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Choiceology with Katy Milkman

The Lucky Loonie: With Guests Peter Jordan, Trent Evans & Don Moore

Choiceology with Katy Milkman

Charles Schwab

Investing, Social Sciences, Behavioral Economics, Science, Society & Culture, Decision Making, Charles Schwab, Dan Heath, Business, Katy Milkman

4.71.5K Ratings

🗓️ 9 September 2019

⏱️ 33 minutes

🧾️ Download transcript

Summary

There’s something satisfying about the close door button in an elevator, especially when you’re in a rush. However, it turns out that most of those close door buttons aren’t actually connected to anything; they have no effect. So why are they there? In this episode of Choiceology with Katy Milkman, we explore a quirk in the way people understand their ability to influence certain events. The 2002 Winter Olympics in Salt Lake City were a watershed moment for the Canadian men’s and women’s hockey teams. The men’s team hadn’t won a gold medal in 50 years, and the women’s team had never won gold, coming up short in prior Olympic events. The Canadians were facing powerhouse American teams, so they needed every advantage they could get. Enter Trent Evans. He was part of the Olympic ice-making team, though his allegiance was with the Canadians. During the initial ice making process, he marked the center of the rink with a small artifact in hopes that it would bring good luck to the Canadian teams. That artifact came to be seen by many as a key ingredient to success in the gold medal games. Broadcaster Peter Jordan covered the games for the Canadian Broadcasting Corporation and recounts the subterfuge involved in hiding the good luck charm. Peter was the host of the CBC television series It’s A Living for seven years. Good luck charms and superstitious beliefs are common, but generally easy to disprove. Still, this tendency to overestimate one’s influence appears regularly, even among skeptics. As an experiment, we had several volunteers roll a pair of dice in a simple board game scenario where they were aiming to roll a certain number to win the game. In almost every iteration of the experiment, our highly skeptical volunteers displayed this overestimation of influence. To learn more about the reasons for this behavior, we invited Don Moore to talk about his research on the phenomenon. Don is the Lorraine Tyson Mitchell Chair in Leadership and Communication at UC Berkeley Haas. To close the episode, Katy explores some of the contexts where this bias may impact important decisions in business and in life.

Transcript

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0:00.0

This probably happens to you from time to time.

0:15.0

You're in a rush, but the elevator you're on is taking longer than you'd like to get going.

0:21.0

So you press the closed door button to help speed things along.

0:25.0

Finally.

0:29.0

Except that most modern elevator functions are automated,

0:32.0

and it's pretty likely that the closed

0:34.2

door button isn't even connected to anything.

0:37.0

And yet pressing that button makes you feel like you've accelerated the process just

0:40.9

a little bit. Why is that? And if the closed-door buttons aren't

0:46.0

functional, why are they even there?

0:50.1

On this episode of Troisology, we're looking at the way people tend to overestimate,

0:54.4

and also sometimes underestimate, their ability to influence uncertain events.

0:59.6

Everything from elevators to simple board games to international sports rivalries. I'm Katie Milkman and this is Choiceology, an original podcast from Charles Schwab.

1:20.0

It's a show about the psychology and economics behind the decisions people make.

1:24.6

We bring you true stories involving high stakes choices, and then we explore the latest research

1:29.5

in behavioral science to help you avoid costly mistakes and reach your goals. I would say I was best at Zamboni in if that's a word that was pretty good.

1:51.6

I could drive that two-ton machine pretty well.

1:55.0

This is Peter.

1:56.0

I'm Peter Jordan.

1:57.0

Peter hosted a TV show for seven years called It's a Living.

2:01.0

Each episode he would try several different jobs, often with hilarious results.

2:06.0

I think we worked out that over the course of seven years I did 586 different jobs.

...

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