Barking up the wrong tree

Just the interesting stuff. 

Why do the elderly choose riskier investments?:

Older Americans forced to postpone retirement because of stock market losses often continue to make risky investments. These decisions may hurt not only the individuals who make them but the economy as a whole.

Yet little research has tried to understand how the aging brain processes these critical investment decisions. A new study by Camelia M. Kuhnen (Assistant Professor of Finance at the Kellogg School of Management) and colleagues Gregory R. Samanez-Larkin (doctoral student at Stanford University), Daniel J. Yoo (research assistant at Stanford University), and Brian Knutson (Associate Professor of Psychology at Stanford University) offers some clues. Their research, published in the The Journal of Neuroscience, finds that older adults tend to make mistakes when choosing riskier investments because of “noisy” value signals in their brains.

The study used brain-scanning equipment to compare the brains of younger adults to older adults as they played a fast-paced investment game. Examining the responses of older adults, Kuhnen and colleagues found a correlation between risky investments and reactions in the brain’s reward circuitry, specifically a region in the emotional brain called the nucleus accumbens.

“We found older adults made more mistakes,” Kuhnen says. “They seem unable to represent value accurately in the nucleus accumbens area.”

Psychological research from other groups has shown that older adults disproportionately anticipate gains over losses when choosing risky assets, but Kuhnen says her study was the first to identify the region in the brain where these age-related mistakes likely occur. This latest study may help explain why older adults seem susceptible to investment frauds. Scam artists often demand quick decisions, which tap into the emotional brain. Kuhnen says her research suggests that elderly investors will make better decisions when they have time to engage their rational brain and consider their choices.

“When you take a long time to think, it is not clear the emotional brain will play as important a role,” she says. The results also challenge the popular notion that older adults are inherently conservative investors, Kuhnen says.

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed.

If you're curious about how the brain makes these sort of value decisions, I recommend "How We Decide"  by Jonah Lehrer.

Related posts:

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

Should you kiss ass if you're not good at it?:

In this study, the authors investigated the effect of an individual's political skill on the relationships between 5 different impression management tactics (intimidation, exemplification, ingratiation, selfpromotion, and supplication) and supervisor evaluations of performance. To test these relationships, the authors used a matched sample of 173 supervisor-subordinate dyads who worked full time in a state agency. Findings showed that individuals who used high levels of any of the tactics and who were politically skilled achieved more desirable supervisor ratings than did those who used the tactics but were not politically skilled. Opposite results were found when impression management usage was low. That is, individuals who were not politically skilled created a more desirable image in their supervisors' eyes than did their politically skilled counterparts when they did not use these tactics. Practical and research implications for the findings as well as directions for future research are offered. (PsycINFO Database Record (c) 2007 APA, all rights reserved)
Source: The Impact of Political Skill on Impression Management Effectiveness. from Journal of Applied Psychology

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed.

An excellent book on persuasion I recommend is here.

Related posts:

Here are seven of the most powerful persuasion techniques.

Here is why companies should have unlimited vacation days.

Here is why your boss is incompetent.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

How much does a firm handshake matter during a job interview?:

The authors examined how an applicant's handshake influences hiring recommendations formed during the employment interview. A sample of 98 undergraduate students provided personality measures and participated in mock interviews during which the students received ratings of employment suitability. Five trained raters independently evaluated the quality of the handshake for each participant. Quality of handshake was related to interviewer hiring recommendations. Path analysis supported the handshake as mediating the effect of applicant extraversion on interviewer hiring recommendations, even after controlling for differences in candidate physical appearance and dress. Although women received lower ratings for the handshake, they did not on average receive lower assessments of employment suitability. Exploratory analysis suggested that the relationship between a firm handshake and interview ratings may be stronger for women than for men. (PsycINFO Database Record (c) 2008 APA, all rights reserved)
Source: Exploring the handshake in employment interviews. from Journal of Applied Psychology - Vol 94, Iss 6
--

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed.

A book I recommend for job interview prep is here.

Related posts:

Here's how many jobs you'll have in your life.

Here's the best time to set a meeting.

Here's how money changes what we think is fair.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

How important are the first five minutes of a negotiation?:

In this research the authors examined whether conversational dynamics occurring within the first 5 minutes of a negotiation can predict negotiated outcomes. In a simulated employment negotiation, microcoding conducted by a computer showed that activity level, conversational engagement, prosodic emphasis, and vocal mirroring predicted 30% of the variance in individual outcomes. The conversational dynamics associated with success among high-status parties were different from those associated with success among low-status parties. Results are interpreted in light of theory and research exploring the predictive power of "thin slices" of behavior (N. Ambady & R. Rosenthal, 1992). Implications include the development of new technology to diagnose and improve negotiation processes. (PsycINFO Database Record (c) 2007 APA, all rights reserved)
Source: Thin slices of negotiation: Predicting outcomes from conversational dynamics within the first 5 minutes. from Journal of Applied Psychology - Vol 94, Iss 6

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed.

Getting to Yes can teach you to be a good negotiator while still being a nice person. If you're less Jedi and more Sith, check out Jim Camp.

Related posts:

Here's how to most effectively use the good cop/bad cop technique,

A great method for getting a deal on a car is here.

Here's the optimal starting price for negotiations and auctions, and how to easily make more money on eBay.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

Why do pitchers hit batters in baseball?:

This study tested the possibility that hit-by-pitch events in Major League Baseball could be explained by theories of aggression. Consistent with the general aggression model, personal and situational characteristics interacted to predict these events. Pitchers were more likely to hit batters in situations that allowed them to restore justice and protect valued social identities. Higher order interactions revealed that the likelihood of being hit by a pitch in these situations depended on the background of the pitcher and the race of the batter. Consistent with the culture of honor theory, pitchers from the southern United States were more likely to hit batters in these situations, but primarily if the batter was White. (PsycINFO Database Record (c) 2007 APA, all rights reserved)
Source: "It was a thought pitch": Personal, situational, and target influences on hit-by-pitch events across time. from Journal of Applied Psychology - Vol 94, Iss 6
--

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed. Here are the site's most popular posts of all time.

If you're looking for some good books about sports check out Moneyball and Game of Shadows.

Related posts:

Is sport a religion?

Could a morbidly obese goalie shut-out an NHL team?

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

How many people are on drugs while at work?:

Across the board: 3.1% or 3.9 million workers -- but it's not evenly distributed. In some segments of the workforce it's 28%.

This U.S. national study explored the overall prevalence, frequency, and distribution of illicit drug use in the workforce and in the workplace during the preceding 12 months. Illicit drug use in the workforce involved an estimated 14.1% of employed adults (17.7 million workers). Illicit drug use in the workplace involved an estimated 3.1% of employed adults (3.9 million workers). Illicit drug use in the workforce and in the workplace is not distributed uniformly in the employed population. At-risk, though circumscribed, segments of the U.S. workforce were identified with prevalence rates up to 55.8% for any use of illicit drugs and up to 28.0% for illicit drug use in the workplace. The implications of these data for future theoretical research and for management policy and practice are discussed. (PsycINFO Database Record (c) 2006 APA, all rights reserved)

Source: Prevalence and Distribution of Illicit Drug Use in the Workforce and in the Workplace: Findings and Implications From a U.S. National Survey. from Journal of Applied Psychology -

If you enjoyed this post you should follow me on Twitter here. I tweet content there you won't find on the site. You can also subscribe to this blog's feed.

An interesting background on drugs (both legal and illegal) is here.

Related posts:

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

Feeling tired and burned out? Did you make a lot of decisions today?:

The current research tested the hypothesis that making many choices impairs subsequent self-control. Drawing from a limited-resource model of self-regulation and executive function, the authors hypothesized that decision making depletes the same resource used for self-control and active responding. In 4 laboratory studies, some participants made choices among consumer goods or college course options, whereas others thought about the same options without making choices. Making choices led to reduced self-control (i.e., less physical stamina, reduced persistence in the face of failure, more procrastination, and less quality and quantity of arithmetic calculations). A field study then found that reduced self-control was predicted by shoppers' self-reported degree of previous active decision making. Further studies suggested that choosing is more depleting than merely deliberating and forming preferences about options and more depleting than implementing choices made by someone else and that anticipating the choice task as enjoyable can reduce the depleting effect for the first choices but not for many choices. (PsycINFO Database Record (c) 2008 APA, all rights reserved)

Source: "Making choices impairs subsequent self-control: A limited-resource account of decision making, self-regulation, and active initiative." from Journal of Personality and Social Psychology
--

If you're curious about decision-making and choice, I recommend "How We Decide"  and "The Paradox of Choice: Why More Is Less."

Video lecture by Jonah Lehrer, author of "How We Decide."

Do empty shelves influence your purchase decisions?

How do birth control pills alter a woman's choice in men?

This is how the order things are presented in affects our decisions.

Here's the answer to whether "sleeping on it" really helps our decision-making.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

Is the US still pretty racist underneath it all?:

Historical representations explicitly depicting Blacks as apelike have largely disappeared in the United States, yet a mental association between Blacks and apes remains. Here, the authors demonstrate that U.S. citizens implicitly associate Blacks and apes. In a series of laboratory studies, the authors reveal how this association influences study participants' basic cognitive processes and significantly alters their judgments in criminal justice contexts. Specifically, this Black-ape association alters visual perception and attention, and it increases endorsement of violence against Black suspects. In an archival study of actual criminal cases, the authors show that news articles written about Blacks who are convicted of capital crimes are more likely to contain ape-relevant language than news articles written about White convicts. Moreover, those who are implicitly portrayed as more apelike in these articles are more likely to be executed by the state than those who are not. The authors argue that examining the subtle persistence of specific historical representations such as these may not only enhance contemporary research on dehumanization, stereotyping, and implicit processes but also highlight common forms of discrimination that previously have gone unrecognized. (PsycINFO Database Record (c) 2008 APA, all rights reserved)
Source: "Not yet human: Implicit knowledge, historical dehumanization, and contemporary consequences." from Journal of Personality and Social Psychology
--

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

When should we trust someone's reputation and when should we ignore it?:

Functional theories of reputation imply that individuals' reputations are tied to their history of behavior. However, indirect evidence suggests that the relation between reputation and behavior might be tenuous at best. In 3 studies, the authors tracked the development of reputations among individuals who engaged in multiple negotiation tasks across several weeks. The authors found that on average, individuals' reputations were only mildly related to their history of behavior. However, the link between reputation and behavior was stronger for some individuals than others--specifically, for individuals who were more well-known and received more social attention in the community. In contrast, for less well-known individuals, their behavior had little impact on their reputation. The findings have implications for psychologists' understanding of reputations, person perceptions in larger groups, and the costs and benefits of social visibility. (PsycINFO Database Record (c) 2008 APA, all rights reserved)
Source: "Are individuals' reputations related to their history of behavior?" from Journal of Personality and Social Psychology

Here's how much you'll lie to someone the first time you meet them.

These two posts will show you how to detect lies.

For more on the subject, check out the work of Paul Ekman.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]

Do you really have any idea what you're looking for in a romantic partner?:

In paradigms in which participants state their ideal romantic-partner preferences or examine vignettes and photographs, men value physical attractiveness more than women do, and women value earning prospects more than men do. Yet it remains unclear if these preferences remain sex differentiated in predicting desire for real-life potential partners (i.e., individuals whom one has actually met). In the present study, the authors explored this possibility using speed dating and longitudinal follow-up procedures. Replicating previous research, participants exhibited traditional sex differences when stating the importance of physical attractiveness and earning prospects in an ideal partner and ideal speed date. However, data revealed no sex differences in the associations between participants' romantic interest in real-life potential partners (met during and outside of speed dating) and the attractiveness and earning prospects of those partners. Furthermore, participants' ideal preferences, assessed before the speed-dating event, failed to predict what inspired their actual desire at the event. Results are discussed within the context of R. E. Nisbett and T. D. Wilson's (1977) seminal article: Even regarding such a consequential aspect of mental life as romantic-partner preferences, people may lack introspective awareness of what influences their judgments and behavior. (PsycINFO Database Record (c) 2008 APA, all rights reserved)
Source: "Sex differences in mate preferences revisited: Do people know what they initially desire in a romantic partner?" from Journal of Personality and Social Psychology 
--

Here's the answer to whether grandmom had premarital sex.

Loading mentions Retweet
Posted by Eric Barker 

Comments [0]