I admit it, from the title, and most likely from my excited writing style in the rest of this post, it will very much seem like I’ve been paid to write this by the bank. But the truth of the matter is much more mundane: I’m simply childishly excited by new toys, and my newest toy at the moment is the bank account I just opened with the new completely-online bank NUMBER26. At the moment, the service is only available to customers in Germany and Austria, but there are plans to roll out to other countries relatively soon.
I was going to go with “Morals, Mice, and Markets” as the title for this post, but I just couldn’t resist the rare chance at a weak Steinbeck pun. These morally relevant mouse markets I speak of are those described wonderfully by Professor Armin Falk at his keynote speech at the International Conference on Consumer Rights (at which I gave a somewhat less gripping talk on European Net Neutrality). His talk, though somewhat less creatively named than I would have done, was an absolutely fascinating look at the potential effects of markets on moral behaviour and investigating whether people make decisions in a market situation which they would, for moral reasons, never make in a more proximate individual situation. Continue reading Of Mice and Markets
Any of you who have the misfortune of reading my blog regularly (i.e. more than once) might have noticed a bit of a trend, in that I tend to rather effusively extol the virtues of Coursera.org and the courses I have taken with them. Well, it seems I am not alone, as the site recently won both the official award and the people’s choice award in the Education category in the 2014 Webby Awards. Continue reading Coursera is Wonderful! But Don’t Just Take My Word For It
Whenever justifying to myself and others precisely why I spend several hours a week taking part in online classes with Coursera rather than actually working on more pressing responsibilities, such as my job as a research fellow at the German research centre for consumer law or my nascent PhD thesis, I inevitably turn to the excuse that these courses are part of a broader continuing education, as well as being of interdisciplinary (such a useful term) relevance. Imagine my pleasant surprise then recently, at a conference co-organised by our research centre (Forschungsstelle für Verbraucherrecht) on consumer protection and investors, to find that not only once, but at multiple points during the conference my most recent sources of undisciplined distraction were of direct relevance to the talks being given. In a room packed with legal academics, practising lawyers, economists and various consumer protectors it is perhaps not that surprising that my new-found interest in behavioural economics, thanks to Dan Ariely’s fascinating “Beginners Guide to Irrationality” class, became extremely useful; furthermore, and somewhat surprisingly given the reputation of us legal-types for being amoral argumentative robots, my recent experiences of Paul Bloom’s “Moralities of Everyday Life” turned out to be relevant. The latter was discussed in reference to Daniel Kahneman‘s dual process theory of human reasoning – (1) intuition, and (2) reasoning – which I first encountered as a way of judging how and why we initially judge something as moral or immoral, but which of course is also of the utmost relevance when discussing how consumers reach decisions in a behavioural economics world. The former was discussed repeatedly as speakers discussed the failings of current preconceptions about the behaviour of “rational” consumers. Continue reading Homo Irrationalis: Consumer Policy, Information and Irrationality
As I’m currently in the process of writing something a little more substantial about the ethics of donations, in particular donations connected with incentives, I found the assignment set this week by Dan Ariely in his Coursera class on Irrationality particularly interesting. Dan asked us to come up with a theoretical solution to a real world problem using some of the observations and experimental results regarding people’s irrational behaviour. I found the reading regarding organ donation particularly fascinating, especially the fact that, despite people being sure that they would only reach such an important decision after careful consideration, most of us in fact do make snap decisions about certain big decisions and are heavily influenced by our environment. This opens up interesting policy questions about to what extent we can or should use our understanding of people’s behaviour to influence their decisions. I, for one, have found myself more than once debating whether an “opt-out” or “mandated choice” system should be implemented at national level (incidentally, I think the standard “opt-in” model to be far too ineffective to defend, and in fact, due to its connection to sadly low levels of organ donation, unethical to leave in place). You can read my short suggestion below, keeping in mind I wrote this quickly at the end of the work-day, as I was about to leave the office. Nonetheless I think it might be a point worth exploring.