Archive for the ‘Cooperation’ Category

The Blond Not-So-Bond, or Why Women Laugh When I Call Myself “Dangerous and Edgy”

Bob Nease, PhD — Chief Scientist; Express Scripts — is a leader in the convergence of behavioral economics and healthcare; at Express Scripts, he is responsible for advancing the understanding of consumer behavior. To this end, he closely follows emerging science around human behavior and decision making, then works to develop tools and communications that help plan sponsors enable better health and value.

I recently had the chance to speak briefly to our account management team, the hundreds of people who work daily to support the needs of our clients.  They provide excellent consultation, solve problems, and are our heroes in the trenches who help the folks back at HQ understand the evolving, unspoken needs of the market.

Many of the faces were new to me (and only in part due to my spotty memory); gobs of talented people joined Express Scripts from NextRx over the past couple of months.  Clambering onto the stage in my black slacks, blue shirt, sweater vest, and tweed jacket, I introduced myself: “I’m Bob Nease, Chief Scientist at Express Scripts.  Based on what I’m wearing, I know that’s hard to believe; most people mistake me for a professional athlete or a secret agent.”

I was simultaneously pleased and hurt at the reaction: lots of laughter.  (And I know what you’re thinking… when was the last time I heard the phrase “secret agent”?) Over the next couple of days, I got lots of ribbing: “Hey, don’t you play for the Cardinals?” or “Hey, Bob… James Bob!”  Cute.

Which man would you trust more?  (In case you’re confused, I’m the one on the right.)

A recent study suggests that it might be my narrow face rather than the tweed jacket that’s to blame.  In a series of experiments, researchers at the University of St. Andrews found that men with broad faces were less trustworthy in economic exchanges, and that women tended to judge them as both less attractive and less trustworthy.  They summarize their findings (so I don’t have to):

Experiment 1 showed that the ratio of facial (bizygomatic) width to height predicts male reciprocation behavior in trust games such that wider faced males are more likely to exploit trust than are slimmer faced males. In Experiment 2, participants were less likely to trust male counterparts with wide rather than slim faces (independent of their attractiveness). Moreover, in Experiment 3, manipulating face width with computer graphics controlled attributions of trustworthiness, particularly for subordinate female evaluators. These results clearly demonstrate that facial width-to-height ratio is used as a valid cue to trustworthiness.

In other words, nice guys may not always get the girl, but neither do the Neanderthals.  And take that, Daniel Craig!  (But don’t beat me up.)

Groupon Dynamics

Julie Adelsberger — Senior Manager; Express Scripts — As senior manager of knowledge management, Julie Adelsberger is responsible for translating scientific research into accessible communications for plan sponsors and other healthcare stakeholders.

Groupon.com is a website that uses the power of social norms to encourage people to buy, and buy now.  Like some other retail sites, Groupon offers a daily deal.  Here’s the twist: The deal is good only if a minimum number of people sign up to buy the item.  If the minimum isn’t reached, the deal is canceled and those who signed up for the item aren’t charged.

So if you like the deal and sign up, there’s a good chance you’ll forward it on to friends, family, colleagues — maybe even near-strangers — to help meet the minimum.  There’s also a little loss aversion working here.  After you’ve clicked “buy,” you’ve mentally made that item yours, so you’re likely to put some effort into making sure the deal doesn’t fall through.

And if you’ve loved a deal and lost, could it make you more likely to buy future Groupon items you’re on the fence about, just to help a brother (or sister) out?

Happy Birthday, Internet!

Bob Nease, PhD — Chief Scientist; Express Scripts — is a leader in the convergence of behavioral economics and healthcare; at Express Scripts, he is responsible for advancing the understanding of consumer behavior. To this end, he closely follows emerging science around human behavior and decision making, then works to develop tools and communications that help plan sponsors enable better health and value.

The Internet is turning 40, and to celebrate DARPA is giving away $40,000.  The hitch?  You have to work with others across the country to identify the specific location of 10 red balloons.  The bet is that multiple solutions to this puzzle will be crafted.  For example, do you motivate people by splitting the prize?  Donating it to charity?  Making it fun?  Offering a lottery to those providing valid locations?

It’s a cool idea, but it makes me feel bad about the hokey tie I bought the Internet.

The Market Value of Social Norms

Bob Nease, PhD — Chief Scientist; Express Scripts — is a leader in the convergence of behavioral economics and healthcare; at Express Scripts, he is responsible for advancing the understanding of consumer behavior. To this end, he closely follows emerging science around human behavior and decision making, then works to develop tools and communications that help plan sponsors enable better health and value.

Tim Harford takes us on a tour of trust, which turns out to be one of the most valuable side effects of social norms. Some economists believe that trust – defined broadly – fully explains the difference between per capita income across countries. The implication is that 99.5% of our economic output is due to trust, with the remaining 0.5% due to hard work. (I don’t know where alimony fits into that equation.)

Trust operates in all sorts of ways, from saving money that would have to be spent on security to improving the functioning of the political system. But above all, trust enables people to do business with each other. Doing business is what creates wealth.

Center for Cost-Effective Consumerism board member David Laibson makes an appearance as well, describing a laboratory experiment in which trust increases based on some simple social cues (e.g., having a partner).