Archive — Social science

In storytelling and service design, easy is boring — Daniele Catalanotto — Enigma

Illustration of a rollercoaster

Why it may not always be right to design as smooth a journey as possible.

This idea seems counter-intuitive at first, but makes perfect sense on further reflection.

…people who had an issue with a service that was later resolved gave a better rating to it than people who didn’t have any.

It reminds me of a story (which I now cannot find) about someone who annually camped out for nights on end to get tickets for a particular event. One year, this person’s dedication was rewarded with free tickets. This gift offended the person. They derived their utility from the effort they were putting in (or perhaps in showing that effort to other people). The value was in the struggle.

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Labour’s broadband plan won’t work — but let’s have a national debate to find a plan that does — Bryan Glick — Computer Weekly Editor’s Blog

A balanced piece that considers the pros and cons of Labour’s proposal to nationalise Openreach and promise free broadband for all.

What’s notable is that the only reason we’ve reached this stage is because of the utter failure of BT to do this job properly (particularly in rural areas). It is constantly being “dragged kicking and screaming” to do the basics. This has left the UK needlessly lagging behind.

Still, they’ve got the Champions League rights, huh?

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Why did the UK become a failed state? — Simon Wren-Lewis — mainly macro

This post is about how a policy (crashing out of the EU) that will do nearly everyone harm and some great harm seems to have considerable, albeit still minority, support…

You either have to assume that a third of the population has gone mad, or instead see this as a fundamental failure of information. The UK is a failed state because the producers of information have made it fail.

According to Simon Wren-Lewis, this information problem is being facilitated by the media.

In one sense, the idea that people don’t have enough information to make an informed decision is nothing new. As I’ve written in the past, ignorance is inevitable.

But there does seem to be something particular going on in Britain right now that is causing something even worse than mere ignorance.

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Own it! — Matt Jukes — Notbinary

On the incredible story about Hertz suing Accenture for a failed “digital transformation project”.

Alarm bells ring at the best of times when website redesigns are described as “digital transformation”. But to then completely outsource the product owner role — to the same management consultancy firm that was carrying out the redesign — underlines just how much the top brass seemingly didn’t get it.

Particularly important is this:

The private sector is NOT intrinsically better at these things than the public sector. Occasions like this and the TSB meltdown should never be celebrated but should surely be greeted by a wry smile by those of us who have been hearing about the incompetence of public service digital for years from some corners — and particularly why there was never any need to bring things in-house because all the expertise was with the big suppliers.

I would argue that this isn’t even just about digital. The idea that public sector organisations are inherently worse at anything than the private sector has long been spurious. Large organisations perhaps do find certain things more difficult — but in both the public and private sector.

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On blogs in the social media age — Cal Newport, Study Hacks

Typewriter

On blogs in the social media age — Cal Newport, Study Hacks

Putting into economic terms the distinction between blogging and social media, and articulating what we have lost through the decline of blogging.

If you want attention for your blog you have to earn it through a combination of quality, in the sense that you’re producing something valuable for your readers, and trust, in the sense that you’ve produced enough good stuff over time to establish a good reputation with the fellow bloggers whose links will help grow your audience.

I first realised this about blogging when it became clear that comments sections on major websites were almost always cesspits. People in comments sections are generally attempting to freeride on the quality of the website they are posting on.

Bloggers, on the other hand, really need to be high-quality to get any sort of audience at all. That makes blogs generally good.

Social media is quite the opposite. To start getting traction on social media, the threshold is rather low. In fact, often, lower quality works better.

Link via Khürt Williams

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Lottery math is human math

Lottery math is human math

It’s irrational to buy a lottery ticket. And yet, millions do, even more when the prize is huge.

As economists will point out, people don’t buy a lottery ticket for an x% chance of winning millions. They buy a lottery ticket for to dream of winning millions.

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Economists have lost the trust of politicians

Economists have lost the trust of politicians

It’s always good to read/see/hear Stephanie Flanders. Here she asks why politicians no longer have a favourite economist, in the way that Margaret Thatcher liked Milton Friedman and John F Kennedy admired John Kenneth Galbraith.

In one sense, this feels like a concern I have been reading about for a decade or two. But it also feels like an extension of the more recent phenomenon of refusing to listen to experts.

Nevertheless, there are some real questions for economics to answer. Why does it not have the influence today that it enjoyed in previous decades?

We’re also hearing mainstream economists talk more loudly about the possibility of shifting the balance back toward labor with wealth taxes and reduced taxes on earned income. That’s a big shift for a profession that seemed to think until recently that reducing the tax on capital was always and everywhere a good thing. It will be interesting to see how long it takes for an elected politician to decide that any of this advice is worth listening to.

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Sin taxes are less efficient than they look

Sin taxes are less efficient than they look

Very interesting piece on the pros and cons of sin taxes (taxes on things like tobacco, alcohol).

Implied, but not quite explicitly mentioned here, is the fact that because such items tend to have low price elasticity of demand (in other words, price rises don’t change consumption habits all that much) — because they are usually addictive. As such, they are excellent revenue generators for governments.

This is an issue that’s well worth being on top of, as such taxes increasingly cover new things — like sugar and plastic bags.

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Study shows immigrants are twice as likely to become entrepreneurs

Study shows immigrants are twice as likely to become entrepreneurs

Economic studies are one way to measure the impact of immigration.

Personally, I like to measure it another way. I like to look at my son — the great-grandson of a Mexican immigrant — while he plays cricket with his friends, nearly all of whom are second-generation Indian immigrants.

When I watch my son play cricket with his friends, I come to the same conclusion the economists at Wharton do:

Our new immigrant friends are enriching our lives and making our economy better…

It’s time to say this sort of thing more loudly. There are clear and well-understood economic benefits of immigration. But people who dislike immigration don’t do so for economic reasons (even if they kid on that they do).

We should be clearer about the ways in which immigration and diversity enrich our lives as a whole. And just how sad and pathetic our lives would be if people didn’t move around and mix with others.

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Britain’s open borders policy

Britain’s open borders policy

Whilst cycling the other day, I crossed the Leicestershire-Rutland border. And I was shocked to see…nothing. No border controls, no passport checks, no customs officials. Here in Rutland we have an open borders policy.

Chris Dillow makes the point that most of the debate around immigration and borders does not relate to economics.

This is part of the reason why it’s futile to try to argue with Brexiteers or Scottish independence fanatics around the economics of creating new borders. When it comes down to it, they just don’t care.

Economicky arguments for migration controls are just distractions and, I suspect, often dishonest ones.

Feelings around immigration boil down to feelings about the other.

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The endowment effect: Why you can’t let go of your possessions

The endowment effect: Why you can’t let go of your possessions

Insights from behavioural science on why people overvalue possessions they already own.

Psychologists have also concluded that this overvaluation may stem from our sense of ownership itself. We value something more simply because it is ours. If we own a car, laptop, or watch of a certain model, we would similarly overvalue that same object owned by someone else because we own one ourselves.

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How much would I have to pay you to quit Facebook?

How much would I have to pay you to quit Facebook?

Many people may feel like they are addicted to Facebook. But it’s amazing to see just how little people actually value it.

Economists have been carrying out experiments to see how much people would have to be paid to do without certain types of websites. By this measure, social media appears to be the very bottom of the pile — worth almost 60 times less than search.

Their rough-and-ready conclusion is that the typical person would have to be paid about $17,500 a year to do without internet search engines, $8,500 to abandon email and $3,500 to quit using digital maps. Video streaming through sites such as Netflix and YouTube is worth over $1,150 a year; ecommerce $850, and social media just over $300.

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The amazing psychology of Japanese train stations

The amazing psychology of Japanese train stations

How Japan uses behavioural science (nudge theory) to keep its railways flowing efficiently.

Tokyo is home to the world’s busiest train stations, with the capital’s rail operators handling a combined 13 billion passenger trips annually. Ridership of that volume requires a deft blend of engineering, planning, and psychology. Beneath the bustle, unobtrusive features are designed to unconsciously manipulate passenger behavior, via light, sound, and other means. Japan’s boundless creativity in this realm reflects the deep consideration given to public transportation in the country.

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Bertrand Russell’s chicken (and why it was not an economist)

Bertrand Russell’s chicken (and why it was not an economist)

How introspection can lead to greater understanding — and how it may not.

The chicken that is fed by the farmer each morning may well have a theory that it will always be fed each morning – it becomes a ‘law’. And it works every day, until the day the chicken is instead slaughtered.

…Economics is at a disadvantage compared to the physical sciences because we cannot do so many types of experiments (although we are doing more and more), but we have another source of evidence: introspection… why is the farmer doing this? What is in it for him? If I was the farmer, why would I do this? And of course trying to answer that question might have led them to the unfortunate truth.

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The dark art of stealing from self-checkouts

The dark art of stealing from self-checkouts

Anyone who pays for more than half of their stuff in self checkout is a total moron.

I have long wondered how much stealing goes on at self-checkouts. It turns out, quite a lot — but presumably not enough to make many retailers think twice about having them. What’s interesting is that many self-checkout thieves are apparently otherwise generally law-abiding.

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AI don’t kill people, people do

AI don’t kill people, people do

Reflections on whether technological advances will ‘take our jobs’.

…[I]n Western societies, technical advancement has allowed many of us to extricate ourselves from physical, dangerous and demeaning forms of work, and to create careers that are fulfilling beyond renumeration: creatively, intellectually, socially… “job satisfaction”.

Historically, technological advances haven’t meant humans losing jobs. But it has meant we have taken on increasingly complex and interesting jobs. Perhaps the future will bring us further job satisfaction.

That’s not a bad place to be at all. A reminder that we should be grateful for the luxury we have in being able to pursue a good career in the first place, rather than slaving away to make ends meet.

See also: Why you shouldn’t follow your passion

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Wealth inequality is even worse in reputation economies

Wealth inequality is even worse in reputation economies

Cory Doctorow on how reputation economies (like the rating system satirised in the Black Mirror episode Nosedive) have a series of undesirable effects.

…reputation is useless as a hedge against the real nightmare of a setup like Ebay: the long con. It doesn’t cost much, nor does it take much work, to build up sleeper identities on Ebay, fake storefronts that sell un­remarkable goods at reasonable prices, earning A+++ GREAT SELLER tickmarks, even for years, until one day, that account lists a bunch of high-value items on the service, pockets the buyers’ funds, and walks off.

Reputation works badly and fails badly – it’s a lose-lose situation all around.

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Nick Clegg meets Richard Thaler: ‘All it would take to stop Brexit is a couple of dozen brave Tories’

Nick Clegg meets Richard Thaler: ‘All it would take to stop Brexit is a couple of dozen brave Tories’

The Guardian set Nick Clegg up for a Skype interview with Richard Thaler, who has recently been awarded the Nobel economics prize.

Thaler was a big influence on the Conservative–Liberal Democrat coalition and it is clear from this interview that Thaler and Clegg admire each other somewhat.

At times the interview may come across to some as typical smug metropolitan centrist dadism, with the pair shaking their heads at how stupid everyone else is being. But when you read Nick Clegg’s anecdote about speaking to a voter in Chesterfield, you understand why he feels that way.

I remember speaking to a guy leaning on the fence outside his house and saying: “Any chance you’ll vote for the Liberal Democrats?” And he said: “No way.” And I said: “Why not?” And he said: “Because of all these asylum seekers.” And I knew for a fact that not a single asylum seeker had been dispersed to Chesterfield. So I said to him: “Oh, have you seen these asylum seekers in the supermarket or the GP’s surgery?” And he said something to me that has remained with me ever since. He said: “No, I haven’t seen any of them, but I know they’re everywhere.”

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