Asleep at the wheel: what makes us human is our irrationality
Jared Sperli stashed this in life
Time and time again we are affected by factors of which we are not even aware.
Time and time again we behave irrationally. It’s not just the way information is presented to us of which we need to be mindful. We need to be aware, too, of the impact of our physiological and psychological state on the choices we make.
If we’re anxious, we are more risk-averse. Stress makes us prone to tunnel vision, less likely to take in all the information we need. When we’re happy we take more risks, are more trusting, more generous. It’s why a country’s stock market tends to rise off the back of a national team’s win at football. (Not something England needed to worry about this year, sadly.)
If we’re tired, that messes with our decision-making. If you’ve ever pulled an all-nighter you will know the symptoms of sleep deprivation all too well: difficulty concentrating, brain like cotton wool, memory lapses. But did you know that if you go 24 hours without sleep or spend a week sleeping only four or five hours a night, it’s as if you’re making decisions drunk?
Are you the type who skips breakfast? If so you might want to rethink that. Fascinating research in Israel on why judges decided to grant prisoners parole showed that the main determinant wasn’t the applicant’s gender or ethnicity, nor even the type of crime, but whether the judge had recently eaten.
If you went before the judge just before they’d had their mid-morning snack . . . disaster. Zero per cent chance of getting parole. Immediately after that snack: 65 per cent. Just before lunch . . . disaster again. Only a 10 per cent chance of getting parole. Immediately after lunch: 65 per cent.
And if you’re feeling horny, well, you probably want to wait before you make that important call. When Canadian male undergraduates were given one of two images to look at – either a Victoria’s Secret model or a neutral object, a rock – and then asked to make a financial decision, the guys who’d been looking at the Victoria’s Secret model made significantly worse financial decisions than those who’d been looking at a rock.
my new excuse for bad money decisions
Anxious? Tired? Hungry? Or horny?