Thinking, Fast and Slow (47 page)

The essence of the focusing illusion is WYSIATI, giving too much weight to the climate, too little to all the other determinants of well-being. To appreciate how strong this illusion is, take a few seconds to consider the question:

An answer came to your mind immediately; you know how much you like and enjoy your car. Now examine a different question: “
When
do you get pleasure from your car?” The answer to this question may surprise you, but it is straightforward: you get pleasure (or displeasure) from your car when you think about your car, which is probably not very often. Under normal circumstances, you do not spend much time thinking about your car when you are driving it. You think of other things as you drive, and your mood is determined by whatever you think about. Here again, when you tried to rate how much you enjoyed your car, you actually answered JghtA5 aed Jghta much narrower question: “How much pleasure do you get from your car
when you think about it
?” The substitution caused you to ignore the fact that you rarely think about your car, a form of duration neglect. The upshot is a focusing illusion. If you like your car, you are likely to exaggerate the pleasure you derive from it, which will mislead you when you think of the virtues of your current vehicle as well as when you contemplate buying a new one.

A similar bias distorts judgments of the happiness of Californians. When asked about the happiness of Californians, you probably conjure an image of someone attending to a distinctive aspect of the California experience, such as hiking in the summer or admiring the mild winter weather. The focusing illusion arises because Californians actually spend little time attending to these aspects of their life. Moreover, long-term Californians are unlikely to be reminded of the climate when asked for a global evaluation of their life. If you have been there all your life and do not travel much, living in California is like having ten toes: nice, but not something one thinks much about. Thoughts of any aspect of life are more likely to be salient if a contrasting alternative is highly available.

People who recently moved to California will respond differently. Consider an enterprising soul who moved from Ohio to seek happiness in a better climate. For a few years following the move, a question about his satisfaction with life will probably remind him of the move and also evoke thoughts of the contrasting climates in the two states. The comparison will surely favor California, and the attention to that aspect of life may distort its true weight in experience. However, the focusing illusion can also bring comfort. Whether or not the individual is actually happier after the move, he will report himself happier, because thoughts of the climate will make him believe that he is. The focusing illusion can cause people to be wrong about their present state of well-being as well as about the happiness of others, and about their own happiness in the future.

This question almost certainly made you think of a paraplegic who is currently thinking about some aspect of his condition. Your guess about a paraplegic’s mood is therefore likely to be accurate in the early days after a crippling accident; for some time after the event, accident victims think of little else. But over time, with few exceptions, attention is withdrawn from a new situation as it becomes more familiar. The main exceptions are chronic pain, constant exposure to loud noise, and severe depression. Pain and noise are biologically set to be signals that attract attention, and depression involves a self-reinforcing cycle of miserable thoughts. There is therefore no adaptation to these conditions. Paraplegia, however, is not one of the exceptions: detailed observations show that paraplegics are in a fairly good mood more than half of the time as early as one month following their accident—though their mood is certainly somber when they think about their situation. Most of the time, however, paraplegics work, read, enjoy jokes and friends, and get angry when they read about politics in the newspaper. When they are involved in any of these activities, they are not much different from anyone else, and we can expect the experienced well-being of paraplegics to be near normal much of the time. Adaptation to a new situation, whether good or bad, consists in large part of thinking less and less about it. In that sense, most long-term circumstances of life, including paraplegia and marriage, are part-time states that one inhabits only when one at JghtA5 a at Jghttends to them.

One of the privileges of teaching at Princeton is the opportunity to guide bright undergraduates through a research thesis. And one of my favorite experiences in this vein was a project in which Beruria Cohn collected and analyzed data from a survey firm that asked respondents to estimate the proportion of time that paraplegics spend in a bad mood. She split her respondents into two groups: some were told that the crippling accident had occurred a month earlier, some a year earlier. In addition, each respondent indicated whether he or she knew a paraplegic personally. The two groups agreed closely in their judgment about the recent paraplegics: those who knew a paraplegic estimated 75% bad mood; those who had to imagine a paraplegic said 70%. In contrast, the two groups differed sharply in their estimates of the mood of paraplegics a year after the accidents: those who knew a paraplegic offered 41% as their estimate of the time in that bad mood. The estimates of those who were not personally acquainted with a paraplegic averaged 68%. Evidently, those who knew a paraplegic had observed the gradual withdrawal of attention from the condition, but others did not forecast that this adaptation would occur. Judgments about the mood of lottery winners one month and one year after the event showed exactly the same pattern.

We can expect the life satisfaction of paraplegics and those afflicted by other chronic and burdensome conditions to be low relative to their experienced well-being, because the request to evaluate their lives will inevitably remind them of the life of others and of the life they used to lead. Consistent with this idea, recent studies of colostomy patients have produced dramatic inconsistencies between the patients’ experienced well-being and their evaluations of their lives. Experience sampling shows no difference in experienced happiness between these patients and a healthy population. Yet colostomy patients would be willing to trade away years of their life for a shorter life without the colostomy. Furthermore, patients whose colostomy has been reversed remember their time in this condition as awful, and they would give up even more of their remaining life not to have to return to it. Here it appears that the remembering self is subject to a massive focusing illusion about the life that the experiencing self endures quite comfortably.

Daniel Gilbert and Timothy Wilson introduced the word
miswanting
to describe bad choices that arise from errors of affective forecasting. This word deserves to be in everyday language. The focusing illusion (which Gilbert and Wilson call focalism) is a rich source of miswanting. In particular, it makes us prone to exaggerate the effect of significant purchases or changed circumstances on our future well-being.

Compare two commitments that will change some aspects of your life: buying a comfortable new car and joining a group that meets weekly, perhaps a poker or book club. Both experiences will be novel and exciting at the start. The crucial difference is that you will eventually pay little attention to the car as you drive it, but you will always attend to the social interaction to which you committed yourself. By WYSIATI, you are likely to exaggerate the long-term benefits of the car, but you are not likely to make the same mistake for a social gathering or for inherently attention-demanding activities such as playing tennis or learning to play the cello. The focusing illusion creates a bias in favor of goods and experiences that are initially exciting, even if they will eventually lose their appeal. Time is neglected, causing experiences that will retain their attention value in the long term to be appreciated less than they deserve to be.

Time and Time Again

The role of time has been a refrain in this part of the book. It is logical to describe the life of the experiencing self as a series of moments, each with a value. The value of an episode—I have called it a hedonimet
er total—is simply the sum of the values of its moments. But this is not how the mind represents episodes. The remembering self, as I have described it, also tells stories and makes choices, and neither the stories nor the choices properly represent time. In storytelling mode, an episode is represented by a few critical moments, especially the beginning, the peak, and the end. Duration is neglected. We saw this focus on singular moments both in the cold-hand situation and in Violetta’s story.

We saw a different form of duration neglect in prospect theory, in which a state is represented by the transition to it. Winning a lottery yields a new state of wealth that will endure for some time, but decision utility corresponds to the anticipated intensity of the reaction to the news that one has won. The withdrawal of attention and other adaptations to the new state are neglected, as only that thin slice of time is considered. The same focus on the transition to the new state and the same neglect of time and adaptation are found in forecasts of the reaction to chronic diseases, and of course in the focusing illusion. The mistake that people make in the focusing illusion involves attention to selected moments and neglect of what happens at other times. The mind is good with stories, but it does not appear to be well designed for the processing of time.

During the last ten years we have learned many new facts about happiness. But we have also learned that the word
happiness
does not have a simple meaning and should not be used as if it does. Sometimes scientific progress leaves us more puzzled than we were before.

Speaking of Thinking About Life

I began this book by introducing two fictitious characters, spent some time discussing two species, and ended with two selves. The two characters were the intuitive System 1, which does JghtA5 `؇J5 the fast thinking, and the effortful and slower System 2, which does the slow thinking, monitors System 1, and maintains control as best it can within its limited resources. The two species were the fictitious Econs, who live in the land of theory, and the Humans, who act in the real world. The two selves are the experiencing self, which does the living, and the remembering self, which keeps score and makes the choices. In this final chapter I consider some applications of the three distinctions, taking them in reverse order.

Two Selves

The possibility of conflicts between the remembering self and the interests of the experiencing self turned out to be a harder problem than I initially thought. In an early experiment, the cold-hand study, the combination of duration neglect and the peak-end rule led to choices that were manifestly absurd. Why would people willingly expose themselves to unnecessary pain? Our subjects left the choice to their remembering self, preferring to repeat the trial that left the better memory, although it involved more pain. Choosing by the quality of the memory may be justified in extreme cases, for example when post-traumatic stress is a possibility, but the cold-hand experience was not traumatic. An objective observer making the choice for someone else would undoubtedly choose the short exposure, favoring the sufferer’s experiencing self. The choices that people made on their own behalf are fairly described as mistakes. Duration neglect and the peak-end rule in the evaluation of stories, both at the opera and in judgments of Jen’s life, are equally indefensible. It does not make sense to evaluate an entire life by its last moments, or to give no weight to duration in deciding which life is more desirable.

The remembering self is a construction of System 2. However, the distinctive features of the way it evaluates episodes and lives are characteristics of our memory. Duration neglect and the peak-end rule originate in System 1 and do not necessarily correspond to the values of System 2. We believe that duration is important, but our memory tells us it is not. The rules that govern the evaluation of the past are poor guides for decision making, because time does matter. The central fact of our existence is that time is the ultimate finite resource, but the remembering self ignores that reality. The neglect of duration combined with the peak-end rule causes a bias that favors a short period of intense joy over a long period of moderate happiness. The mirror image of the same bias makes us fear a short period of intense but tolerable suffering more than we fear a much longer period of moderate pain. Duration neglect also makes us prone to accept a long period of mild unpleasantness because the end will be better, and it favors giving up an opportunity for a long happy period if it is likely to have a poor ending. To drive the same idea to the point of discomfort, consider the common admonition, “Don’t do it, you will regret it.” The advice sounds wise because anticipated regret is the verdict of the remembering self and we are inclined to accept such judgments as final and conclusive. We should not forget, however, that the perspective of the remembering self is not always correct. An objective observer of the hedonimeter profile, with the interests of the experiencing self in mind, might well offer different advice. The remembering self’s neglect of duration, its exaggerated emphasis on peaks and ends, and its susceptibility to hindsight combine to yield distorted reflections of our actual experience.

In contrast, the duration-weighted conception of well-being treats all moments of life alike, memorable or not. Some moments end up weighted more than others, either because they are memorable Sareeva or because they are important. The time that people spend dwelling on a memorable moment should be included in its duration, adding to its weight. A moment can also gain importance by altering the experience of subsequent moments. For example, an hour spent practicing the violin may enhance the experience of many hours of playing or listening to music years later. Similarly, a brief awful event that causes PTSD should be weighted by the total duration of the long-term misery it causes. In the duration-weighted perspective, we can determine only after the fact that a moment is memorable or meaningful. The statements “I will always remember…” or “this is a meaningful moment” should be taken as promises or predictions, which can be false—and often are—even when uttered with complete sincerity. It is a good bet that many of the things we say we will always remember will be long forgotten ten years later.

The logic of duration weighting is compelling, but it cannot be considered a complete theory of well-being because individuals identify with their remembering self and care about their story. A theory of well-being that ignores what people want cannot be sustained. On the other hand, a theory that ignores what actually happens in people’s lives and focuses exclusively on what they think about their life is not tenable either. The remembering self and the experiencing self must both be considered, because their interests do not always coincide. Philosophers could struggle with these questions for a long time.

The issue of which of the two selves matters more is not a question only for philosophers; it has implications for policies in several domains, notably medicine and welfare. Consider the investment that should be made in the treatment of various medical conditions, including blindness, deafness, or kidney failure. Should the investments be determined by how much people fear these conditions? Should investments be guided by the suffering that patients actually experience? Or should they follow the intensity of the patients’ desire to be relieved from their condition and by the sacrifices that they would be willing to make to achieve that relief? The ranking of blindness and deafness, or of colostomy and dialysis, might well be different depending on which measure of the severity of suffering is used. No easy solution is in sight, but the issue is too important to be ignored.

The possibility of using measures of well-being as indicators to guide government policies has attracted considerable recent interest, both among academics and in several governments in Europe. It is now conceivable, as it was not even a few years ago, that an index of the amount of suffering in society will someday be included in national statistics, along with measures of unemployment, physical disability, and income. This project has come a long way.

Econs and Humans

In everyday speech, we call people reasonable if it is possible to reason with them, if their beliefs are generally in tune with reality, and if their preferences are in line with their interests and their values. The word
rational
conveys an image of greater deliberation, more calculation, and less warmth, but in common language a rational person is certainly reasonable. For economists and decision theorists, the adjective has an altogether different meaning. The only test of rationality is not whether a person’s beliefs and preferences are reasonable, but whether they are internally consistent. A rational person can believe in ghosts so long as all her other beliefs are consistent with the existence of ghosts. A rational person can prefer being hated over being loved, so long as hi Sso as alls preferences are consistent. Rationality is logical coherence—reasonable or not. Econs are rational by this definition, but there is overwhelming evidence that Humans cannot be. An Econ would not be susceptible to priming, WYSIATI, narrow framing, the inside view, or preference reversals, which Humans cannot consistently avoid.

The definition of rationality as coherence is impossibly restrictive; it demands adherence to rules of logic that a finite mind is not able to implement. Reasonable people cannot be rational by that definition, but they should not be branded as irrational for that reason.
Irrational
is a strong word, which connotes impulsivity, emotionality, and a stubborn resistance to reasonable argument. I often cringe when my work with Amos is credited with demonstrating that human choices are irrational, when in fact our research only showed that Humans are not well described by the rational-agent model.

Although Humans are not irrational, they often need help to make more accurate judgments and better decisions, and in some cases policies and institutions can provide that help. These claims may seem innocuous, but they are in fact quite controversial. As interpreted by the important Chicago school of economics, faith in human rationality is closely linked to an ideology in which it is unnecessary and even immoral to protect people against their choices. Rational people should be free, and they should be responsible for taking care of themselves. Milton Friedman, the leading figure in that school, expressed this view in the title of one of his popular books:
Free to Choose
.

The assumption that agents are rational provides the intellectual foundation for the libertarian approach to public policy: do not interfere with the individual’s right to choose, unless the choices harm others. Libertarian policies are further bolstered by admiration for the efficiency of markets in allocating goods to the people who are willing to pay the most for them. A famous example of the Chicago approach is titled
A Theory of Rational Addiction
; it explains how a rational agent with a strong preference for intense and immediate gratification may make the rational decision to accept future addiction as a consequence. I once heard Gary Becker, one of the authors of that article, who is also a Nobel laureate of the Chicago school, argue in a lighter vein, but not entirely as a joke, that we should consider the possibility of explaining the so-called obesity epidemic by people’s belief that a cure for diabetes will soon become available. He was making a valuable point: when we observe people acting in ways that seem odd, we should first examine the possibility that they have a good reason to do what they do. Psychological interpretations should only be invoked when the reasons become implausible—which Becker’s explanation of obesity probably is.

In a nation of Econs, government should keep out of the way, allowing the Econs to act as they choose, so long as they do not harm others. If a motorcycle rider chooses to ride without a helmet, a libertarian will support his right to do so. Citizens know what they are doing, even when they choose not to save for their old age, or when they expose themselves to addictive substances. There is sometimes a hard edge to this position: elderly people who did not save enough for retirement get little more sympathy than someone who complains about the bill after consuming a large meal at a restaurant. Much is therefore at stake in the debate between the Chicago school and the behavioral economists, who reject the extreme form of the rational-agent model. Freedom is not a contested value; all the participants in the debate are in favor of it. But life is more complex for behavioral economists than for tru S th17;e believers in human rationality. No behavioral economist favors a state that will force its citizens to eat a balanced diet and to watch only television programs that are good for the soul. For behavioral economists, however, freedom has a cost, which is borne by individuals who make bad choices, and by a society that feels obligated to help them. The decision of whether or not to protect individuals against their mistakes therefore presents a dilemma for behavioral economists. The economists of the Chicago school do not face that problem, because rational agents do not make mistakes. For adherents of this school, freedom is free of charge.

In 2008 the economist Richard Thaler and the jurist Cass Sunstein teamed up to write a book,
Nudge
, which quickly became an international bestseller and the bible of behavioral economics. Their book introduced several new words into the language, including Econs and Humans. It also presented a set of solutions to the dilemma of how to help people make good decisions without curtailing their freedom. Thaler and Sunstein advocate a position of libertarian paternalism, in which the state and other institutions are allowed to
nudge
people to make decisions that serve their own long-term interests. The designation of joining a pension plan as the default option is an example of a nudge. It is difficult to argue that anyone’s freedom is diminished by being automatically enrolled in the plan, when they merely have to check a box to opt out. As we saw earlier, the framing of the individual’s decision—Thaler and Sunstein call it choice architecture—has a huge effect on the outcome. The nudge is based on sound psychology, which I described earlier. The default option is naturally perceived as the normal choice. Deviating from the normal choice is an act of commission, which requires more effortful deliberation, takes on more responsibility, and is more likely to evoke regret than doing nothing. These are powerful forces that may guide the decision of someone who is otherwise unsure of what to do.

Humans, more than Econs, also need protection from others who deliberately exploit their weaknesses—and especially the quirks of System 1 and the laziness of System 2. Rational agents are assumed to make important decisions carefully, and to use all the information that is provided to them. An Econ will read and understand the fine print of a contract before signing it, but Humans usually do not. An unscrupulous firm that designs contracts that customers will routinely sign without reading has considerable legal leeway in hiding important information in plain sight. A pernicious implication of the rational-agent model in its extreme form is that customers are assumed to need no protection beyond ensuring that the relevant information is disclosed. The size of the print and the complexity of the language in the disclosure are not considered relevant—an Econ knows how to deal with small print when it matters. In contrast, the recommendations of
Nudge
require firms to offer contracts that are sufficiently simple to be read and understood by Human customers. It is a good sign that some of these recommendations have encountered significant opposition from firms whose profits might suffer if their customers were better informed. A world in which firms compete by offering better products is preferable to one in which the winner is the firm that is best at obfuscation.