Review is
breakthrough ideas
in 2009 in 2010 he won the theoretical innovation prize from the site Society
of Personality and Social Psychology
in 2011 he won the sage young scholars award from the foundation for social and
personality psychology
and in 2012 he was selected for wired magazine smart list
as one of the 50 people cool change the world so now turn to our experts in
motion interview
with doctor michael Morton on consumerism emotion