Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Tuesday, December 24, 2013

Generosity

Maria Konnikova writes for Scientific American Blogs about the psychology behind gift giving. She cites research on how generosity is a winning game theory strategy, even seen from an self-maximizing economic perspective, because it is so difficult to tell whether you'll ever see that person again:

A group of psychologists from UC-Santa Barbara set out to test the long-standing conundrum that even in anonymous, one-shot games—in other words, in situations where you know that (1) you will never again encounter your partner and (2) no one has any idea what decision you’ve made—people more often than not choose to incur costs themselves in order to allocate benefits to others; an irrational behavior by traditional economic standards if ever there was one. In their model, the team managed to isolate an asymmetry that had previous been ignored: in an uncertain world, it is far more costly to incorrectly identify a situation as one-shot when it is in fact repeated than it is to mistake an actual one-shot encounter for a repeated one. Put differently, it is better to always assume that we will in fact encounter the same partners over and over. So costly is it to make a mistake in the opposite direction that, even absent any reputational or other mechanisms, it makes sense for us to behave generously to anyone we encounter. As the study authors conclude, “Generosity evolves because, at the ultimate level, it is a high-return cooperative strategy…even in the absence of any apparent potential for gain. Human generosity, far from being a thin veneer of cultural conditioning atop a Machiavellian core, may turn out to be a bedrock feature of human nature.”

That makes a lot of sense to me. Often people ask me, as a sociopath, whether I would leave a tip for a service professional whom I thought I would never see again, but I find that hard to imagine because one time I was accosted outside a restaurant by a service professional who felt that I undertipped him. Tipping generously not only had prevented that from happening since, it has also made a positive impression on my some of my dining companions that have had the chutzpah to actually check the tip that I've left, to ensure it was generous enough. So I find the hypo of never seeing a victim again difficult to imagine.

And if you're going to bother giving a gift, better make it count by getting something that they would particularly appreciate, or perhaps that could only come from you. Ariely describes these gifts:

Instead of picking a book from your sister's Amazon wish list, or giving her what you think she should read, go to a bookstore and try to think like her. It's a serious social investment.

The great challenge lies in making the leap into someone else's mind. Psychological research affirms that we are all partial prisoners of our own preferences and have a hard time seeing the world from a different perspective. But whether or not your sister likes the book, it may give her joy to think about you thinking of her.

I understand exactly what Ariely is talking about, having always made this type of tailor-made gift-giving myself. Konnikova suggests that people could do just as well with empathy (or maybe she is saying that this can only be done with empathy?):

Ariely singles out this type of gift as one that makes the mental leap from your own vantage point to that of someone else. It’s a leap that is incredibly difficult to take—exhibiting empathy, let alone perfect empathy to the point of complete confluence with the mind of another person, is a tough feat even in the most conducive of circumstances—but that may be worth taking all the same. For, even if you fail to make it as accurately as you may have wanted, the effort will be noted. The actual accuracy is somewhat beside the point. What matters is that you try to make the shift from your own mindset to someone else’s, that you make the effort to think about what present would be best suited to another person.

What if you don't use empathy to make the leap from your own vantage point to that of someone else? Is it still the thought that counts? 

Sunday, August 18, 2013

Economics and sociopathy

I was talking to an economist friend recently. We were talking about how economics is not just a dismal science, but that economists have a pretty dismal view of human nature, possibly because economists themselves are not generally altruistic or prosocial? He told me that economists are different enough from the general population that economics researchers can't use economics undergraduate students for their experiments because they tend to give very different answers than the average person. Specifically he told me about a game where everyone chooses to either put in a black marble or a white marble in a bag. If you put in a white marble, you increase the overall size of the payout/pie, but you just have one piece of that pie. If you put in a black marble, you get two pieces of the pie, but of a smaller pie. The optimal result would be for everyone to put in white marbles, and a lot of people actually do put in white marbles either because of altruism or optimism or guilt or whatever else. Economists and economics students, however, almost always put in black marbles. My economist friend was using this as evidence that economists are not good people. And if this one scenario was the only thing you knew about economists, perhaps you could say that the results of the experiment are consistent with the economists-as-bad-people hypothesis too.

But I gave him another quick scenario to see how he would handle it: imagine that you are at war, just you and five other fellow soldiers, all standing around in a circle. A grenade gets launched into the middle of the circle. If someone jumps on the grenade, only one person dies. If no one jumps on the grenade, there's a 20% chance someone might die and everyone will suffer moderate to critical injuries. Everyone is equidistant from the grenade and has an equal opportunity to jump on the grenade. Before I tell you what he said, I want the sociopaths who are reading this to think what they would do.






So, I asked my economist friend what he would do and he immediately replied, "I would jump on the grenade." Of course he would. He's rational and cares about efficiency. He would be the type of person in the trolley problem to throw the switch and kill the one to save the five, and apparently that answer doesn't change even when he is the one who needs to die. I think his answer surprised even him, though I'm not sure why. Perhaps because he had convinced himself that economists are soulless or at the very least selfish (i.e., rationally self-interested). But there's nothing remotely selfish or even self-interested about jumping on the grenade.

The reason I knew that this example would "work" on him is that he and I think similarly and it's something that I think I might do too. I like efficiency, and it would be efficient to fall on the grenade. Also I like winning, and it would be "winning" to thwart the enemy. It would be powerful, to smother the force of such a powerful device with just my body. Also I'm impulsive and not particularly attached to life. I actually think that a lot of sociopaths would do the same for one or more of those reasons. In fact, and I wish there was some way to accurately test this, I predict that a higher percentage of sociopaths would jump on the grenade than non-sociopaths, if for nothing else than the indecision or paralyzing fear that a lot of non-sociopaths might experience -- by the time they got around to making the decision, it might be too late. These are just guesses, but I don't think it's crazy to think that sociopaths might be braver and more pro-social in certain situations than normal people, just like economists might be more selfless than the average person in certain situations.

Whether or not my prediction is correct, I think this example also illustrates how dangerous it is to perform a couple experiments in controlled situations and extrapolate the data far beyond those particular situations. Sloppy science writers (and even serious researchers) make this mistake all of the time, e.g. if sociopaths seem to not show empathy in one situation, it's easy to make the (apparently incorrect) presumption that they never feel empathy. The truth is context matters immensely and we only know a sliver of all there is to know about ourselves and others. 

Sunday, June 2, 2013

Why we can't all be empaths

A lot of people think that the book and the blog argue that sociopaths are better than empaths. I make no such claim, I never have. But if people want me to justify my existence, I have some not-specious arguments about why we can be useful and an overall benefit to society. 

Even then, I acknowledge that the reason we work well are because there are so few of us, just like predators. If there were more sociopaths than there are already (maybe 25%), who knows, the world might be chaos. It would definitely throw our ecosystem off and certainly any competitive advantage that a sociopath has now would dwindle down to nothing.

So we can't all be sociopaths (or even have many more than we currently have), but we also can't all be empaths, at least not without throwing our ecosystem into a similar tailspin of chaos. Sociopaths within a society give that society an edge against other societies. And the very presence of sociopaths makes empaths behave in different, more robust and active ways that help propel a society forward instead of letting it stagnate or backslide. 

The NY Times provides an interesting economic analogy to this dynamic in "Why Can't America Be Sweden":

“We cannot all be like the Nordics,” Acemoglu declares, in a 2012 paper, “Choosing Your Own Capitalism in a Globalized World,” written with his colleagues James A. Robinson, a professor of government at Harvard, and Thierry Verdier, scientific director of the Paris School of Economics.

If the “cutthroat leader” – the United States — were to switch to “cuddly capitalism, this would reduce the growth rate of the entire world economy,” the authors argue, by slowing the pace of innovation.
***
These findings, if substantiated, will disappoint those who long for a Swedish-style mixed economy with universal health care, paid maternal leave, child allowances, guaranteed pensions and other desirable social benefits.

In a more detailed paper, “Can’t We All Be More Like Scandinavians?” Acemoglu, Robinson and Verdier expand on their argument that the world is dependent on American leadership in technology and innovation to sustain global growth. In order to maintain its position at the forefront of global innovation, the authors contend, the United States must maintain an economic system that provides great rewards to successful innovators, which “implies greater inequality and greater poverty (and a weaker safety net) for a society encouraging innovation.”
***
The three authors make the case that the interconnected world economy has reached what they call an “asymmetric equilibrium” in which the United States “adopts a ‘cutthroat’ reward structure, with high-powered incentives for success, while other countries free-ride on this frontier economy and choose a more egalitarian, ‘cuddly,’ reward structure.”

Directly challenging what they describe as the consensus view – that a country can substantially expand the welfare state without sacrificing its pioneering role in technological innovation – Acemoglu and his colleagues write that it is “the more ‘cutthroat’ American society that makes possible the more ‘cuddly’ Scandinavian societies based on a comprehensive social safety net, the welfare state and more limited inequality.”

In an e-mail, Acemoglu provided the following analogy: The U.S. is also the military leader of the world, and it cannot imitate Finland and reduce its military to a trivial size without taking into account the global repercussions of this (and I’m saying this as somebody who is strongly opposed to U.S. military interventions around the world).

Of course there are many criticisms to this argument (see the link to the original article), but it's not at all absurd to think that there is some element of truth to the idea that we can't all be the same and still see the sort of dynamic growth and prosperity we've become accustomed to. Similarly, the diversity that everyone (including sociopaths) provides has value to society as a whole.

Jim Fallon spoke similarly of sociopaths as being the members of society who do the "dirty work":

And not just the dirty work but the good work. You don't want your neurosurgeon to be empathetic and caring emotionally when they're working on you. You want them to be cold machines that don't care. Same thing with an investor. . . . A society almost demands that we have psychopaths. It's a very stable feature throughout society in history that these people are there. And they pop up in a very malignant way sometimes but these traits seem to be very useful to society so we almost ask for it, or our genes and our behavior ask for it. 

This is going to be especially useful in the zombie apocalypse. 

Tuesday, October 9, 2012

Wired for risk

This was an interesting article sent to me courtesy of a reader, "Economic decision-making in psychopathy": A comparison with ventromedial prefrontal lesion patients," featuring our good friend Newman as one of the authors. The gist of the article is that "born" sociopaths share certain risking taking and economic decision-making patterns in common with people who have an impaired ventromedial prefrontal cortex, the part of the brain that is associated with risk, fear, and decision-making.

First, the researchers make a distinction between classes of sociopaths:

“primary” (low-anxious) psychopathy is viewed as a direct consequence of some core intrinsic deficit, whereas “secondary” (high-anxious) psychopathy is viewed as an indirect consequence of environmental factors or other psychopathology. 

Next, the sociopaths were given two classic decision-making tasks, the Ultimatum Game and the Dictator Game. Regarding the Ultimatum Game:

In the Ultimatum Game, two players are given an opportunity to split a sum of money. One player (the proposer) offers a portion of the money to the second player (the responder), and keeps the remainder for himself. The responder can either accept the offer (in which case both players split the money as proposed) or reject the offer (in which case both players get nothing). “Rational actor” models predict that the responder would accept any offer, no matter how low. However, relatively small offers (less than 20–30% of the total) are rejected about half the time (Bolton and Zwick, 1995; Guth et al., 1982). The “irrational” rejection of unfair offers has been correlated with feelings of anger (Pillutla and Murnighan, 1996), suggesting that the responder’s ability to regulate anger and frustration plays a critical role in task performance. Patients with vmPFC lesions, who are known to exhibit irritability and poor frustration tolerance despite an otherwise generally blunted affect (Anderson et al., 2006; Barrash et al., 2000), reject an abnormally high proportion of unfair offers (Koenigs and Tranel, 2007). Thus the first aim of this study is to determine whether either of the psychopathic subtypes (primary or secondary) also rejects an abnormally high proportion of unfair offers.

And the Dictator Game:

In the Dictator Game, there are again two players with an opportunity to split a sum of money. However, in this case the responder has no choice but to accept whatever split the proposer offers. Thus, the amount offered by the proposer in the Dictator Game is presumed to reflect a prosocial sentiment, such as empathy or guilt. Patients with vmPFC lesions, who are known to exhibit deficits in empathy and guilt (Anderson et al., 2006; Barrash et al., 2000), offer abnormally low amounts in the Dictator Game (Krajbich et al., 2009). Thus the second aim of this study is whether either of the psychopathic subtypes (primary or secondary) also offers abnormally low amounts in the Dictator Game.

I'm not surprised at all by the results. The only thing I find somewhat puzzling is that the primary and secondary sociopaths differ. I would think that both types would try to shortsell their partners in the games. Unless the secondary sociopaths are a little bit more aware or paranoid that this may be a situation that would leave them vulnerable to the unpredictable social judgment of others?



Tuesday, April 24, 2012

Violence in movies

There is something about violence in movies that I find so appealing.  I'm sure part of it is that it is dramatized in all the right ways to thrill rather than cause any anxiety or harm.  I was thinking about that today on the way to work.  I was driving.  I thought, if you take some people seriously about what they say about sociopaths and loving violence and senseless destruction and power over people, then why is it that I don't cross my lane line to collide head-on into the auto approaching me?  Wouldn't that scare people?  That would be some good fun, right?  I would get to scare the other person half to death, maybe there would be some carnage or death, definitely I would make people "jump."  It's odd that sociopaths can manage to get where they're going half the time without giving into that temptation, right?

But it's not a wonder.  Actually, I thought that was a ridiculous thing to believe.  Except perhaps when we're acting on impulse, sociopaths are generally making rational, cost/benefit decisions in which we determine that the cost, e.g. of damaging our car and risking our own life and health, does not exceed the benefit of "making someone jump" in most situations.  And aren't you glad?  Can you imagine a world in which there actually existed a class of people that were not constrained in any way at all?  But of course it makes sense -- how could an existence sans any restraint ever be evolutionary advantageous enough to outweigh the obvious negatives?  I don't know.  Sometimes I wonder how people can believe the odd things they believe about sociopaths.  There's no logic, just myth and fear mongering.  

But it is true I do like violence when it comes cheaply, like in movies.  And I like this supercut.  I wish that it included some clips from Watchmen and Public Enemies, maybe some others that aren't springing to mind.  Favorite violent scenes, anyone?




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