Behavioral
A Simple Thumbs Up or Down Eliminates Racial Bias in Online Ratings
Yale SOM’s Tristan Botelho and his co-authors found that the ubiquitous five-star rating system could subtly propagate discrimination. But they also found a surprisingly simple fix: switching to a two-point scale (thumbs up or thumbs down) eliminated subtle racial bias in customer ratings of gig workers.
Do we listen to opinion leaders?
Are there leaders in everyday life? A long body of literature argues that a small number of individuals have an outsize influence on what the rest of us buy, wear, and consume. But marketing professionals and scholars have been debating how to make use of these opinion leaders.
Does cheating matter?
Behavioral economist Dan Ariely's research has found that the cumulative impact of various forms of cheating has a significant effect on the world economy. His experiments show that people, across a wide range of situations, will cheat just a little bit, even when given the opportunity to get away with more; but reminders of core values can reduce cheating. He discusses the implications of these ideas for managers and professional organizations.
What is neuroeconomics?
The new field of neuroeconomics looks at how economic decision-making actually happens inside the brain. Jonathan Cohen, co-director of the Princeton Neuroscience Institute at Princeton University, describes insights that are emerging from the collaborative work of neuroscientists, psychologists, and economists.
How Do We Improve Retirement Saving?
James Choi describes his research into one simple way to raise participation rates in 401k plans: change the default.
Is optimism rational?
We learn in kindergarten to look on the bright side. But is optimism good for us? And do we adjust our sunny expectations based on our experiences? Cade Massey, an assistant professor of organizational behavior at Yale SOM, discusses his work.
What was Polaroid thinking?
Polaroid went from ubiquity to obsolescence as digital photography replaced the print. But as early as the 1960s, Polaroid had been doing research into digital imaging. Did mistaken assumptions keep the company from making the transition to the digital world?
Is risk rational?
Misunderstanding of risk was a major factor in the subprime crisis and ensuing recession. Andrew Lo argues that one has to look at both logical and emotional parts of the brain to grasp how people respond to financial risk.
Do you need a nudge?
Richard Thaler outlines how principles from behavioral economics can help policymakers and managers achieve better outcomes.
Does money change your thinking?
You encounter it every day. You might count it or spend it or wish you had more of it. But can just thinking about money affect your behavior?
Are we good at making choices?
Do the choices we make as consumers serve our economic interests? Do they even reflect our real preferences? Three Yale scholars discuss research — their own and others' — that sheds light on these questions.