Behavioral Economics

Evil Girl Scouts

Ran across this hilarious example on the evils of Girls Scout Cookies while looking around for example of self-control problems.

Unfortunately for me, I was pretty weak from fighting all those earlier urges and had no defense against the most dastardly diet killing villain ever. Girl Scouts and their cookies! “Sir,” this cute, very innocent, albeit completely evil little girl asked, “would you like to buy some girl scout cookies? They are for a good cause.”

I just stared blankly at her for what must have been 3 minutes, begging God to smite this little demon down with a bolt of lightning.Before that could happen though, her mom noticed me just staring at her and thought I was a creeper or something because she came running over to investigate.

“Sir,” the little girl said again with her mom now standing next to her protectively, “well, would you like some cookies?”

By that point, since no lightening had come down and my will power was spent from the drive prior, I started shaking violently. Finally I screaming, “Ok! I give up,” and knocked both the little girl and her mother over as I ran to the table loaded down with boxes and boxes of multicolored Girl Scout cookies, like I was chasing gold at the end of a rainbow.

This is just one anecdote, but the underlying idea—that food is like a drug, and obesity like addiction—is become quite well accepted. The analogy does have a few problems, delineated very nicely in a recent Nature Reviews Neuroscience opinion piece. My main takeaway is that it’s no so much as the analogy that fails, but rather the facile comparison of symptoms. For example, the tolerance and withdrawal symptoms in drug abuse have no direct equivalent in food. Still, the cognitive mechanisms, such as impulsivity and self control, likely underlie both.

Facial Expressions

The last year or so I have been working on a project that incorporates facial expressions of emotions in games. The idea is quite simple although it sounds complicated, we have subjects communicate during a game using computer avatars. The goal is to quantify and model some form of communication. Verbal or written language being way too complicated for me to think about, facial expressions seem more tractable.

The important logistic component is done by having players control a computer avatar using a joystick. This way they are able to create a large range of expressions very quickly. Everything is done in Poser and much of the code is based on software from our collaborator Jesse Spencer-Smith. Lusha wrote the rest of the code to be able to run a game in Poser. All in all, it works surprisingly smoothly!

There is a real difficulty however in conveying the quality of these expressions to colleagues (not to mention grant reviewers!). It's not that surprising in hindsight, but when you say that the players create an expression in 3 seconds, people expect something amateurish and not at all realistic. Compound that with the fact that the way people communicate in academia is still overwhelmingly print-based, and we have a situation where it's difficult to get across a sense of quality of the game. So I've decided to put up some video captures of the faces players are sending each other during games. At some point I'll have to do a screencast of a whole game so people can get a sense of the flow of the software.

Example
This is an example of an expression sent in a stochastic dictator game, from recipient to dictator. The dictator gives the recipient a possibly unfair split. The recipient then decided to sent back the above expression. Needless to say, he is less than pleased. The whole sequence, from dictator's decision to recipient's expression, probably took less than 30 seconds.

Real Life Impunity Game

A number of countries have incentive schemes to encourage couples to have more children. Off the top of my head I can think of Italy, Japan, Singapore, and Russia. As far as I know nobody has thought of cash subsidy in this case as being morally repugnant. But somehow if the government of Nepal offers $650 to subsidize men willing to marry widows, and they in fact are doing just that, women's rights groups and the widows themselves are less than pleased.

This looks like a real-life version of the impunity game. It is similar to an ultimatum game, except rejection only reduces the responder's own payoff, and has no effect on the proposer's. So if as a responder you were offered ($8, $2) split and decide to reject, the allocation would be ($8, $0), so you lose a couple of dollars to make some kind of a point. This is an interesting game in that rejections are inequity raising, rather than reducing as in the case of the ultimatum game. This type of behavior has now been demonstrated in a couple of recent experiments using both humans and monkeys. I think there is also an older paper by Rami Zwick where this game was introduced? Anyway I can't remember.

My question though is: what is the difference between subsidies for child-bearing and marriage? If the answer is that the subsidy is patronizing in that it sounds like it's being given to the husbands, but I don't think it would be any less repugnant to the women if the money were directly given to them.

Yamagishi et al. The private rejection of unfair offers and emotional commitment. PNAS (2009) vol. 106 (28) pp. 11520-11523

Brosnan and De Waal. Monkeys reject unequal pay. Nature (2003) vol. 425 (6955) pp. 297-9

Power of Analogies

I have no idea whether the attribution of causation holds any water, but it's certainly a well-crafted piece of rhetoric.

“I told Boyden: ‘Imagine you just fired up the government printing presses and dumped an endless stream of money into the system. You’d have no way of controlling the money supply,’ ” Mr. Dudek said. “He understood totally and intuitively the importance of maintaining the cap, the key ingredient in our acid rain policy.” A month later, the Bush White House sent Congress a cap-and-trade plan...

They also seem to me to be particularly useful in situations involving repugnant transactions. Perhaps an example of cognitive appraisal?

Fairness as a constraint on profit-seeking: Printer Edition

The other day I found out that, by taping a piece of paper on top of the sensors in my printer, I can stop the printer from randomly canceling print job. Apparently it will stop printing every now and then because it thinks the printer is low on toner, with no warning. Thwarting the evil print manufacturer gave me, in hindsight, an unreasonable amount of pleasure in what amounts to a very small material gain. By comparison, I likely would have considered it a chore fixing a broken printer.

This has a similar flavor to the classic paper Fairness as a Constraint on Profit Seeking by Kahneman, Knetch, and Thaler. They explain several market anomalies by proposing that actions of otherwise profit-maximizing firms are restricted by the consumers' preferences for fairness. The definition of "fairness" is however hard to pin down, not surprisingly since the strategic and social context vary greatly. People typically agree that raising the price of a snow shovel after a snow storm is unfair; 82% in their survey rated an increase of $15 to $20 as unfair (rather stingy of the respondents I think).

They catalogue some different situations where fairness norms are violated, for example, exploitation of increased market power or protecting profits. Maybe what's tying all these together is the role of intentions in fairness interpretations. Steve and I have an upcoming perspective discussing this, so stay tuned (to all 5 of you reading).