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Small, subtle interventions can influence people’s decisions without restricting their freedom of choice.
Nudges can be used to promote desirable behaviors, such as saving for retirement or eating healthier foods.
Examples
System 1: Driving a car on a familiar route, making a snap judgment about someone’s trustworthiness.
System 2: Solving a complex math problem, making a major financial decision.
Cognitive Bias: Someone who is afraid of flying might overestimate the likelihood of a plane crash because they can easily recall recent news stories about plane crashes.
Prospect Theory: A person might be more reluctant to sell a stock that has lost value than to sell a stock that has gained value, even if the potential gain or loss is the same.
Anchoring Effect: A real estate agent might anchor the price of a house at a high value, which can influence potential buyers’ perceptions of its worth.
Nudge: A government might send out reminders to citizens about the importance of saving for retirement, which can encourage them to contribute more to their retirement accounts.
Best Quotes
«In the end, it is not the magnitude of our knowledge but the depth of our wisdom that will shape our decisions.»
«System 1 is like an impulsive child who acts without thinking, while System 2 is like a cautious adult who weighs the pros and cons.»
«Humans are an anomaly in the animal kingdom. We have the capacity to think about our thinking.»
«Our ability to construct reality is stronger than our ability to discover reality.»
Criticism
Some critics argue that Kahneman oversimplifies the complexity of human decision-making.
Others question the generalizability of his findings across different cultures and contexts.
The book has been criticized for focusing too much on individual biases and not enough on the role of social and environmental factors in decision-making.
Influence
Nobel Prize: Kahneman was awarded the Nobel Prize in Economics in 2002 for his work on behavioral economics.
Popularization of Behavioral Economics: The book has helped popularize the field of behavioral economics, which integrates insights from psychology into economic models.
Applications in Policymaking: nudge theory has been adopted by governments and organizations to design policies that encourage desirable behaviors.
Interesting Facts
The book was translated into over 40 languages.
It has sold over 5 million copies worldwide.
Kahneman conducted many of his famous experiments while working as a psychologist at the Hebrew University of Jerusalem.
WORDLIST:
without conscious effort – без сознательных усилий
heuristics – эвристика
mental shortcuts – ментальные ярлыки
biases – предубеждения
slow and deliberate – медленное и обдуманное
underlying facts – лежащие в основе факты
cognitive biases – когнитивные искажения
confirmation bias – склонность к подтверждению
interpret information – интерпретировать информацию
availability heuristic – эвристика доступности
gains and losses – выигрыши и потери
nudge theory – теория подталкивания
subtle interventions – тонкие вмешательства
without restricting their freedom of choice – не ограничивая их свободу выбора
trustworthiness – надежность
snap judgment – мгновенное суждение
reluctant – нерешительный
importance of saving for retirement – важность сбережений на пенсию
magnitude – величина
cautious adult who weighs the pros and cons – осторожный взрослый, который взвешивает все «за» и «против»
complexity – сложность
which integrates insights from psychology into economic models – которая интегрирует идеи из психологии в экономические модели
applications in policymaking – применение в политике
Exercise 6
Are these statements TRUE or FALSE?
1. System 1 thinking is slow and deliberate.
2. Cognitive biases can lead to errors in judgment.
3. Prospect theory suggests that people evaluate gains and losses equally.
4. The anchoring effect occurs when people rely too heavily on the first piece of information they receive.
5. Nudge theory can be used to restrict people’s freedom of choice.
6. «Thinking, Fast and Slow» was written by Richard Thaler.
7. The book has been translated into over 40 languages.
8. Kahneman was awarded the Nobel Prize in Economics for his work on behavioral economics.
UNIT 6
The Social Animal by Elliot Aronson (1972)
Key Ideas:
Attribution Theory:
People are motivated to understand the causes of their own and others’ behavior.
Attribution theory describes how people make these attributions, which can be either internal (due to personal factors) or external (due to situational factors).
The fundamental attribution error is the tendency to overestimate internal attributions and underestimate external attributions when explaining others’ behavior.
Self-serving bias is the tendency to attribute positive outcomes to internal factors and negative outcomes to external factors when explaining our own behavior.
Groupthink:
Groupthink is a phenomenon that occurs when a group of people are highly cohesive and have a strong desire for consensus.
This can lead to the suppression of dissenting opinions and a lack of critical thinking.
Groupthink can have negative consequences, such as poor decision-making and unethical behavior.
Cognitive Dissonance:
Cognitive dissonance is the uncomfortable state that people experience when they hold two or more contradictory beliefs.
This discomfort motivates people to reduce dissonance by changing their attitudes or behaviors.
For example, if someone smokes but knows that smoking is bad for their health, they may experience cognitive dissonance. They may reduce this dissonance by quitting smoking or by rationalizing their behavior (e.g., «I only smoke a few cigarettes a day»).
Discrimination:
Discrimination is a form of prejudice that involves treating someone negatively based on their perceived membership in a category.
Discrimination can be overt (e.g., refusing to hire someone because of their race) or subtle (e.g., microaggressions).
Discrimination can have negative consequences for both the individual and society.
Other Key Ideas:
Social influence: How people’s thoughts, feelings, and behaviors are influenced by others.
Conformity: The tendency to change one’s behavior or beliefs in order to fit in with a group.
Obedience: The tendency to follow the orders of an authority figure, even when those orders are unethical.
Aggression: The intentional infliction of harm on another person.
Altruism: The selfless concern for the welfare of others.
Best Quotes:
«Social psychology is the study of how individuals think, feel, and behave in a social context.»
«Attribution theory is concerned with how people explain the causes of their own and others’ behavior.»
«Cognitive dissonance is an uncomfortable state that motivates people to change their attitudes or behaviors.»
«Discrimination is a serious problem that can have negative consequences for both the individual and society.»
Criticism:
Some critics argue that Aronson’s focus on individual behavior ignores the role of social structures and power dynamics.
Others criticize his use of laboratory experiments, claiming they fail to capture the complexity of real-world social interactions.
Influence:
The Social Animal has had a profound influence on the field of social psychology. It is one of the most widely cited books in the discipline.
Aronson’s research on attribution theory, groupthink, and self-serving bias has shaped our understanding of human behavior.
The book has also been widely used as a textbook and has influenced generations of social psychologists.
Interesting Facts:
The Social Animal was one of the first textbooks to cover the entire field of social psychology.
