Showing posts with label Economics-Behavioral. Show all posts
Showing posts with label Economics-Behavioral. Show all posts

Wednesday, August 7, 2024

Review of Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink

This book review was written by Eugene Kernes   

Book can be found in: 
Book Club Event = Book List (02/08/2025)
Intriguing Connections = 1) How To and Not To Run a Business, 2) How To Allocate Resources?



Watch Short Review

Excerpts
“Of course, the starting point for any discussion of motivation in the workplace is a simple fact of life: People have to earn a living.  Salary, contract payments, some benefits, a few perks are what I call “baseline rewards.”  If someone’s baseline rewards aren’t adequate or equitable, her focus will be on the unfairness of her situation and the anxiety of her circumstance.  You’ll get neither the predictability of extrinsic motivation nor the weirdness of intrinsic motivation.  You’ll get very little motivation at all.  The best use of money as a motivator is to pay people enough to take the issue of money off the table.” – Daniel H. Pink, Chapter 2: Seven Reasons Carrots and Sticks (Often) Don’t Work…, Page 33

“In other words, rewards can perform a weird sort of behavioral alchemy: They can transform an interesting task into a drudge.  They can turn play into work.  And by diminishing intrinsic motivation, they can send performance, creativity, and even upstanding behavior toppling like dominoes.  Let’s call this the Sawyer Effect.” – Daniel H. Pink, Chapter 2: Seven Reasons Carrots and Sticks (Often) Don’t Work…, Page 35

“Extrinsic rewards can be effective for algorithmic tasks – those that depend on following an existing formula to its logical conclusion.  But for more right-brain undertakings – those that demand flexible problem-solving, inventiveness, or conceptual understanding – contingent rewards can be dangerous.  Rewarded subjects often have a harder time seeing the periphery and crafting original solutions.” – Daniel H. Pink, Chapter 2: Seven Reasons Carrots and Sticks (Often) Don’t Work…, Page 44


Review

Is This An Overview?

Motivating others through extrinsic rewards and punishments is more complex than just providing benefits.  The purpose of extrinsic motivation was to encouraging activities with rewards to get more of the wanted activities, while discouraging activities with punishment to get less of the activities.  The problem is that extrinsic motivation has negative effects. 

 

When extrinsic rewards are introduced, people lose their intrinsic interest in the activity.  Rewards transform interesting tasks into drudgery, play transforms into work.  Rewards diminish intrinsic motivation which harms performance, creativity, and appropriate behavior.  Rewards provide a temporary productivity boost, at the cost of productivity after the boost.

 

Extrinsic rewards behave like an addiction, as they provide temporary happiness while needing larger rewards later to have the same effect.  When rewarded, people do not do more than what gives them the reward.  Rather than encourage wanted behavior, extrinsic motivation can encourage unwanted behavior.  When rewarded for satisfying short term goals, goals imposed by others, extrinsic motivation can induce unethical behavior as people will seek to satisfy the goal with less regard to the consequences of the methods chosen. 

 

Extrinsic motivation, such as money, is useful as a baseline reward.  To pay people enough for money not to be part of their list of problems.  Rewards can make algorithmic, routine tasks more productive, but hurt creative tasks.  Rather than extrinsic motivation, people can be intrinsically motivated to find joy in what they do.  Rather than restrict behavior, people can be intrinsically motived through their own autonomy.

 

Caveats?

A use for extrinsic motivation is to provide enough baseline rewards, but there is not enough information about baseline rewards.  There is uncertainty about when baseline rewards become enough.  There is also a social aspect to baseline rewards, as people can be affected by the rewards of others.  The alternative methods to motivation have mixed qualities.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What are biological drives?  How do biological drives effect motivation?
•What is the difference between extrinsic incentives and intrinsic incentives?
•What is intrinsic motivation? 
•What happened during the 1940s Harlow experiments?
•What happened during the 1960s Deci experiments?
•What is Maslow’s Hierarchy?
•What is flow?
•How does economics see human economic behavior? 
•What are open source projects?
•How do open source projects complete with for profit projects?
•What is the Sawyer effect?
•What happens to children when they are extrinsically rewarded for learning?
•What is the Candle Problem experiment? 
•What happened to blood donations when given a monetary paying for the blood donations?
•How does goal setting effect motivation?
•How does goal setting effect ethics?
•What happened at the day-care center when punishing parents for picking up their kids late?
•How are extrinsic rewards like an addition? 
•What are the flaws of extrinsic reward and punishment? 
•When do extrinsic rewards work? 
•What are alternative motivators for algorithmic tasks? 
•What is self-determination theory (SDT)?
•Who are Type I and Type X? 
•Who are Type A and Type B?
•What do leaders think of those who work for their organizations? 
•What are ROWEs?
•How can organizations give more autonomy to their workforce?  What effect does autonomy have on the workforce? 
•How do lawyers operate under billable hours? 
•How do self-appraisals work?

Book Details
Edition:                   First Riverhead trade paperback edition
Publisher:               Riverhead Books [Penguin Group]
Edition ISBN:         9781594484803
Pages to read:          226
Publication:             2011
1st Edition:              2009
Format:                    Paperback

Ratings out of 5:
Readability    5
Content          5
Overall          5






Friday, October 27, 2023

Review of The Darwin Economy: Liberty, Competition, and the Common Good Robert H. Frank

This book review was written by Eugene Kernes   

Book can be found in: 
Book Club Event = Book List (07/06/2024)
Intriguing Connections = 1) How Competitive Is Competition?, 2) The Evolution of Evolution


Watch Short Review

Excerpts

“Darwin’s analysis revealed a systemic flaw in the dynamic of competition.  The failures he identified resulted not from too little competition, but from the very logic of the process itself.  The central premise of his theory was that natural selection favored variants of traits and behaviors insofar as they enhanced the reproductive fitness of the individual animals that bore them.  If a trait made the individual better able to survive and reproduce, it would be favored.  Otherwise, it would eventually vanish.  In many cases, Darwin recognized, the same variant that served the individual’s interest would also serve the interest of its species.  But he also saw that many traits promoted individual interest to the detriment of the species.” – Robert H. Frank, Chapter 2: Darwin’s Wedge, Page 33

“Many other traits, however, increase the reproductive fitness of each individual while simultaneously imposing significant costs on large subgroups of the species.  Such conflicts are especially likely for traits that confer advantage in an individual’s head-to-head competition with members of its own species.” – Robert H. Frank, Chapter 2: Darwin’s Wedge, Page 34

“In a stripped-down version of an arms race, one nation gains advantage over a rival by building additional armaments, which prompts the rival to build additional armaments of its own to restore the balance.  The first nation then acquires still more weaponry, provoking yet another response from its rival, and so on.  When the dust settles, neither side enjoys greater security, despite having spent a substantial share of its national resources on armaments.” – Robert H. Frank, Chapter 5: Putting the Positional Consumption Beast on a Diet, Page 75


Review

Is This An Overview?

Competition is usually thought of as favorable, as the better competitor will be rewarded while worse competitors will be removed.  Making the system better for everyone.  But, competition is not always beneficial, and can lead to harmful consequences for the group.  A consequent that occurs through the process of competition.  An insight that comes from Charles Darwin.  Evolution by natural selection favors the fittest, those who have favorable traits for survival and reproduction.  Traits such as behaviors and physical features.  Those who are fittest, pass on their favorable traits which become broadly shared with the group.  While there are traits that enhance the group, there are also traits that hurt the group.  The individual’s traits can make the individual more competitive within the species or group, but also make the individual more vulnerable to predators or other groups.  Leading to traits being passed on that are better for the individual but worse for the group, reducing the groups intergenerational fitness.  Traits that are to the detriment of the species.

The effect that competition has on a group depends on whether the individual and group interests are aligned.  If the interests are aligned, everyone benefits.  If they are not alighted, everyone loses.  Interests tend not to align when the competition is among members of the same group.  Another feature of harmful competition, is that fitness depends on conferring a relative advantage, rather than an absolute advantage.  The competitor just needs to be more helpful than the competition. 

In this way do individuals within various fields and industries, escalate their claims and change their behavior to appear relatively better while imposing costs on society.  Sparking collective action problems.  Within politics, political competition to maintain political independence depends on defending the state from opposition.  This can lead to an arms race, in which every state builds armaments to make sure they are secure from their opposition.  But the opposition does the same, build more armaments.  As every state builds armaments, creates a situation in which every state pays more for armaments without greater security.   

 

Are There More Examples Of Problems Caused By competition?

There are various examples of competition creating collective action problems, one is about hockey.  Hockey players have an advantage when they play without a helmet, but that is risky.  But if everyone does not wear a helmet, then there is no advantage.  This incentivizes the collective restriction on behavior by imposing a policy of wearing a helmet.

 

How Does Government Effect Behavior?

Neither markets nor government are perfect.  There are tasks that government does better, such as collective actions tasks that include national defense and pubic infrastructure.  Favorable opinions of government occur when there are good public services.  Weakest governments that provide little public benefits are deemed ineffective and corrupt.  As government is needed, especially to resolve collective action, better to have an effective government.

To operate and resolve the collective action problems, government needs to be funded by tax revenue.  Without a tax, there would be no government to resolve collective action problems.  Taxes generate revenue and discourage the activity being taxed.  Taxes are problematic when they discourage useful activities such as job creation, but taxes can be helpful when discouraging activities that are harmful to others.  Taxes on harmful activity produce revenue while discouraging harmful behavior.

 

Caveats?

This book is mired in group polarization.  Within politics and economics.  The oppositions claims are simplified, and appear to have only one or a few explanations and reasons to provide.  The author is ready with chapters filled with explanations to prove the opposition’s few ideas wrong.  Much of the author’s argument is about defending the value of government, and about the role of taxes.  That taxes can be used to discourage the detrimental competition while providing tax revenue. 

The author repeats the simplified claims about an opposing political framework, as if the opponents make the same claims that the author can counter using various arguments.  Making much of the disagreement, a one-sided argument against political claims that are not represented in the book.  The attacks become contradictory, for the author attacks a political claim but recognizes that in practice the opposite happens, but still blames those making the disapproved political claim. 

The author proposes that Charles Darwin takes precedence as foundational for economics.  But, the author acknowledges that Darwin learned from economists such as Thomas Malthus and David Ricardo.  The main reason for favoring Darwin is due to the concept of relative advantage, which is superior to the absolute advantage of Adam Smith.  The author’s favor is contradictory, for two reasons.  First, Ricardo identified relative advantage, in what economists call comparative advantage.  The author keeps claiming that economists failed to recognize context and relative position, even though they do and the ideas are not original to Darwin.  Second, for a book about evolution, the author implies that ideas do not evolve.  The author keeps referencing all economic opposition as claiming favor for a single term from Adam Smith, the invisible hand.  Besides the fact that Adam Smith’s work was not limited a single term which was not central to Smith’s work, and that economists do not use that term to explain all their views.  The ideas of Smith were also improved, changed, and transformed.  Economic ideas evolved.  The views about competition have evolved. 

There are also plenty of contradictory economic arguments being made.  In a chapter, the author claims that safety is costly and that it does not make sense to be completely safe.  This claim was made in a chapter about private firms.  In another chapter, arguing that safety is beneficial because it prevents more expensive harm.  This claim was made in a chapter about public funds.  The reason the claims are contradictory is because the author does not consider the same variable when making the claims.  As in, the author chooses the variables that support the author’s claims, but dismisses the other variables.

In chapters about taxes, there is a claim that those hurt by the tax system, specifically those who lack appropriate income, can be monetarily compensated.  Many economists make the claim about compensating those who are losing due to economic policy or activity.  The problem is that historically, claims about potential compensation did not materialize into actual compensation.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What are the effects of competition?
•How can competition have harmful consequences? 
•Who was Charles Darwin? 
•Who are the fittest by evolutionary standards?
•How does the relative position have on competition?
•What is a positional good? 
•What is an arms race?
•What is Coase Theorem? 
•What is the Invisible Hand? 
•How does competition effect the bull elk? 
•What are the collective action problems with hockey players?
•What is the role of the government? 
•How to overcome the destructive competition? 
•What happened to labor-managed firms? 
•How does government use tax revenue?
•How do taxes and their use effect incomes? 
•Why do some societies regulate behavior more than others? 
•How to transfer income? 
•How does success and merit effect incomes?
•How does luck effect income? 
•What is trickle-down theory? 
•How does regret effect cognitive errors? 

Book Details
Publisher:               Princeton University Press
Edition ISBN:         9780691153193
Pages to read:          211
Publication:             2012
1st Edition:              2011
Format:                    eBook 

Ratings out of 5:
Readability    5
Content          4
Overall          4






Sunday, October 15, 2023

Review of Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism by George A. Akerlof, Robert J. Shiller

This book review was written by Eugene Kernes   

Book can be found in: 
Intriguing Connections = 1) Learning Economics: Basic to Advanced


Watch Short Review

Excerpts

“The multiplier theory explained that a small dip in expenditure could have greatly magnified effects.  If there were a small but substantial decline in consumption expenditures because people overreacted in fear to a stock market crash, such as the one in 1929, then this would act just like a negative government stimulus.  For each dollar that people cut their consumption, there would be another round of expenditure cuts, then another and then another, resulting in a much larger decline in economic activity than would be attributable to the initial shock.” – George A. Akerlof, and Robert J. Shiller, Chapter One: Confidence and Its Multipliers, Page 44

“The need for consumer protection is always a cause of some importance, but for a variety of reasons it is not the Achilles heel of capitalism.  Consumers are sufficiently knowledgeable that, for the most part, they do not buy things frivolously.  Most of their purchases are recurring, and they learn quickly if a product does not produce results.  Retail stores also certify, at least to some extent, what they sell.  In addition there are government safeguards.  These are particularly important in cases in which the consumer cannot easily assess a product’s attributes.  Many products are subject to safety requirements that are a matter of law.  For example, building codes protect homeowners from shoddy workmanship hidden behind the walls.” – George A. Akerlof, and Robert J. Shiller, Chapter Three: Corruption and Bad Faith, Page 57

“The human mind is built to think in terms of narratives, of sequences of events with an internal logic and dynamic that appear as a unified whole.  In turn, much of human motivation comes from living through a story of our lives, a story that we tell ourselves and that creates a framework for motivation.” – George A. Akerlof, and Robert J. Shiller, Chapter Five: Stories, Page 82

Review

Is This An Overview?

Animal spirits are thoughts and feelings of animate people.  The psychological causes of economic activity.  Animal spirits are the noneconomic motives of decision making.  Decisions chosen by more than just rational actors wanting mutual economic benefits.  Economists tended to dismiss individual variations in the aggregate, but it is the variations produced by animal spirits that cause economic fluctuates.  There are consequences to animal spirits, which leads to a role for government, to prevent the consequences from escalating. 

The elements of animal spirits include confidence, fairness, corruption, money illusion, and stories.  People make decisions based on the confidence they have in an option, rather than considering all possible outcomes of all options.  Confidence in economic activity leads people to participate more, while a dip in confidence can prevent participation that escalates into an economic crisis.  People care for fairness, and are willing to punish those who they deem are acting selfishly.  Purchasing products and services risks corruption, as the claims about what was purchased can be misleading.  Consumer protection is needed for purchases whose quality is difficult to verify, while consumers tend to know the effectiveness of frequently repeated purchases.  People tend to think that the value of money is static, which is the money illusion, for in practice money purchases different amounts of the same product over time.  Stories build the narrative of events, which defines and motivates human behavior. 

 

Caveats?

The authors bring back the psychological aspects of Keynesian economics, with John Maynard Keynes being the originator of the term, animal spirits.  While they propagate an underrepresented idea of Keynes, to rectify the misunderstanding, they also propagate misunderstanding about Adam Smith’s ideas.  Smith’s work contained many noneconomic motivations for behavior.  The authors recognize how Keynes’s views were stripped of their psychological values, but do not recognize that the same was done to Smith.   


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What are animal spirits?
•What are the elements of animal spirits? 
•What is the role of the government? 
•How do animal spirits explain economic activity?
•How do animal spirits explain economic crisis?
•What is confidence?
•Do people care about fairness?
•How does corruption effect economics?
•What is the money illusion?
•Why do people tell stories?
•What is Keynesian economics?
•What is the Invisible Hand? 

Book Details
Publisher:               Princeton University Press
Edition ISBN:         9781400834723
Pages to read:          204
Publication:             2010
1st Edition:              2009
Format:                    eBook 

Ratings out of 5:
Readability    4
Content          2
Overall          2






Sunday, February 26, 2023

Review of The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power by Shoshana Zuboff

This book review was written by Eugene Kernes   

Book can be found in: 
Book Club Event = Book List (04/15/2023)

Watch Short Review

Excerpts

“Eventually, companies began to explain these violations as the necessary quid pro quo for “free” internet services.  Privacy, they said, was the price one must pay for the abundant rewards of information, connection, and other digital goods when, where, and how you want them.  These explanations distracted us from the sea change that would rewrite the rules of capitalism and the digital world.” – Shoshana Zuboff, Chapter 2: August 9, 2011: Setting the Stage for Surveillance Capitalism, Page 62

“Surveillance capitalism lays claim to these decision rights.  The typical complaint is that privacy is eroded, but that is misleading.  In the larger societal pattern, privacy is not eroded but redistributed, as decision rights over privacy are claimed for surveillance capital.  Instead of people having the rights to decide how and what they will disclose, these rights are concentrated within the domain of surveillance capitalism.  Google discovered this necessary element of the new logic of accumulation: it must assert the rights to take the information upon which its success depends.” – Shoshana Zuboff, Chapter 3: The Discovery of Behavioral Surplus, Page 101

“The theory and practice of dispossession were developed and refined as the company learned how to counter and transform public resistance as an essential condition for the protection and expansion of its behavioral surplus franchise.” – Shoshana Zuboff, Chapter 5: The Elaborate Of Surveillance Capitalism: Kidnap, Corner, Compete, Page 154


Review

Overview:

Within surveillance capitalism, digital users provide their experiences as data to be used to modify their behavior.  Data used by digital firms, to change user behavior for financial reward.  Data used to be used to enhance user experience, but has become the source of profit.  Not just profit, but also political power.  As the data can be used to find people that need persuading.  Power is held with those who hold the data.  The way the data is gathered and used threatens what it means to be human, democracy, and people’s sovereignty.  

Data is sold to other businesses, and rendered into behavioral predictions.  The way they get user data, is through covert means.  Spying on everyday lives without consent.  Gathering and modifying personal data.  Claimed to be anonymous, but can be used to identify the person.  Digital firms claim that privacy is the cost of using the seemingly free products.  Privacy violations that are enabled through legal terms of agreement.  Without a way to opt out of the privacy violations, especially because society has become dependent on using digital means to communicate and engage with others.  Privacy for use of products is not a legitimate choice anyone should make.  Especially because the privacy violations are not actually needed to run the applications. 

 

Dependency On The Digital Realm:

Digital interactions have become ubiquitous and familiar, but without much reflection on what these interactions mean.  The digital realm created a networked world that enabled capabilities and prospects, but came with negative psychological consequences.  Life has become dependent on the services that the internet provides, but to use the internet requires destruction of various human values.  Cognitive dissonance occurs with the use of the digital realm, for it provides a lot of value, but at a very large personal and social cost.  An illegitimate choice that has become normalized.

Applications have purposely found ways to become addictive.  As people engage with them in higher frequencies, and for longer durations.  Becoming a compulsion.  Meant for relief, but generates anxiety.  Technology has accelerated various socialization developments, become a necessity for social participation, and are used for the sake of connection.  Social pressure generates a tendency to over-share. 

 

Data, Security, And A Choice:

Earlier digital applications acknowledged the data the was being produced, with the data usage being in control of the user.  Data initially was used for the user.  Emphasizing the sovereignty of the individual, and places of sanctuary within private domains.  Data that did not cost the customers anything, while the data enabled better experiences of products and the expansion of available products.

Data has become a tool of oppression.  Individuals no longer have privacy or security with their personal information.  There is a lack of accountability for data security.  Data that is being used and sold for predictive analysis.  Refusal to adhere to individual data use, means risking service and product functionality.  Risking the safety of the individual.

The products and services provided by surveillance capitalism do not have a value exchange.  Their producer-consumer reciprocities are not constructive.  Those who use free products are not customers, for there is no economic exchange, nor are the users working for the firm.  Unlike workers who are paid for their efforts, users of free digital products are not paid for their efforts.  Users are not customers, nor the product, they are raw material used to create surplus.  The products and services are created to tempt users, who then become part of the program to extractive user personal experiences for other peoples wants.  The products made are meant to predict behavior.  People are the source of raw-material supply of the data used to make the predictions.

Privacy violations have become explained as necessary for the free internet services.  Privacy is the price for access to information and other products.  Explanations that distract from the even further violations within the digital realm.  A dispossession developed and refined to better able counter and transform public resistance into protection and expansion of the behavioral surplus operations.  The way digital services change behavior is by the cycle of incursion, habituation, adaptation, and redirection. 

Privacy is redistributed rather than eroded.  Rights over privacy are now concentrated with digital providers.  These rights are what enable surveillance capitalism’s success.  Using language to hide how they are using the rights over privacy.  This means the loss of individual’s sovereignty, for they do not have control over their own data. 

Whether or not an individual chooses to engage with digital application, digital firms will engage with them.  People will go to other people’s private homes, to engage with the digital application. 

 

Surveillance Capitalism:

Surveillance capitalism claims the right to use human experience as a free raw material, for the purpose of behavioral data and modification.  Outcomes of the data use are proprietary behavioral surplus, used to predict what the individual will do. 

The competitive process with surveillance capitalism pressures the firms to continuously obtain more data, from more sources.  Then use that data to modify behavior towards profitable outcomes.  A digital framework that knows and shapes behavior at scale.  An attempt to automate individuals, and society.  What the digital firms want, is to know the individual better than they know themselves.

Surveillance capitalism does not come about due to technological inevitabilities, but because of capitalistic logic.  The firms make surveillance appear inevitable, when it is actually just a means for commercial ends that favors the firms.  

Surveillance capitalists exploitation of the data they gathered, is explained in terms of emancipation to sway the generated anxieties.  But the processes they use to obtain the data, is hidden.  They keep power through ignorance.  Surveillance capitalism’s power comes through information asymmetry.  They know everything about the individual, but their operations are not made know to others.  They have gathered information from each individual, to use not for the individual, but for someone else. 

Digital firms found ways to legitimize and legalize their incursion into user experiences.  They legitimate their claims with obscure and incomprehensible terms-of-service agreements.  Even reading the abusive contract would require far longer than people actually read the contract.  Without accepting terms of service, would mean loss of updates for functionality and security.  Accepting some apps, gives them permission to collect and modify sensitive information.  Such as calling private numbers, and accessing the camera for identification purpose. Calls are recorded, and given to third-party firms to review how the voice renders into text.  To improve the voice system algorithms.  The recordings are claimed to be anonymous, but people are sharing very sensitive information, that can be used to identify them.  Apps collude with other apps covertly.  Activating an app, triggers a variety of other tracking apps.

Application creates choice architecture to elicit specific behavior.  To experiment on behavior modification for profit, and without human awareness.  Academic and government experiments need to comply with set rules to prevent abuses.  Which includes review boards.  While private digital firms go beyond what is acceptable under the rules, and are more likely to have conflicts of interest.  Digital firms behavior goes beyond established law and social norms.

 

Legal Status:

Google has a patent for targeted advertising.  That they have the rights over users’ personal information.  Rights that were held by users in the original social contract.  The patent made Google an active agent in data gathering.  Google’s digital targeted advertising led to financial success, but was also transformed into an automated auction.

The expropriation of experience depends on the laws making sure it is legal.  Changing the laws of surveillance, would make the surveillance capitalism model unsustainable.  Surveillance firms fight hard prevents laws that threaten their access to free behavioral surplus.

Content distributors and publisher are under different legal systems.  While publishers are liable for defamation posts, distributors are not.  Applications that do not review content posted, tend to be seen as a distributor.  Companies that did set standards for the content and removed posts that violated the standards, were deemed to take responsibility for the content and therefore considered a publisher.  This created a no-win situation.  The more a company would protect the users from malicious content, the more responsibility for the content the company would have.  Either benefiting free speech or scoundrels.  Section 230 was meant to resolve that contradiction, by allowing some control over content, without the risk of legal repercussions.  This contradiction does not much apply to surveillance capitalism.  The content providers data is now being used to render into behavioral data that leads to product sales.  Section 230’s protection of intermediaries now protects the surveillance operations from examination.

 

Technology Leaders, And Politicians:

Politicians have chosen to attach themselves to internet providers leaders to appear as willing to make a change.  But that proximity is a threat to every other internet provider.  Google’s leadership’s contact with the presidency, threatened Google’s competitors.  Providing technical support and taking part in the electoral cycle.  With the help of the digital realm, the campaigns knew everyone who they needed to persuade, and along with their personal and private social data. 

Tech industry, specifically Google, is a major contributor to political lobbying efforts.  They use their efforts to prevent legislation that would impede their extraction of behavioral surplus. 

Surveillance capitalism can be used by governments as well.  For political purposes, rather than market ones.  A forfeiture of freedom, for knowledge that is used by the state.  

A technology of behavior has the potential to reject the idea of freedom.  Technology that can harmonize human behavior.  Giving up freedom for guaranteed outcomes.  Freedom requires the individual’s to choose how to develop themselves, not behavioral modification programs.

 

Caveats?

The book can be difficult to read, especially because of the ideological origins of the ideas.  Simplifying and misdirecting some of the ideology unto wrong targets.  The author uses language in the same way the author claims the digital firms use language to persuade people to give up their privacy rights. 

The focus of the book is about the wrongs of behavioral modification.  But behavioral modification is not always against the individual.  As the author makes the case, what makes behavioral modification acceptable is a legitimate choice made by the user.  While the way behavioral modification occurs is through covert means.  What is limited in this book, are practical ways to identify the covert means that firms use.  Practical ways to identify the inappropriate behavioral modification.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What is surveillance capitalism?  
•How has data use changed?
•How is data used by digital firms?
•How is data used by politics? 
•Who has rights of data?
•Who has rights over privacy? 
•Why are there privacy violations? 
•How are free products paid for?
•Why do people use digital products?
•What patent enables the use of personal information for behavioral modification? 
•What is the Aware Home?  How did Aware Home initially consider their data?  How did their data usage change? 
•How do digital firms make their privacy violations legal?
•What is the different between content distributors and publishers?  
•How is surveillance capitalism used for politics?
•What are the common rules that academic and government experiments required to comply with? 
•How did Pokémon Go influence behavior? 
•Do you have anything to hide? 
•What is instrumentarian power?  How is it different from totalitarianism?  
•What are declarations?
•What does it mean to render data?

Book Details
Publisher:             PublicAffairs [Hachette Book Group]
Edition ISBN:      9781610395700
Pages to read:       546
Publication:          2019
1st Edition:           2018
Format:                 eBook

Ratings out of 5:
Readability    4
Content          4
Overall          4






Monday, July 4, 2022

Review of Never Split the Difference: Negotiating As If Your Life Depended On It by Chris Voss

This review was written by Eugene Kernes 

Book can be found in:
Genre = Economics, Behavioral
Book Club Event = Book List (07/23/2022)
Intriguing Connections = 1) Why Conflict Occurs And How To Resolve Them?
Watch Short Review

Excerpts

“The first step to achieving a mastery of daily negotiation is to get over your aversion to negotiating.  You don’t need to like it; you just need to understand that’s how the world works.  Negotiating does not mean browbeating or grinding someone down.  It simply means playing the emotional game that human society is set up for.  In this world, you get what you ask for; you just have to ask correctly.  So claim your prerogative to ask for what you think is right.” – Chris Voss, Chapter 1: The New Rules, Page 21


“In negotiation, each new psychological insight or additional piece of information revealed heralds a step forward and allows one to discard one hypothesis in favor of another.  You should engage the process with a mindset of discovery.  Your goal at the outset is to extract and observe as much information as possible.  Which, by the way, is one of the reasons that really smart people often have trouble being negotiators – they’re so smart they think they don’t have anything to discover.” – Chris Voss, Chapter 2: Be a Mirror, Page 26


“In every negotiation, in every agreement, the result comes from someone else’s decision.  And sadly, if we believe that we can control or manage other’ decisions with compromise and logic, we’re leaving millions on the table.  But while we can’t control others’ decisions, we can influence them by inhibiting their world and seeing and hearing exactly what they want.” – Chris Voss, Chapter 4: Beware “Yes” – Master “No”, Page 74


Review
Overview:
This book provides tools and techniques of negotiation from the experience of FBI negotiations.  Which used to focus on brute force and logic, but changed to focus on the emotional aspects of the negotiation.  Changed because of the actual experiences within tense negotiations, crisis negotiations.  Discovering what worked, and rectifying what did not work with an iterative process.  The developed negotiation techniques apply to more than just the FBI, as life is full of negotiations.  

Many negotiation techniques are provided, but they would be useless without listening.  Listening is a very active activity, not a passive activity.  Listening is such a difficult task, that rather than use a negotiator, the FBI uses a team of negotiators.  Each has their own biases and distractions.  Listening is a skill that demonstrates that the counterpart is being understood and accepted.  The focus is on the counterpart, which facilitates discovery of more information.  Information with which an advantage can be gained.  There are different ways to get the information, and use the information.

Within interactions between those who want sometimes from each other, negotiation is a prominent tool.  A tool used to gather information, and influence behavior.  Societies have set up negotiation as the cultural way of getting what someone wants.  It is by playing the emotional game that someone obtains social advantages.  There is no need to like negotiation, but there is a need to get used to negotiation. 
 
Negotiators are decision architects using verbal and nonverbal elements to gain consent and execution.  Have to analyze the entire negotiation space, by making sure that all counterparts are known and their views are considered.  Negotiation works best with a curiosity mindset.  Seeking to discover psychological insights and more information.  Searching for the pieces of knowledge outside normal expectations.  Those discoveries reveal different ways to approach the negotiation, and provide alternative ways that can be better.  The negotiator needs to continuously adjust perception, rather than try to fit reality to their own biases and forgone conclusions.  Needs to recognize flawed versions of the situation, and then seek to rectify the understanding.  

Changing Negotiation Styles:
Before 1971, FBI negotiations were about brute force.  Talking until a way to physically incapacitate the wrong doers became possible.  Pretending to negotiate, until force became possible.  But after a series of very public mistakes, the FBI was forced to change.  Needing to actually negotiate, rather than violence as the modus operandi.  

The negotiation style was based on problem-solving.  A logic approach to the handling counterparties.  The FBI used the approach which had four aspects.  1) Separate emotions from the problem.  2) Find out the underlying reason for the claimed wants.  3) Cooperate for win-win options.  4) Evaluate options using mutually agreed-upon standards.

The problem with the logical approach, was that the situations the FBI was in, did not present themselves in a way that would make the approach possible.  Rather than logic being central within the bargaining interactions, the situations were dynamic, uncertain, emotional, and without clear demands.  This caused a change in the approach, from pure logical sequence of events, to an emotional understanding.  Creating emotional negotiating skills.  

Emotions became central to effective negotiation, rather than something to overcome.  From there, psychological tactics and strategies were sought to create an emotional understanding between the negotiator and the counterpart.  To not only calm erratic emotions, but to build trust and verbalize needs.  A set of skill sets considered tactical empathy.  

Negotiating Strategies and Tactics:
Decisions are influenced by emotions.  Emotions override logic.  Tradition held that negotiators separate the emotion from the problem, because emotions are an obstacle to the outcome.  The problem is that emotions are the problem, especially under tense situations.  Communication becomes difficult under emotions.  Figuring out how to calm emotions, and keep oneself calm, is needed for negotiation.  Controlling one’s own emotions is a prerequisite for influencing counterpart’s emotions. 

Tactical empathy uses listening as a martial art.  Combining emotional intelligence and influence skills to understand another person.  It is a way to think from their perspective, from their point of view.  To assess their state of mind, and react accordingly.  What is needed is an understanding of the counterpart’s feelings and mindset, but also to hear the meaning behind the feelings.  Giving attention to emotional obstacles, means finding alternative pathways and increases influence.  To obtain that information, require the negotiator to be silent, and wait for a response.  Silence is a skill and part of listening.  

Empathy is not about agreeing with the counterpart, it is about understanding them.  Trying to understand the counterpart’s situation, and the reasons for their claims and actions.  Knowing their reasons, provides access to what can change their behavior.  Everyone has biases.  Understanding the unspoken needs and thoughts provide information that can be used to leverage to change counterpart’s views.

Labelling an emotion gives it validity.  Giving validity signifies identification with what and how the person feels.  Labelling is difficult and can be emotional intensive.  It is not about assuming the feelings are actually true, but a way to find how the individual feels. 

Within a negotiation, the parties try to build trust with one another.  What reduces trust is when people feel they are not being heard.  Which happens when the negotiation is proceeding to fast.  Being in a hurry when negotiating risks the built trust.

People mirror each other, imitate each other, for comfort.  People sync when they mirror each other, as a way of bonding.  Mirroring can be done through a variety of human behaviors and ways of speaking.  Mirroring in a negotiating can mean something as simple as repeating what was said, even something said at the end.  This triggers mirroring in the counterpart, as the counterpart will elaborate on what was said.  Elaboration means that the counterpart is sustaining the process of connecting.

Active resistance leads to showdown.  Unbelief is active resistance.  Suspending their unbelief can be done by asking for help.  Which gives the counterpart the illusion of control.  Their control, contains them.  A way to provide the illusion of control is to ask open ended questions, calibrated questions.  Those without a fixed response.  Open ended questions give more time for the negotiator.  Questions that can be used to inform, rather than cause conflict by telling.

Need to use the perspective of the counterpart, rather than one’s own.  Treat counterparts the way they want to be treated.   Use the counterpart’s worldview to an advantage.  Embed wanted claims within their worldview.  Cannot control counterpart’s decisions, but can influence them.  Positively affirming the counterparts’ views.  People who have difference information appear to be wrong, or worse, in discussion with those who hold different information.  Supplying information when needed and discovering the information asymmetries are needed for appropriate negotiations.  

Getting to a “yes” in a negotiation might be beneficial, but most of the time, the way the “yes” comes about, is through a question in which the “yes” is meaningless.  “Yes” itself does not provide much value.  Alternatively, “no” is great for negotiations.  “No” informs what is not wanted.  Used to maintain control.  “No” provides context within which to readjust and reconsider.  Creating a context in which ‘yes’ is meaningful.  Allowing for “no” as an answer, provides for a collaborative environment.  

Win-win approaches do not always work.  Especially when negotiating with someone who has a win-lose approach.  Compromise can be ineffective and disastrous.  Compromising is easy, which is why it is usually done.  Rather, creating solutions can be better, but carry risks that most are not willing to take.

Caveats?
There are contradictions within some of the claims, and that culture has a role in defining how some techniques can be used.  

The title’s advice to never split the difference, can be seen as an extreme.  But it comes from considering the consequences of various compromises.  Thinking of the compromises that had negative effects, while not considering the compromises that improved the situation.  Within this book, compromises are actually used within negotiating, but are made to appear as if they are not compromises in their outcomes.  

Power dynamic is undisclosed undercurrent.  Even when the FBI was not negotiating properly, they still had a lot of power to get what they wanted as the outcome.  Better negotiating skills facilitated better outcomes, but even those skills were backed by power.  Negotiating elsewhere, still requires understanding of the distribution of power.  The book provides some references to powerless situations, in which power dynamics shift and the negotiators took advantage of the change in power dynamic.  

The book provides a lot of practice and techniques to manipulate others, and can prepare negotiators not to be manipulated in the same manner.  But if everyone reads the book, the advantage disappears.  Much like how the author practiced, got better, and gained an understanding to negotiation.  Others can do the same.  

Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?
•What are some limitations of the book?
•Can FBI negotiation techniques be used elsewhere?
•What is negotiation used for?
•How did FBI negotiations change?
•What is listening used for?
•How to listen?
•What is the focus on the negotiation?
•How should negotiators approach negotiations?
•What is tactical empathy?
•What are some negotiation tactics to get to understand the counterpart? 
•How to calm the emotions of the counterpart?
•How is fairness used?
•What happens to those who have a reputation for always getting a lot from counterparts?
•What does it mean to be nice?
•What do deadlines do to negotiations?
•How can numbers be used influence negotiations? 

Book Details
Publisher:         Harper Business [HarperCollinsPublishers]
Edition ISBN:  9780062407818
Pages to read:   206
Publication:     2016
1st Edition:      2016
Format:            eBook

Ratings out of 5:
Readability    5
Content          5
Overall           5


Friday, March 11, 2022

Review of Range: Why Generalists Triumph in a Specialized World by David Epstein

This review was written by Eugene Kernes

Book can be found in:
Genre = Economics, Behavioral
Book Club Event = Book List

Watch Short Review

Elaborate Review

Overview:

To have high performance in a field, there is a lot of promotion for early specialization.  That the successes of early specialization within fields such as chess and golf, can be applied to other areas.  But there is an assumption within these successes, that the learning environment is kind.  Kind learning environments are those in which patterns repeat as the rules stay the same, and feedback is accurate and rapid.  While in wicked domains, rules are unclear or incomplete, a lack of repetitive patterns, and feedback is delayed or (and) inaccurate.  When rules and answers are known and are stable, then hyperspecializing can be beneficial.  But that is a poor model for most things that humans want to engage in.  Those who have late start to specialization, learn a multitude of skills and abilities which they can later rely on.  There are many people who had late starts, which did not hold them back.  Late starts were integral to their success.  Creativity can be sparked by having a range of knowledge.  In many creative fields, solutions or ideas come from different fields.  They come from an outsider, as the insider’s views were too constrained.  Specialized knowledge is narrow and not flexible, which means that it cannot apply well to other domains.  Experts are well prepared for what they have already experienced, but fail at everything else.   

High performers in kind learning environments create a false impression that human skill is often done in kind learning environments.  Early practice and specialization does not even help in most sports.  Elites of sports tend to sample different sports before devoting a lot of time to a single sport.  In that sampling period, they obtain various physical proficiencies which they can use in their specialized sport.  When sampling, they also find the sport that actually interests them.  They find out about their abilities and proclivities.  It is by interacting with the world, by living, that people find about who they are.

Answers are easy when there are definite solutions and the questions are known.  The problem is in fields in which they are still trying to ask the right questions.  Uncertain environments and wicked problems need breath of experience.  Specialization is useful for kind problems.  The problem is applying specialized skills in a kind environment, to wicked environments.  That can lead to disaster.  People tend to use the same tools that they have habituated too, even when the situations are completely different.  It is difficult to drop familiar tools.  Becoming an overlearned behavior.

Experts traded flexibility for narrow skills.  Non experts have an easier time adapting to new rules than experts.  This phenomenon is called cognitive entrenchment.  To become more flexible, people need to vary challenges within their domains.  Having some attachments outside to the specialized field.

Abstract thinking allows individuals to rely less on personal experience as a reference point.  Conceptual classifications facilitate connections to different information, making knowledge accessible and flexible.  Much of work in the digital era requires knowledge transfer, as knowledge needs to be applied to different domains and new situations.  Need to develop habits of mind to consider what other disciplines have to offer.  Detailed knowledge of a question can be less important than the way to think about the question.

Too much specialization within intellectual fields can cause the individuals to become too narrow minded, that it causes them to become worse with experience, while more confident.  People within the field tend to pick and choose data that supports their view, making their knowledge work against them.  Extreme views can be created from considering more internal details.

Usually, it is thought that hyper specialization drives innovation, but what specialization does is create opportunities for outsiders.  Elevating narrowness is an ideal can be very counterproductive.  Specialization can become so constrained, that only an outside can see the solution.  Creative problem solving can come from outsiders who use different approaches.  Merging available disparate information is undiscovered public knowledge. 


Learning:

Effective Learning occurs during a slow accumulation of lasting knowledge.  Immediate progress is not an indicator of future potential.  Struggling to understand something is frustrating, but leads to durable understanding.  Quick and easy is a problem in learning, because it makes the lesson temporary.  Desirable difficulties make learning challenging, slower, and frustrating for immediate situation, but have better outcomes.  Excessive hint-giving benefits immediate performance, but hurts progress in understanding.

Performing poorly on tests can provide a lot of feedback that can be used to improve the knowledge base.  Tolerating mistakes creates learning opportunities, as reconsidered responses tend to be remembered better.


Caveats?

The book is easy to read and has a complex view of specialization.  The problem is defining how much range in skills and knowledge is needed, and what it means to be a late started.  How late an individual should specialize seems like an indeterminant time frame than the easy framework of early specialization.  Much like there is a survivorship bias in success for specialists, there is a survivorship bias for late starters and general knowledge.

The book is primarily composed of examples.  As the book is about range, the examples are diverse.  The problem is how to put their meaning together, to make them general knowledge rather than just specific within a dominant.  


Questions to Consider while Reading the Book
•What is the raison d’etre of the book?  For what purpose did the author write the book?
•What are some limitations of the book?
•Why promote early specialization?
•What do late starts do?
•What does it mean to have range of knowledge or skills?
•What are kind learning environments?
•What are wicked domains? 
•Who wields the appropriate solutions?
•Why does specialization create opportunities for outsiders? 
•What are experts good at?
•What is the purpose of a sampling period?
•How does having more insider’s information about a problem impact views?
•How do experts and non-expert’s adept to new situations? 
•What is the impact of abstract thinking? 
•What are some learning techniques? 
•What is the Moravec’s paradox? (Role of machines.)
•What are tests for? 
•What is the end of history illusion? 
•What is the difference between hedge hogs and foxes? (Expert mind-sets.) 
•How does becoming more urban (modernizing) change the way people think? 


Book Details
Edition ISBN:  9780735214491
Pages to read:   270
Publication:     2020
1st Edition:      2019
Format:           eBook

Ratings out of 5:
Readability    5
Content          5
Overall           5


Friday, February 25, 2022

Review of Scarcity: Why Having Too Little Means So Much by Sendhil Mullainathan, Eldar Shafir

This review was written by Eugene Kernes

Book can be found in:
Genre = Economics, Behavioral
Book Club Event = Book List
Intriguing Connections = 1) Why Do People Think Differently?, 2) War for Your Attention,
Watch Short Review

Elaborate Review

Overview:

Scarcity can be objective, but it is a very subjective feeling.  It is the feeling of having less than you think you need.  Too little time, money, patients, charm, or just about anything which one feels there is an inadequate supply of.  Scarcity changes the way people think.  Scarcity forces itself on the mind.  Scarcity does provide a very narrow benefit, that it makes the individual better at managing the pressing needs.  The problem is that it costs much more, as everything else becomes neglected.  A little bit more effective at the scarce resource, but much less effective at everything else.  Scarcity taxes the mental bandwidth, making it much harder to think about anything else.  Under scarcity, any errors become magnified while also providing more opportunities to err.  With some slack, failures become less costly.  But too much slack leads to little need to be efficient.  What matters is how scarcity is managed.    

Remarkable effort can be applied when feeling constrained.  As focus goes solely to the object of the constrained.  Creative bursts that are built on previous hard work and experience, can occur under time pressure which requires condensation of those prior efforts for immediate output.  The positive outcome of scarcity capturing attention is called the focus divided.  Scarcity is extremely difficult to fake.  

Scarcity can create positive outcomes by driving focus on what matters most.  The problem is that scarcity causes people to tunnel, as it causes people to neglect other things that might be even more important.  Scarcity inhibits other goals and considerations.  Scarcity captures the mind automatically.  Under the influence of scarcity, there is no consideration for trade-offs, weighing the costs and benefits.  Rather than consider the many benefits that come later, the mind tunnels to limit the immediate costs.  Future benefits are not considered because they are outside the tunnel.  Scarcity does force trade-off thinking that are attached to immediate needs.

Bandwidth is a collective term for various psychological functions such as computational capacity, ability to pay attention, make appropriate decisions, stick to plans, and resist temptation.  What scarcity does is tax the bandwidth, inhibiting many fundamental capacities.  Scarcity generates internal disruptions, preventing clear thinking.  Unmet needs capture attention and become thought of frequently.  Much like being distracted by external stimuli, the mind can get captured by distracting thoughts.  Situations in which there is major distractions, there can be attentional blink.  Seeing of hearing something, but not registering or considering it because the mind is on other thoughts.  Scarcity reduces the available bandwidth.  

Under scarcity, people borrow.  Making it more difficult for future circumstance.  Scarcity is an auto-catalyst, as it creates more scarcity.  Tunneling on current needs, prevents thinking about future needs.  Caught in a scarcity trap means being a step behind and juggling.  Not only having to deal with the situation right before it becomes a major problem, but also having various things to deal with.  To get away from the scarcity trap requires constant and everlasting vigilance.

When there is slack, usefulness becomes less apparent.  Slack has hidden efficiency, as it makes errors and unexpected events less costly.  Slack gives maneuverability.  Scarcity raises the costs of error, while also giving more opportunities to fail.  Harder to do things right when there are so many constraints.  Slack affords the luxury of not needing to think much about the problem.  

Different forms of scarcity share common ingredients, but that does not mean their outcomes are similar.  The ingredients of tunneling, borrowing, lack of slack, and bandwidth tax impact the mind differently depending on the context.  Some forms of scarcity are discretionary, such as choosing to do less under time scarcity.  Discretional scarcity provides a safety valve to manage scarcity’s stress and damage.  But with poverty, changing wants is not a viable option.

The poor are not less capable, their minds are captured by scarcity.  It is not just income that the poor have a problem with.  Poverty is a host of problems.  Dealing even with just one, even just increasing income, will not help alleviate poverty.  For there are a lot of scarcity things on the minds of the poor, and they will have trouble with the others.  The poor also lack slack in their situation, causing any successes to be wiped away by even a single setback.  The irony, is that the poor are better at making ends meet for present circumstance.  

The authors used many experiments.  Some had artificial aspects such as triggered thoughts about hypothetical questions.  But some of the experiments were from real life.  The experiments showed the complexity of the ideas behind scarcity.


Caveats?

An easy to read book, that shows the complexity of the idea, and comes with many ideas to help manage scarcity.  What the ideas lack are practical habits and tools to make them happen, which need to be identified on an individual basis and adjusted for need. 

The authors do not hide the complexity of how scarcity captures the mind, but the problem is there is very little on how to put everything together.  Along the complexity comes some inconsistencies.


Questions to Consider while Reading the Book
•What is the raison d’etre of the book?  For what purpose did the author write the book?
•What are some limitations of the book?
•What is scarcity?
•How does scarcity change how people think?
•What are the benefits of scarcity?
•What are the costs of scarcity?
•What is the mental bandwidth?
•What happens to errors under scarcity?
•What is slack?  How does slack impact decisions?
•What is tunneling?
•Why do people borrow?
•What is the problem with poverty?  
•How were the experiments set up? 
•What is fault tolerance?
•What expectations of the individual do training programs have?

Book Details
Edition ISBN:  9780805092646
Pages to read:   234
Publication:     2013
1st Edition:      2013
Format:           Hardcover

Ratings out of 5:
Readability    5
Content          5
Overall           5