Tag Archives: Advice

Advice Isn’t About Info

Why is cynicism often taken as a sign of low status? One contributing factor is that we tend to get clearer evidence for cynical theories of the world when our status is falling, instead of rising:

I had lunch with a very senior managing partner at a venture capital firm as she was stepping down from the firm to spend more time with her family following a long and successful career in that company. She commented that once she announced her retirement, not only did her colleagues behave differently toward her, no longer inviting her to meetings and seeking her advice as often, but her time was less in demand by colleagues in the high-technology and venture capital communities more generally. Her wisdom and experience hadn’t changed— the only difference was her soon-to-be-diminished control over investment resources and positions in the venture capital firm. (Pfeffer’s book Power)

When you are young and rising in status, you can explain people listening to you more as their learning that you are wise. When you are older and falling in status, that explanation doesn’t work so well for why people listen to you less.

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Which supplements should a healthy person take?

I have recently been looking into which, if any, nutritional supplements I should start taking. I am in good general health so am looking for supplements that are likely to maintain or improve that health, not cure any particular condition. I have been using three excellent sources for this project, which I can recommend checking out: [1]

For those who want to save time, I will outline my key conclusions here in the hope that doing so will help you. I have decided to start taking:

  • Vitamin D3 (10µg or so a day)
  • Creatine (5g a day)
  • Zinc (30-160mg and Vitamin C (>1g)  each day for the duration of colds.

Tyrosine and potassium are also both cheap and so I will trial them to see if they improve my concentration. I don’t consider them likely to work, but they are at least worth testing. Fluoride mouthwashes also seem a cheap way to reduce the risk of cavities.

Vitamin D has a large evidence base suggesting it significantly lowers ‘all-cause mortality’ and improves both general and bone health. It is especially important now that I am living in the UK, where it is much harder to get Vitamin D from sun exposure.  It is also inexpensive. [2] Basically, it is a no-brainer. The 10µg is twice the daily recommended dietary dose in the UK. For some reason, Gwern is taking a very large 125µg each day. Personally I am tempted to err on the low side due to recent research suggesting too much Vitamin D can raise mortality.

Creatine is best known as a supplement for body-builders, but I am taking it primarily because I hope it will improve my cognition. The evidence to back this is thin, and only finds a significant effect among subgroups like vegetarians, perhaps because they get less creatine from meat consumption. However, the effect size identified was very large, it is cheap and largely safe. I am an almost-vegetarian and lift weights so it is more likely to be worthwhile for me. I will also be able test whether it improves my energy and concentration and stop using it if it doesn’t. This review also finds a range of other worthwhile positive impacts on health.

There is compelling evidence that zinc helps reduce the intensity and duration of colds. As summarised by Cochrane:

Zinc inhibits rhinoviral replication and has been tested in trials for treatment of the common cold. This review identified 15 randomized controlled trials, enrolling 1360 participants of all age groups, comparing zinc with placebo (no zinc). We found that zinc (lozenges or syrup) is beneficial in reducing the duration and severity of the common cold in healthy people, when taken within 24 hours of onset of symptoms.

There are some concerns about side effects, but they do not seem significant in the scheme of things. The tablets can also be obtained cheaply and easily. The appropriate dose is unclear, but studies included in the meta-analysis used between 30-160mg. I will probably choose a figure in the middle of that, and keep some tablets at work and home so I can always take them immediately at the onset of symptoms.

Despite a large number of studies, evidence to back an effect of Vitamin C on colds in the general population is mixed, with positive effects only reliably found on those engaging in extreme exercise. I worry that positive results on such sub-populations could just be the result of data mining, publication bias or other chicanery. Nonetheless, there are no side effects and the tablets are cheap. I consider it worth taking at the onset of colds, even if the probability of any real effect is under a third. Furthermore, effervescent vitamin C tablets are tasty and comforting to drink, and being as conspicuous as they are, may produce a larger than usual placebo effect.

Incidentally, most infection by common colds is caused by surface to surface contact. Using an ethanol handwash after touching shared surfaces, and reducing how often you touch your face with your hands, is likely to significantly reduce their occurrence. If you didn’t already have one, the desire not to get colds is a good selfish reason to wash your hands after using the bathroom. Poor general health is not the problem, as even healthy people who are exposed to the virus are highly likely to become infected.

If I were particularly worried about my blood pressure or cardiovascular health I would start

However, I am young, and consider heart disease to be a problem for the future.

I am keen to hear if I am making mistakes in the above, or missing out on other valuable chances to improve my life. Thanks to Seb Farquhar and Will Crouch for help with this research.

[1] Cochrane’s ‘house effect’ is to frequently find that there is insufficient evidence to draw any conclusion. Where they do make a recommendation, the evidence backing it is likely to be compelling. Gwern’s advice extends to unusual supplements about which there is little other information. Unfortunately, is in based in significant part on personal experiences. While he has tried to do blind and controlled trials  on himself with sufficient sample sizes, I don’t consider one individual’s experiences to be compelling evidence relative to large trials and meta-analyses. He often doesn’t have a statistically significant effect, in part due to small samples. Nonetheless, if the cost of a supplement is low, and it is safe, it can be worth taking even with a low probability of an effect. Snake-Oil Supplements falls somewhere in the middle.

[2] Reasonably cheap sources of: creatine, Vitamin D, Vitamin C and Zinc, tyrosine and potassium. Mouthwashes with over >200ppm of fluoride are widely available, but you should check the label.

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The value of time as a student

When I was at college, many of my associates had part time jobs, or worked during school breaks. They were often unpleasant, uninspiring, and poorly paid jobs, such as food preparation. Some were better, such as bureaucracy. But they were generally much worse than any of us would expect to be after graduating. I think this is normal.

It was occasionally suggested that I too should become employed. This seemed false to me, for the following reasons. There are other activities I want to spend a lot of time on in my life, such as thinking about things. I expect the nth hour of thinking about things to be similarly valuable regardless of when it happens. I think for a hundred extra hours this year, or a hundred extra hours in five years, I still expect to have about the same amount of understanding at the end, and for hours in ten years to be about as valuable either way.

Depending on what one is thinking about, moving hours of thinking earlier might make them more valuable. Understanding things early on probably adds value to other activities, and youth is purportedly helpful for thinking. Also a better understanding early on probably makes later observations (which automatically happen with passing time) more useful.

This goes for many things. Learning an instrument, reading about a topic, writing. Some things are even more valuable early on in life, such as making friends, gaining respect and figuring out efficient lifestyle logistics.

Across many periods of time, work is roughly like this. It is the total amount of work you do that matters. But between before and after graduating, this is not so!

If activity A is a lot more valuable in the future, and activity B is about as valuable now or in the future, all things equal I should trade them and do B now.

Yes, work before graduating might get you a better wage after graduating, but so will the same amount of work after graduating, and it will be paid more at the time. Yes, you will be a year behind say, but you will have done something else for a year that you no longer need to do in the future.

On the other hand, working seems a great option if you have pressing needs for money now, or a strong aversion to indebtedness. My guess is that the latter played a large part in others’ choices. In Australia, most youth whose families aren’t wealthy can get enough money to live on from the government, and anyone can defer paying tuition indefinitely.

It seems that college students generally treat their time as low value. Not only do they work for low wages, but they go to efforts to get free food, and are happy to spend an hour of three people’s time to acquire discarded furniture they wouldn’t spend a hundred dollars on. This seems to mean they don’t think these activities they could do at any time in their life are valuable. If you are willing to trade an hour you could be reading for $10 worth of value, you don’t value reading much. When these people are paid a lot more, will they give up activities like reading all together? If not, it seems they must think reading is also more valuable in the future than now, and the relative values are jumping roughly in line with the value of working at these times. Or do they just make an error? Or am I just making some error?

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How to motivate women to speak up

In mixed groups, women don’t talk as much as men. This is perhaps related to women being perceived as “bitches” if they do, i.e. pushy, domineering creatures whom one would best loath and avoid. Lindy West at Jezebel comments:

…it just goes back to that hoary old double standard—when men speak up to be heard they are confident and assertive; when women do it we’re shrill and bitchy. It’s a cliche, but it’s true. And it leaves us in this chicken/egg situation—we have to somehow change our behavior (i.e. stop conceding and start talking) while simultaneously changing the perception of us (i.e. asserting that assertiveness does not equal bitchiness). But how do you assert that your assertiveness isn’t bitchiness to a culture that perceives assertiveness as bitchiness? And how do you start talking to change the perception of how you talk when that perception is actively keeping you from talking? Answer: UGH, I HAVE NO IDEA…

One problem with asserting that your assertiveness doesn’t indicate bitchiness is that it probably does. If all women know that assertiveness will be perceived as bitchiness then those who are going to be perceived as bitches anyway (due to their actual bitchiness) and those who don’t mind being seen as bitches (and therefore are more likely to be bitches), will be the ones with the lowest costs to speaking up. So mostly the bitches speak, and the stereotype is self-fulfilling.

This model makes it clearer how to proceed. If you want to credibly communicate to the world that women who speak up are not bitches, first you need for the women who speak up to not be bitches. This can happen through any combination of bitches quietening down and non-bitches speaking up. Both are costly for the people involved, so they will need altruism or encouragement from the rest of the anti-stereotype conspiracy. Counterintuitively, not all women should be encouraged to speak more. The removal of such a stereotype should also be somewhat self-fulfilling – as it is reduced, the costs of speaking up decline, and non-bitchy women do it more often.

Interestingly and sadly, this is exactly opposite to the strategy that Lindy finds self-evident:

…But I guess I will start with this pledge I just made up: I, Lindy West, a shrill bitch, do hereby pledge to talk really really loud in meetings if I have something to say, even if dudes are talking louder and they don’t like me. I refuse to be a turtle—unless it is some really loud species of brave turtle with big ideas. I will not hold back just because I’m afraid of being called a loudmouth bitch (or a “trenchmouth loud ass,” which I was called the other day and as far as I can tell is some sort of pirate insult). Also, I will use the fuck out of the internet, because they can’t drown you out on the internet. The end. Amen or whatever.

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Surplus splitting strategy

When negotiating over the price of a nice chair at a garage sale, it can be useful to demonstrate there is only twenty dollars in your wallet. When determining whether your friend will make you a separate meal or you will eat something less preferable, it can be useful to have a longterm commitment to vegetarianism. In all sorts of situations where a valuable trade is to be made, but the distribution of the net benefits between the traders is yet to be determined, it can be good to have your hands tied.

If you can’t have your hands tied, the next best thing is to have a salient place to split the benefits. The garage sale owner did this when he put a price tag on the chair. If you want to pay something other than the price on the tag, you have to come up with some kind of reason, such as a credible commitment to not paying over $20. Many buyers will just pay the asking price.

This means manipulating salient ways to split benefits could be pretty profitable. This means people should probably be doing it on purpose. I’m curious to know if and how they do.

Often the default is to keep the way the benefits naturally fall without money (or anything else ‘extra’) changing hands. For instance suppose you come to lunch at my place and we both enjoy this to some extent. The default here is to keep the happiness we got from this, rather than say me paying you $10 on top.

So in such cases manipulating the division of benefits should mostly be done by steering toward more personally favorable variations on the basic plan. e.g. my suggesting you come to my place before you suggest that I come to yours. A straightforward way to get gains here is to just race to be the first to suggest a favorable option, but this is hard because it looks domineering to try to manipulate things in your favor in such a way. Unless you have some particular advantage at suggesting things fast and smoothly, such a race seems costly in expectation.

If in general trying to manipulate a group’s choice seems like a status-move or dominance-move, subtle ways to do this are valuable. Instead of a race to suggest options, you can have a prior race to make the options that you might want to suggest seem more suggestible. For instance if you’d prefer others come to your place than you go to others’ places, you can put a pool at your place, so suggestions to go to your place seem like altruism. If you know a lot of details about another person, you can use one of them to justify assuming that a particular outcome will be better for them. e.g. ‘We all know how much John likes steak, so we could hardly not go to Sozzy’s steak sauna!’. None of this works unless it’s ambiguous which way your own preferences go.

On the other hand if your preferences are very unambiguous, you can also do well. This is because others know your preferences without your having to execute a dominance move to inform them. If their preferences are less clear, it’s hard for them to compete with yours without contesting your status themselves. So arranging for others to know your preferences some other way could be strategic. e.g. If you and I are choosing which dessert to split, and it is common knowledge that I consider chocolate cake to be the high point of human experience, it is unlikely that we will get the carrot cake, even if you prefer it quite strongly.

So, strategy: if it’s clear that you have a pretty strong preference, make it quite obvious but not explicit. If you have a less clear preference, make it look like you have no preference, then position to get the thing you want based on apparently irrelevant considerations.

Even if the default is to transfer no cash, there can be a range of options that are clearly incrementally better for you and worse for me, with no salient division. e.g. If I invite you over for lunch, there are a range of foods I could offer you, some better for you, some cheaper for me. This seems quite similar to determining how much money to pay, given that someone will pay something.

In the lunch case I get to decide how good what I offer you is, and you have to take it or leave it. You can retaliate by thinking better or worse of me. You can’t very explicitly tell me how much you will think better or worse of me though, and you probably have little control over it. Your interpretation of my level of generosity toward you (and thus your feelings) and my expectations of your feelings are both heavily influenced by relevant social norms. So it’s not clear that either of us has much influence over which point is chosen. You could try to seem unforgiving or I could try to seem unusually ascetic, but these have many other effects, so are extreme ways to procure better lunching deals. I suspect this equilibrium is unusually hard to influence personally because there’s basically no explicit communication.

There are then cases where money or peanut butter sandwiches or something does change hands naturally, so ‘no transfer’ is not a natural option. Sometimes there is another default, such as the cost of procuring whatever is being traded. By default businesses put prices on items rather than consumers doing it, which appears to be an issue of convenience. If it’s clear how much surplus is being split, a natural way is to split it evenly. For instance if you and I make $20 busking in the street, it would be strange for you to take more than $10, even if you are a better singer. This fairness norm is again hard to manipulate personally, except by making it more or less salient. But it’s a nice example of a large scale human project to alter default surplus division.

When there are different norms among different groups, you can potentially reap more of it by changing groups. e.g. if you are a poor woman, you might do better in circles where men are expected to pay for many things.

These are just a random bunch of considerations that spring to mind. Do you notice people trying to manipulate default surplus divisions? How?

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On the goodness of Beeminder

Beeminder.com improves my life a lot. This is surprising: few things improve my life much, and when they do it’s usually because I’m imagining it. Or because they are things that everyone has known about for ages and I am slow on the uptake (e.g. not moving house three times a year, making a habit of eating breakfast, making habits at all). But Beeminder is new, and it definitely helps.

One measurable instrumental benefit of Beeminder is that I have exercised for half an hour or an hour per day on average since last October. Previously I exercised if I needed to get somewhere or if the fact that exercise is good for people crossed my mind particularly forcibly, or if some even less common events occurred. So this is big. It seems to help a lot for other things too, such as working, but the evidence there is weaker since I used to work pretty often anyway. I’m sorry that  I didn’t keep better track.

Unlike many other improvements to my life, I have some guesses about why this is so useful. But first let me tell you the basic concept of Beeminder.

Take a thing you can measure, such as how many pages you have written. Suppose you measure this every day, and enter the data as points in a graph. Suppose also that the graph contains a ‘road’ stretching up ahead of your data, to days that have not yet happened. Then you could play a game of keeping your new data points above the road. A single day below the road and you lose. It turns out this can be a pretty compelling game. This is basically Beeminder.

There are more details. You can change the steepness of the road, but only for a week in the future. So you can fine-tune the challengingness of a goal, but can’t change it out of laziness unless you are particularly forward thinking about your laziness (in which case you probably won’t sign up for this).

There is a lot of leeway in what indicators you measure, and some I tried didn’t help much. The main things I measure lately are:

  • number of 20 minute blocks of time spent working. They have to be continuous, though a tiny bit of interruption is allowed if someone else causes it
  • time spent exercising weighted by the type of exercise e.g. running = 2x dancing = 2 x walking
  • points accrued for doing tasks on my to-do list. When I think of anything I want to do I put it on the list, whether it’s watching a certain movie or figuring out how to make the to do list system better. Some things stay there permanently, e.g. laundry. I assign each task a number of points, which goes up every Sunday if it’s still on the list. I have to get 15 points per day or I lose.

At first glance, it looks like Beeminder is basically a commitment contract: that it gets its force from promising to take your money if you lose. In my experience this seems very minor. I often forget how much money is riding on goals, and seem to keep the ones with no money on about as well as the others. So at least for me the threat of losing money isn’t what’s going on.

What is going on? I think Beeminder – especially the way I use it – actually does a nice job of combining a bunch of good principles of motivation. Here are some I hypothesize:

Concrete steps

In order to use Beeminder for a goal, you need to be clear on how you will quantify progress toward it. This means being explicit about the parts it is made of. You can’t just intend to read more, you have to intend to read one philosophy paper every day. You can’t just intend to do your taxes, you have to intend to finish one of five forms every week. You can’t just intend to ponder whether you’re doing the right thing with your life, you have to intend to spend twenty minutes per week thinking up alternatives. Making a goal concrete enough to quantify it destroys ugh fields and makes it easier to start. ‘What get’s measured gets done’ – just making a concrete metric salient makes it easier to work toward than a similar vague goal.

Small steps

To Beemind a goal, you need to divide it into many small parts, so you can track progress. ‘Finish making my presentation’ might be explicit enough to measure, but the measure will be zero for a long time, then one. Breaking goals up into small steps has nice side effects. It removes ugh fields, induces near mode, makes success likely at any particular step. In Luke Muehlhauser’s terminology, it increases ‘expectancy’ and allows ‘success spirals’*. Trading long term goals for short term ones also avoids the kind of delay that might make it easy to succumb to procrastination.

Don’t break the chain 

Otherwise known as the Seinfeld hack. This might be the main thing that motivates me to keep my Beeminder goals, in the place of the money. Imagine you are skipping rope. You have made it to 70 skips. It was kind of hard, but you’re not so exhausted that you have to stop. You probably feel more compelled to keep going and make it to 80 than you did when you started. In general, once you have successfully done something a string of times, doing it again seems more desirable. Perhaps this is particular to OCD kinds of people, but a Google search suggests many find it useful.

Beeminder is a nicely flexible implementation of this, because the chain is a bit removed from what you are doing. You only have to maintain an average, so you can work extra one day to slack off the next. This doesn’t seem to undermine the motivational effect.

Hard lines in middle grounds

Firm commitments are naturally made to extremes. This is partly due to principled moral stances, which tend to be both extreme and firm. But that’s not all that’s going on. It’s hard to manage a principle of eating 40% less meat. If people want to eat less meat, they either eat none at all, or however much they feel like pushed down in a vague fashion with some bad feelings. The middle of the meat eating spectrum is too slippery for a hard line – it’s hard to tell how much you eat and annoying to track it. ‘None’ is salient and verifiable. In other realms intermediate lines are required: your diet can’t cut eating to zero. So often diets are more vague; which makes them harder to keep.

Similarly, it’s easy to commit to doing something every day, or every Sunday, or every month. It’s harder to commit to do a thing 2.7 times per week on average, because it’s awkward to track or remember this ‘habit’.

Compromised positions are often more desirable than extremes, and desired frequencies are unlikely to match memorable periods. So it’s a pity that vague commitments are harder to keep than firm ones. Often people don’t make commitments at all, because the readily available firm ones are too extreme. This is a big loss.

Beeminder helps with making firm commitments to intermediate positions. Since you only ever need to notice if the slope of your data isn’t steep enough, any rate is as easy to use as a goal. You can commit to eating 40% less meat, you just have to estimate once what 40% is, then record any meat you eat. I’ve used Beeminder to journal on average five nights per week. This is better than every night or no night, but would otherwise be annoying to track.

A small threat to overcome tiny temptations

While working, there are various moments when it would be easier to stop than to continue, particularly if you mostly feel the costs and benefits available in the next second or so, and if you assume that you could start again shortly (related). It is in these moments that I tend to stop and get a drink, or look out of the window, or open my browser or whatnot.

Counting short blocks of continuous time working pretty much solves this problem for me. The rule is that if you stop at all the whole block doesn’t count. So at any given moment there might be a tiny short term benefit to stopping for a second, but there is a huge cost to it. In my case this seems to remove stopping as an option, in the same way that a hundred dollar price on a menu item removes it as an option without apparent expense of willpower.

I originally thought it would be good to measure the amount of work I got done, rather than time spent doing it. This is because I want to get work done, not waste time on it. But given that I am working, I strongly prefer to do good work, fast. So there’s not much need for an added incentive there. I just need an incentive to begin, and one to not stop when a particular moment makes stopping look tasty. In Luke’s terminology, this kills impulsiveness.

Less stress

The long term threat of failing to write an essay is converted into a short term pleasure of winning each night at Beeminder. I’m not sure why this seems like a pleasure, rather than a threat of losing, but it does to me. Probably because losing at Beeminder isn’t that unpleasant or shameful. And how could getting points or climbing a scale not seem like winning? (This is about value in Luke’s terms).

More accuracy

It’s harder to maintain planning fallacy, overconfidence, or expectation of perfection in the future, in light of detailed quantitative data, and a definite trend line.

Just the difference between ‘I should do that’, and ‘I should do that, so how much time will it take?… About two hours, so I guess it should get 20 points.. that probably won’t be enough to compel me to do it soon, but that’s ok, it’s not urgent’ seems to change the mindset to one more sensitive to reality.

***

In sum, I think Beeminder partly works well because it causes you to think of your goals in small, concrete parts which can easily be achieved. It also makes achieving the parts more satisfying, and strings them into an addictive chain of just the right challengingness. Finally it lends itself to experimentation with a wide range of measures of success, such as measuring time blocks or ‘points’, at arbitrary rates. The value from innovations there is probably substantial. So, averse as I am to giving lifestyle advice, if you’re curious about the psychology of motivation in humans, or if you want to improve your life a lot, you should probably take a look at Beeminder.

*you can also increase expectancy by measuring something like time rather than progress.

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Advising For Status

It seems to me that people tend to ask their associates for advice too little, at least relative to the goal of improving their decisions. One key explanation: associates get mad when we don’t follow their advice:

We study the effect of participative decision making in an experimental principal agent game, where the principal can consult the agent’s preferred option regarding the task to be undertaken in the final stage of the game. We show that consulting the agent was beneficial to principals as long as they followed the agent’s choice. Ignoring the agent’s choice was detrimental to the principal as it engendered negative emotions and low levels of transfers. Nevertheless, the majority of principals were reluctant to change their mind and adopt the agent’s proposal. Our results suggest that the ability to change one’s own mind is an important dimension of managerial success. (more; HT Dan Houser)

Giving advice seems to confer status, at least if the advice is followed. Which helps explain why so much unwanted advice is offered.

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Bad Boss Advice

An article titled “Horrible bosses, and how to deal with them”:

It makes no sense to let a perpetually difficult situation fester. Rather than sweeping your feelings and concerns under the rug, you need to approach your supervisor and work to build a more productive relationship. Confronting your boss may cause some trepidation and fear about putting your job in jeopardy, but in the long run, it will be better to lay your cards on the table and try to resolve the troubling relationship. Every relationship is a two-way street, and the fact is that unless supervisors receive some feedback, they won’t realize the effect they are having on you or your colleagues. …

Once you’ve considered your supervisor’s perspective, schedule time for an honest, direct and positive conversation. Let your manager know that you sometimes find work frustrating, and you would like to better meet and exceed his expectations. By staying calm and professional while also avoiding blaming your boss, you’ll discover new ways of working together. Be prepared to leave if necessary. (more)

My professional therapist wife thinks this is bad advice and so do I. Maybe if a boss seemed ok overall but unaware that something they did really bugged you, then maybe you might gently and privately point that out. But if you’d call a boss “horrible,” then probably he’s well aware about what you don’t like, or he will punish you for seeming to challenge his authority.

But notice how supporting this advice lets one affirm many ideals:

  1. We “stand up” to and resist dominators, and will support others who try.
  2. It is not our lowered status we object to, oh no, we have objective reasons to complain.
  3. When a boss and employee conflict, the boss not the employee is usually to blame.
  4. We don’t secretly trash talk people we don’t like, no, we act in full view of all.
  5. We are reasonable, and reasonable people sit down and talk about their problems.
  6. We assume everyone is reasonable until they clearly prove otherwise.

We often give and consume advice more to affirm our ideals than to usefully improve decisions.

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Who Watches Watchers?

James Surowiecki says U.S. voters should support a new Consumer Financial Protection Bureau (C.F.P.B.) because consumers make finance mistakes:

Many Americans are ill informed about financial products. … You might think that businesses offering better products would have an incentive to make sure that potential customers were able to distinguish between ripoffs and good deals, but … there’s “a limit to how much explaining a creditor can do before losing the attention of its customers.” … Warren … talked to a number of banks about introducing a credit card with a higher up-front interest rate but lower penalty fees—a cost-effective arrangement for many people. But … there was no way to convince consumers that it was a good deal. In a world where marketing is all about the lowest teaser A.P.R., … you end up with a race to the bottom. …

The C.F.P.B. hopes to change this, largely by insuring that consumers will be told the true terms of a deal, in a simple and clear fashion. … Some bankers … maintain that the C.F.P.B. will go too far and end up strangling financial innovation. But, over the past century or so, new regulatory initiatives have inevitably been greeted with predictions of doom from the very businesses they eventually helped. … History suggests that business doesn’t always know what’s good for it. (more)

Let’s see, banks offer bad products, because many consumers are too lazy to notice and choose good products. So voters should empower regulators to make rules banning bad products, or at least overly hidden products. But isn’t it also possible that regulators might offer bad regulations, because voters are too lazy to notice and choose politicians who support good regulations? Why would voters pay more attention to choosing regulators than banking customers pay in choosing banks? And if voters pay less attention, how does adding this extra layer of choice improve the overall situation?

You might argue that when choosing their votes, ignorant voters can rely on interest groups and better informed elites, who share their interests. But banking customers could also rely on interest groups and informed elites in deciding where to bank. Yes, banks often try to create and buy off apparently independent groups and elites that pretend to offer neutral informed advice, to fool uninformed customers into buying bad products. But the same thing can happen at the political level – how can voters know which organized groups and elites are actually informed and share their interests?

It would seem that any process that ignorant voters could use to decide who to trust on regulations could also be used by ignorant consumers to decide which banks to patronize. Since banking consumers have far stronger incentives to choose well on banks than voters have to choose well on politicians, how can it help to replace a possibly quite severe ignorant banking consumer problem with an even more severe ignorant voter problem?

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Consulting Isn’t About Advice

An extended anecdote by MIT alum Keith Yost, paid $200,000/yr. straight out of school by Boston Consulting Group to consult in Dubai:

I was regularly advertised to clients as an expert with seemingly years of topical experience relevant to the case. … Even my very first case .. I was the most senior consultant on the team. …

Analytical skills were overrated, for the simple reason that clients usually didn’t know why they had hired us. They sent us vague requests for proposal, we returned vague case proposals, and by the time we were hired, no one was the wiser as to why exactly we were there.  I got the feeling that our clients were simply trying to mimic successful businesses, and that as consultants, our earnings came from having the luck of being included in an elaborate cargo-cult ritual. In any case it fell to us to decide for ourselves what question we had been hired to answer, and as a matter of convenience, we elected to answer questions that we had already answered in the course of previous cases – no sense in doing new work when old work will do.  …

Most of my day was spent thinking up and writing PowerPoint slides. …  What I could not get my head around was having to force-fit analysis to a conclusion. In one case, the question I was tasked with solving had a clear and unambiguous answer: By my estimate, the client’s plan of action had a net present discounted value of negative one billion dollars. … But the client did not want analysis that contradicted their own, and my manager told me plainly that it was not our place to question what the client wanted. … “Change the numbers, but don’t change the conclusion.”

Hat tip to Kevin Burke.

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