51 min listen
174. The Elements of Choice, with Dr. Eric J. Johnson
FromThe Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics
174. The Elements of Choice, with Dr. Eric J. Johnson
FromThe Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics
ratings:
Length:
51 minutes
Released:
Oct 15, 2021
Format:
Podcast episode
Description
A few months ago, in episode 162 you got to hear from Leidy Klotz about his fantastic new book Subtract, which is based on this question of why we humans look to add first when often subtracting can be a better option. It is a little bit of minimalism/essentialism and a really great episode to help people overcome loss aversion and see that, as he says, “less is not a loss,” such a cool insight. Anyway, while he and I were doing our pre and post-interview chat, he mentioned that his friend and colleague Eric Johnson had a book coming out soon called The Elements of Choice and that I should talk with him about it, so here we are. Dr. Johnson is not a newbie to the space by any means, as you will hear in the interview. He has had the opportunity to work and train with some of the most notable names in the field, including Herbert Simon, Amos Tversky, as well as his friends Richard Thaler and Cass Sunstein. He is the Norman Eig Professor of Business and the Director of the Center for Decision Sciences at Columbia Business School. He has been the president of both the Society for Judgment and Decision Making and the Society for Neuroeconomics. He has decades of experience and definitely knows his stuff, which is one of the many reasons I was so honored to chat with him and share the conversation with you. Show Notes: [00:07] In today’s episode I’m introducing you to Dr. Eric J. Johnson, author of the brand new book, The Elements of Choice. [03:57] Eric shares his background and how he got into the field. His research has always been about helping people make choices and how the way we present information to them affects their choices. [05:40] He was fascinated with the choices he observed people making. [07:06] Eric shares research from a former student of his. She implemented the health records systems at a major New York hospital. [09:18] Memory played an important role in the doctor’s behavior in her research. [11:31] When you put in the time to plan the architecture upfront, the actual intention itself can be very small. Designers often have more influence than they realize. [12:42] He shares his research about taking different doors at the Copenhagen airport. [14:06] Little bits of effort at the beginning of the decision have an influence throughout the course of the decision. Choice architecture usually works by favoring one path over another. [16:10] If I know exactly what you want I would give you just one option, but the person making the choice knows a lot about themselves so they often know more about what they want. [18:10] There is a trade-off between how much you are asking of people (in terms of deciding) and how much variety you need to give them so they can find the option that is best for them. [20:45] Choice is not determined by myself and my preferences alone. [21:38] We are all designers all the time. [23:14] Order will have an influence depending on your medium. There are many other things as a designer to think about also. [24:50] Defaults are powerful. Eric and Dan Goldstein researched defaults in organ donations. [27:07] Not all situations are the same, so you really need to look across all the studies and understand your own situation and context. [28:44] Our preferences aren’t written in stone. We have many preferences. Depending on what comes to mind, I might make different choices. [29:36] Eric shares one of his favorite studies where they ask people about climate change and would they pay a carbon tax (or carbon offset) to fight climate change. [32:26] One study is not enough to actually build a science. We need to do cross studies. [35:16] Eric shares how choice architecture can affect COVID vaccinations. [38:00] Defaults work because they endow you with the option. You think less about the disadvantages. [39:26] The decisions of our privacy and cookies are decisions we make multiple times a day. [40:32] Choice architecture and designers have amazing influence. Hopefully, people wil
Released:
Oct 15, 2021
Format:
Podcast episode
Titles in the series (100)
1. Unlocking The Secrets Of The Brain: That is what behavioral economics is all about. And it is what I am so passionate about. by The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics