Friday, July 15, 2011

Sex and Violence

Our relationship and defense of the first amendment is often peculiar. An excellent piece in the NYT discusses this quoting Justice Breyer.

But what sense does it make to forbid selling to a 13-year-old boy a magazine with an image of a nude woman, while protecting a sale to that 13-year-old of an interactive video game in which he actively but virtually binds and gags the woman, then tortures and kills her?
Maybe this is one of the reasons we have the one of the highest teen pregnancy rates in the developed world, along with one of the highest rates of violent crime.

Nudge

Order matters. Whether it is the order on a ballot. The order of choices in a survey, or the order of options on a menu.
“Very small but cumulated decreases in food intake may be sufficient to have significant effects, even erasing obesity over a period of years” (Rozin et al., 2011). In two studies, one a lab study and the other a real-world study, we examine the effect of manipulating the position of different foods on a restaurant menu. Items placed at the beginning or the end of the list of their category options were up to twice as popular as when they were placed in the center of the list. Given this effect, placing healthier menu items at the top or bottom of item lists and less healthy ones in their center (e.g., sugared drinks vs. calorie-free drinks) should result in some increase in favor of healthier food choices. [Judgment and Decision Making, Vol. 6, No. 4, June 2011, pp. 333–342]
In the case of voting:

And so it is with voting. Candidates listed first on the ballot get about two percentage points more votes on average than they would have if they had been listed later (flipping a 49 to 51 defeat into a 51 to 49 victory). In fact, in about half the races I have studied, the advantage of first place is even bigger — certainly big enough to win some elections these days.

Order bias in surveys can stem from the order of the questions in the survey or the order of the answer choice within a question. For example early questions can prejudice the answers to later questions through a priming effect. In the context of categorical answers provided, if they are inherently unordered, their order might affect respondents choice over them.

Modern software allows you to randomize both if you anticipate a large problem.


There is also an order bias when it comes to evaluating people, be it for a job or a contest. I imagine this will be tested with American Idol data at some point. But it is better to be first or last, not in the middle.

Tuesday, July 12, 2011

The Incidence of Mandates

The general public has a sense of tax incidence. They know that sometimes they bear the cost of sales tax, or at other times you hear them say: "corporations just pass that on to consumers", when referring to the corporate tax. We know payroll taxes are generally born by the employee, not the employer. But many people do not understand the difference between legal and economic incidence. Lawmakers for example, seem to have issues with that.  Anyhow, here is a recent study that has an interesting conclusion:

A key issue surrounding employer benefit mandates is the incidence on workers through wages and employment. In this paper, we address this question using a pay-or-play policy implemented in San Francisco in 2008 that requires employers to either provide health benefits or contribute to a public option health plan. We estimate the impact on employment and earnings for the private sector overall, as well as for high impact sectors: retail and accommodation and food services. We develop a novel approach for individual case studies by combining both spatial discontinuity in policies and permutation-type inference using other MSAs. We find that, compared to control counties, employment and earnings patterns in San Francisco did not change appreciably following the policy. This was true for industries most affected by the mandate, as well as for overall private sector employment. The results are generally robust to inclusion of different control groups, county-specific time trends, and varying pre-periods. In contrast to the small effects on the labor market, we do find that about 25% of surveyed restaurants imposed customer surcharges, with the median surcharge being 4% of the bill. These results indicate that while little of the burden of the mandate fell on San Francisco workers, approximately half of the incidence of the mandate fell on consumers.

Nicknames

This is how they get started. I am now "the TJ".

Tuesday, June 28, 2011

Learning

On my recent drive back from Madison I was listening to a show entitled "Healthy Minds" as part of the "On Being" program from NPR. At that moment I really missed my co-pilot. I once knew a girl who would have loved to listen to that episode, and I would have loved to hear her opinion. The focus of the hour was on Richard Davidson, and in part his work teaching kindergarteners in Madison how to meditate. I know, sounds wacky. But if you think about it, much of our modern education concerns stuff we want students to know. Yet very little time - if any - is spent on how we might make it easier for students to know and learn the stuff we want them too. For example, I was recently sent this paper: Social-Psychological Interventions in Education:They’re Not Magic: 
Recent randomized experiments have found that seemingly “small” socialpsychological interventions in education—that is, brief exercises that target students’ thoughts, feelings, and beliefs in and about school—can lead to large gains in student achievement and sharply reduce achievement gaps even months and years later. These interventions do not teach students academic content but instead target students’ psychology, such as their beliefs that they have the potential to improve their intelligence or that they belong and are valued in school. When social-psychological interventions have lasting effects, it can seem surprising and even “magical,” leading people either to think of them as quick fixes to complicated problems or to consider them unworthy of serious consideration. The present article discourages both responses. It reviews the theoretical basis of several prominent social-psychological interventions and emphasizes that they have lasting effects because they target students’ subjective experiences in school, because they use persuasive yet stealthy methods for conveying psychological ideas, and because they tap into recursive processes present in educational environments. By understanding psychological interventions as powerful but context-dependent tools, educational researchers will be better equipped to take them to scale. This review concludes by discussing challenges to scaling psychological interventions and how these challenges may be overcome.
Some examples include having students who demonstrate test anxiety, write the fears on paper, before taking the exam. It has the effect of helping them reduce their anxiety - let it go - and improves their test scores dramatically. Richard Davidson also talked about how people can make themselves happy. The brain as it turns out has a great deal of plasticity. And it is within our capacity to alter it.

Thursday, June 16, 2011

Dan Ariely and Qualtrics

An interesting interview with Dan Ariely in part about his use of surveys. Particularly interesting for students in Behavioral Econ and BUS 230. From the interview:

WHAT ADVICE DO YOU HAVE FOR MARKET RESEARCHERS?


What people do is not what they say. In general, most of our findings suggest that we should not think very highly of focus groups.


I suspect that many market research companies use focus groups because they want a statement to put in a PowerPoint presentation for a client. But the problem is that what people say doesn’t always reflect what they think or, even more important, the reasons for their actions.


SO, THE QUESTION IS, WHAT SHOULD YOU ASK?


You can ask people what they have done, or what they think they will do in the future. They can answer those questions. But, the moment you get into reasons, into why, interpreting their answers as correct becomes much more tricky.


It is also important to ask about categories that are ones which people can accurately quantify. The more concrete your response scale is, the more likely people are to answer your questions in an informative way.


HOW WOULD YOU RECOMMEND RESEARCHERS USE SCALES?


Take the question, “How often have you done X?”


If you create a scale from “very rarely” to “very frequently”, that’s not as useful as offering, “2 times last week” or “3 times last week”.


The more concrete you get, the more people feel inclined to answer accurately and honestly.


ANY MORE ADVICE ON HOW TO USE SCALES?


Often people use a 5-point response scale, but we find most people have an aversion to the extremes. This means that when we use a 5-point scale, effectively we are using a 3-point scale. That makes our sensitivity of our measurement less useful.


I would encourage researchers to think whether people will have that extreme aversion, and if that is the case, to have more levels. A continuous scale with just 2 anchors in the extremes in such cases is ideal.