Dan Ariely

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Dan Ariely
Dan Ariely January 2019.jpg
Dan Ariely in 2019 at Tel Aviv University's Alumni Organization
Born (1967-04-29) April 29, 1967 (age 55)
New York City, New York, U.S.
Nationality Israeli, American
EducationCognitive Psychology (PhD)
Business Administration (PhD)
Alma mater Duke University
University of North Carolina at Chapel Hill
Tel Aviv University
Known forBehavioral Economics
Scientific career
Fields
Institutions Duke University
Massachusetts Institute of Technology
Doctoral advisor James Bettman
John G. Lynch Jr.
Website danariely.com

Dan Ariely (Hebrew : דן אריאלי; born April 29, 1967) is an Israeli-American professor and author. He serves as a James B. Duke Professor of psychology and behavioral economics at Duke University. Ariely is the founder of the research institution The Center for Advanced Hindsight, [1] as well as the co-founder of several companies implementing insights from behavioral science. [2] [3] [4] [5] [6] Ariely's TED talks have been viewed over 15 million times. [7] [8] [9] [10] Ariely is the author of the three New York Times best sellers Predictably Irrational , The Upside of Irrationality , and The Honest Truth about Dishonesty , [11] as well as the books Dollars and Sense, Irrationally Yours – a collection of his The Wall Street Journal advice column “Ask Ariely”; [12] and Payoff, a short TED book. [13] Ariely appeared in several documentary films, including The Inventor: Out for Blood in Silicon Valley and produced and participated in (Dis)Honesty: The Truth About Lies . [14]

Contents

In 2021, the blog Data Colada published evidence that the data used by Ariely in a 2012 PNAS paper was fraudulent. [15] [16] [17] Ariely's paper was retracted. [18] [19]

Early life and family

Dan Ariely was born in New York City while his father was studying for an MBA degree at Columbia University. The family emigrated to Israel when he was three. He grew up in Ramat Hasharon. [11] In his senior year of high school, he was active in Hanoar Haoved Vehalomed, an Israeli youth movement. While he was preparing a ktovet esh (fire inscription) for a traditional nighttime ceremony, the flammable materials he was mixing exploded, causing third-degree burns over 70 percent of his body. [11] In his writings, Ariely describes how that experience led to his research on "how to better deliver painful and unavoidable treatments to patients." [20] [21]

Dan married Sumedha (Sumi) Gupta Ariely in 1998. [22] They have two children and are now divorced.[ citation needed ]

Education and academic career

Ariely was a physics and mathematics major at Tel Aviv University but transferred to philosophy and psychology. However, in his last year he dropped philosophy and concentrated solely on psychology. In 1996 he earned a Ph.D. in cognitive psychology from the University of North Carolina at Chapel Hill, and completed a second PhD in Marketing at Duke University in 1998, at the urging of Nobel economic sciences laureate Daniel Kahneman. [11] [23]

Ariely taught at MIT between 1998 and 2008, where he was formerly the Alfred P. Sloan Professor of Behavioral Economics at MIT Sloan School of Management and at the MIT Media Lab.

In 2008, Ariely returned to Duke University as James B. Duke Professor of Psychology and Behavioral Economics. Ariely's laboratory at Duke University, the Center for Advanced Hindsight, pursues research in subjects like the psychology of money, decision making by physicians and patients, cheating, and social justice. [11]

Accusations of data fraud and academic misconduct

There have been accusations of academic dishonesty and data fraud in Ariely's career.

In 2010, Ariely told NPR in an interview that data from Delta Dental, an insurance provider, showed that dentists frequently (with a probability of "about 50 percent") misdiagnosed cavities when analyzing X-rays, and speculated that this might happen so that dentists could charge more money. [24] A Delta Dental spokesperson later stated that they do not collect data that could support such a conclusion. [25] [26]

In July 2021, the journal Psychological Science issued an Expression of Concern regarding a 2004 paper co-authored by Ariely, "prompted by some uncertainty regarding the values of statistical tests reported in the article and the analytic approach taken to the data". [27] According to the journal, Ariely was not able to locate the original data to resolve the ambiguities.

In August 2021, a widely-cited 2012 paper about honesty [18] co-authored by Ariely was reanalyzed by the blog Data Colada. The blog concluded that study data provided by a car-insurance company was likely manipulated. [15] [16] The paper was retracted. [16] Ariely denies accusations of fraud. [28] BuzzFeed News reported that Ariely gave "vague and conflicting answers about how he obtained the data" and that he "appeared to blame the insurance company for the fraudulent data" though he "did not have any emails from that time to review". [16]

Later in August 2021, the online news journal Hamakom reported that while Ariely was at MIT and ran an experiment regarding the value of placebos ("Commercial Features of Placebo and Therapeutic Efficacy"), he used electric shocks on volunteers without asking or receiving an Institutional review board approval for such an experiment. This was discovered after one of the participants complained, and an approval was granted only after the experiment was concluded. The ethics committee decided to forbid Ariely to run experiments for a year, after which he moved to Duke University. [29] Ariely confirmed that he was suspended and said it was a misunderstanding between him and the IRB. [30] [28]

Business activities

In 2010, Ariely co-founded BEworks, a management consulting firm dedicated to applying behavioral science to business and policy challenges. BEworks was acquired by kyu Collective in January 2017. [31] In 2012, he co-founded, with Yuval Shoham and Jacob Bank, Timeful, [4] a technology company aiming to help people manage their time. Timeful was acquired by Google in 2015. [32] In 2013, he co-founded, with Doron Marco and Ayelet Carasso, Genie, [5] a kitchen appliance designed to cook personalized healthy dishes in about a minute.

In 2015, Ariely was named chief behavioral economist for Qapital. Ariely, who has also invested in the company, [33] uses his access to the app's platform and database to assist him in independent research on consumer saving and spending behavior. In turn, Qapital can access Ariely's research to test technologies and ideas for use in the app. In 2016, Ariely was named Chief Behavioral Officer for Lemonade, an insurance company, to integrate aspects of behavioral economics into Lemonade's insurance model and help them align incentives between the insurer and insured. [34]

In 2017, he co-founded, with Nati Lavi, Shapa, a health monitoring and encouraging company. [6] In 2018, he co-founded the company Kayma, which uses behavioral economics and original research methods. The company works on projects for the Israeli government's Ministry of Finance. [35]

Books

Ariely is the author of the books Dollars and Sense: How We Misthink Money and How to Spend Smarter, Predictably Irrational: The Hidden Forces That Shape Our Decisions, [36] The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home and The Honest Truth About Dishonesty: How We Lie to Everyone – Especially Ourselves .

He explains the impetus for his first book:

I have a Ph.D. in cognitive psychology, and I have a Ph.D. in business administration. But what I do lies between psychology and economics. I ask questions that economists would ask, but instead of assuming straightaway that people behave rationally, I just observe how people behave. In "Predictably Irrational", I talk about how people think, mostly about financial decisions. The things that we buy. One chapter asks the question, "How do we decide how much something is worth?" Economic theory has a very simple assumption about this. But I ask the question, "How do we really do it?" [37]

When asked whether reading Predictably Irrational and understanding one's irrational behaviors could make a person's life worse (such as by defeating the benefits of a placebo), Ariely responded that there could be a short-term cost, but that there would also likely be long-term benefits, and that reading his book would not make a person worse off. [38] Asked to describe The Upside of Irrationality, Ariely says,

The first half is about motivation in the workplace. It asks questions like, "What is the real effect of bonuses? What happens when we give high bonuses?" It turns out it motivates people, but it doesn't always bring higher performance. It often actually brings lower performance. Because money can stress people...The second part of "The Upside of Irrationality" is about the personal life. It's about the question, how do we find happiness? And how do we adapt to good and bad things that happen to us? And it's a little bit about emotion. [37]

Michael S. Roth writes of The Honest Truth About Dishonesty, "Ariely raises the bar for everyone. In the increasingly crowded field of popular cognitive science and behavioral economics, he writes with an unusual combination of verve and sagacity. He asks us to remember our fallibility and irrationality, so that we might protect ourselves against our tendency to fool ourselves." [39]

In 2008 Ariely, along with his co-authors, Rebecca Waber, Ziv Carmon and Baba Shiv, was awarded an Ig Nobel Prize in medicine for their research demonstrating that "high-priced fake medicine is more effective than low-priced fake medicine." [40]

Works

Books

Articles

Audio and video appearances

See also

Related Research Articles

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Rationality is the quality or state of being rational – that is, being based on or agreeable to reason. Rationality implies the conformity of one's beliefs with one's reasons to believe, and of one's actions with one's reasons for action. "Rationality" has different specialized meanings in philosophy, economics, sociology, psychology, evolutionary biology, game theory and political science.

Bounded rationality is the idea that rationality is limited when individuals make decisions. In other words, humans' "preferences are determined by changes in outcomes relative to a certain reference level". Limitations include the difficulty of the problem requiring a decision, the cognitive capability of the mind, and the time available to make the decision. Decision-makers, in this view, act as satisficers, seeking a satisfactory solution, rather than an optimal solution. Therefore, humans do not undertake a full cost-benefit analysis to determine the optimal decision, but rather, choose an option that fulfils their adequacy criteria. An example of this being within organisations when they must adhere to the operating conditions of their company, this has the opportunity to result in bounded rationality as the organisation is not able to choose the optimal option.

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Amos Nathan Tversky was an Israeli cognitive and mathematical psychologist and a key figure in the discovery of systematic human cognitive bias and handling of risk.

Behavioral economics Academic discipline

Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory.

Appeal to emotion or argumentum ad passiones is an informal fallacy characterized by the manipulation of the recipient's emotions in order to win an argument, especially in the absence of factual evidence. This kind of appeal to emotion is a type of red herring and encompasses several logical fallacies, including appeal to consequences, appeal to fear, appeal to flattery, appeal to pity, appeal to ridicule, appeal to spite, and wishful thinking.

The peak–end rule is a psychological heuristic in which people judge an experience largely based on how they felt at its peak and at its end, rather than based on the total sum or average of every moment of the experience. The effect occurs regardless of whether the experience is pleasant or unpleasant. According to the heuristic, other information aside from that of the peak and end of the experience is not lost, but it is not used. This includes net pleasantness or unpleasantness and how long the experience lasted. The peak–end rule is thereby a specific form of the more general extension neglect and duration neglect.

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<i>Predictably Irrational</i> 2008 book by Dan Ariely

Predictably Irrational: The Hidden Forces That Shape Our Decisions is a 2008 book by Dan Ariely, in which he challenges readers' assumptions about making decisions based on rational thought. Ariely explains, "My goal, by the end of this book, is to help you fundamentally rethink what makes you and the people around you tick. I hope to lead you there by presenting a wide range of scientific experiments, findings, and anecdotes that are in many cases quite amusing. Once you see how systematic certain mistakes are—how we repeat them again and again—I think you will begin to learn how to avoid some of them". The book has been republished in a "revised & expanded edition".

Uri Gneezy

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Baba Shiv grew up in India and is an American marketing professor and an expert in the area of neuroeconomics. He is the Sanwa Bank, Limited, Professor of Marketing at Stanford Graduate School of Business, Stanford University. His work has been featured in The Tonight Show with Jay Leno, CNN, Fox Business, Financial Times, The New York Times and The Wall Street Journal. Shiv received his PhD from Duke University.

Ziv Carmon Israeli-born business academic

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<i>The Honest Truth about Dishonesty</i> 2012 book by Dan Ariely

The Honest Truth About Dishonesty: How We Lie to Everyone---Especially Ourselves is a 2012 book by the Duke University cognitive science professor Dan Ariely. It investigates why and when cheating occurs, debates its usefulness and questions how it can be discouraged.

The Upside of Irrationality: The Unexpected Benefits of Defying Logic is a book published in 2010 by behavioral economist Dan Ariely. This is Ariely's second published book, after he authored Predictably Irrational: The Hidden Forces That Shape Our Decisions.

Boris Maciejovsky is an Austrian behavioral scientist, and an Associate Professor of Management at the School of Business at the University of California, Riverside. He is also the founder and managing partner at Greenleaf Analytics LLC, a behavioral management consultancy. His research focuses on behavioral economics and organizational decision-making.

References

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  2. "Kayma".
  3. "About Us". Archived from the original on 2019-04-20. Retrieved 2017-02-14.
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  6. 1 2 "Shapa, the revolutionary display free scale".
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  8. "Dan Ariely: Are We In Control of Our Own Decisions?".
  9. "Dan Ariely: Beware Conflicts of Interest".
  10. "Dan Ariely: What Makes Us Feel Good About Our Work".
  11. 1 2 3 4 5 When Dan Ariely found the key to human nature
  12. "Irrationally Yours". 23 April 2020.
  13. "Payoff". 23 April 2020.
  14. "(Dis)Honesty: The Truth About Lies". IMDb . 22 May 2015.
  15. 1 2 "[98] Evidence of Fraud in an Influential Field Experiment About Dishonesty". Data Colada. 2021-08-17. Retrieved 2021-08-18.
  16. 1 2 3 4 Lee, Stephanie (20 August 2021). "A Big Study About Honesty Turns Out To Be Based On Fake Data". BuzzFeed News. Retrieved 23 August 2021.
  17. Gelman, Andrew (2021-08-20). "A scandal in Tedhemia: Noted study in psychology first fails to replicate (but is still promoted by NPR), then crumbles with striking evidence of data fraud « Statistical Modeling, Causal Inference, and Social Science" (Editorial). statmodeling.stat.columbia.edu. Retrieved 23 August 2021.
  18. 1 2 "A study on dishonesty was based on fraudulent data". The Economist. 2021-08-20. ISSN   0013-0613 . Retrieved 2021-08-23.
  19. "Fraudulent data raise questions about superstar honesty researcher". Science. Retrieved 2021-08-25.
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  21. Dahl, Melissa. "How a Terrible Accident Inspired Dan Ariely’s Career Path." New York Magazine 31 July 2015.
  22. "Interview with Daniel Ariely, PhD". Mentor Coach. Retrieved 2021-08-24.
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  25. "Letters: Dentists". NPR.org. Retrieved 2022-01-28.
  26. "Should You be Suspicious of Your Dentist or NPR's Source?".
  27. Bauer, Patricia J.; Ariely, Dan (2021-07-23). "Expression of Concern: Effort for Payment: A Tale of Two Markets". Psychological Science. 32 (8): 1338–1339. doi:10.1177/09567976211035782. ISSN   0956-7976. PMID   34296633. S2CID   236200023.
  28. 1 2 "Behavioral researcher says he 'undoubtedly made a mistake' in false data scandal". www.timesofisrael.com. Times of Israel.
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  30. A segment on Dan Ariely in News 12 (Hebrew)
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  38. "Predictably Irrational Is an Irresistible Look at Our Not-So-Rational Foibles" Derek Tokaz, The Commentator, Feb. 28, 2008 New York University School of Law
  39. "Book Review: Dan Ariely's the (Honest) Truth About Dishonesty". HuffPost . 2012-08-12.
  40. "Winners of the Ig® Nobel Prize". Improbable Research. August 2006. Retrieved 2013-05-15.
  41. Real Value , retrieved 2019-09-30