George Loewenstein
Carnegie Mellon University, Social and Decision Sciences, Faculty Member
Abstract Purpose. The biggest challenge for corporate wellness initiatives is low rates of employee participation. We test whether a behavioral economic approach to incentive design (ie, a lottery) is more effective than a direct economic... more
Abstract Purpose. The biggest challenge for corporate wellness initiatives is low rates of employee participation. We test whether a behavioral economic approach to incentive design (ie, a lottery) is more effective than a direct economic payment of equivalent monetary value (ie, a grocery gift certificate) in encouraging employees to complete health risk assessments (HRAs). Design. Employees were assigned to one of three arms.
Method To avoid participants' ability to discern the purpose of the study, we collected data in two stages. In the first, we administered a survey measuring seven narcissistic personality traits (Raskin & Terry, 1988), as well as more... more
Method To avoid participants' ability to discern the purpose of the study, we collected data in two stages. In the first, we administered a survey measuring seven narcissistic personality traits (Raskin & Terry, 1988), as well as more general features of mood and emotional well-being, to a convenience sample of approximately 1,000 general internists listed in a professional society roster.
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We surveyed 971 individuals about their experiences with personal loans.
Abstract Numerous studies on affective forecasting have demonstrated that people frequently underestimate their ability to adapt to adverse circumstances. But to date, these studies have not assessed people's affective forecasts early in... more
Abstract Numerous studies on affective forecasting have demonstrated that people frequently underestimate their ability to adapt to adverse circumstances. But to date, these studies have not assessed people's affective forecasts early in the experience of these new circumstances. We present two longitudinal studies of people experiencing new adversities. In the first study 54 patients experiencing new limb amputations were recruited to participate in a mailed survey.
ABSTRACT: Disclosure is often proposed as a remedy for conflicts of interest, which can bias and corrupt expert advice. However, we demonstrate several reasons why disclosure can fail to reduce bias and how it may actually exacerbate it.... more
ABSTRACT: Disclosure is often proposed as a remedy for conflicts of interest, which can bias and corrupt expert advice. However, we demonstrate several reasons why disclosure can fail to reduce bias and how it may actually exacerbate it. First, disclosure produces inadequate discounting of advice by recipients, so that even advice disclosed as totally unreliable can have a lasting impact on those receiving it.
Abstract Contrary to the many accounts of the destructive effects of strong emotions, this article argues that the most serious problems facing the world are caused by a deficiency rather than an excess of emotions. It then shows how an... more
Abstract Contrary to the many accounts of the destructive effects of strong emotions, this article argues that the most serious problems facing the world are caused by a deficiency rather than an excess of emotions. It then shows how an evolutionary account of emotion can explain when and why such deficiencies occur.
BACKGROUND: Poor adherence to medications is a major cause of morbidity and inadequate drug effectiveness. Efforts to improve adherence have typically been either ineffective or too complex to implement in clinical practice. Lottery-based... more
BACKGROUND: Poor adherence to medications is a major cause of morbidity and inadequate drug effectiveness. Efforts to improve adherence have typically been either ineffective or too complex to implement in clinical practice. Lottery-based incentive interventions could be a scalable approach to improving adherence. METHODS: This was a randomized, controlled clinical trial of a daily lottery-based incentive in patients on warfarin stratified by baseline international normalized ratio (INR).
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Abstract 1. The accuracy of predictions of how people will react to a medical test result is important because it may influence the decision to be tested. It was hypothesized that people would overpredict their own long-term reactions to... more
Abstract 1. The accuracy of predictions of how people will react to a medical test result is important because it may influence the decision to be tested. It was hypothesized that people would overpredict their own long-term reactions to HIV test results (ie, that they would feel better in response to seropositive results and worse in response to negative results than they expected to).
Abstract 1. Community members often evaluate health conditions more negatively than do the patients who have them. The authors investigated whether experience with a health condition reduces this discrepancy by surveying colostomy... more
Abstract 1. Community members often evaluate health conditions more negatively than do the patients who have them. The authors investigated whether experience with a health condition reduces this discrepancy by surveying colostomy patients by mail (n= 195), some of whom (n= 100) had their colostomies reversed and normal bowel function restored. The authors also surveyed a community sample recruited via the Internet (n= 567).
In 1961, economist and Nobel Laureate George Stigler (1) initiated the “economics of information” when he relaxed an assumption that had dominated economics until that point. Rather than assume that people are fully knowledgeable of... more
In 1961, economist and Nobel Laureate George Stigler (1) initiated the “economics of information” when he relaxed an assumption that had dominated economics until that point. Rather than assume that people are fully knowledgeable of relevant information when it comes to making a decision, he allowed for the possibility that people might lack information and be motivated to acquire it.
Abstract: Previous experimental research conducted by the authors has found that self-serving biases are a major cause of negotiation impasses. This article reports experimental studies that test the ability to counteract the biased... more
Abstract: Previous experimental research conducted by the authors has found that self-serving biases are a major cause of negotiation impasses. This article reports experimental studies that test the ability to counteract the biased integration of information that can impede settlement. In this study, we show that a simple intervention can mitigate such biases and promote efficients settlement of disputes.
In recent years, despite lingering skepticism, the influence of psychology on economics has steadily expanded. Challenged by the discovery of individual and market level phenomena that contradict fundamental economic assumptions, and... more
In recent years, despite lingering skepticism, the influence of psychology on economics has steadily expanded. Challenged by the discovery of individual and market level phenomena that contradict fundamental economic assumptions, and impressed by theoretical and methodological advances, economists have begun to import insights from psychology into their work on diverse topics.
Research on bargaining suggests that the efficiency of bargaining is related to the size of the surplus to be divided and to uncertainty about the opponent. We conducted a bargaining experiment which manipulated both of these factors. We... more
Research on bargaining suggests that the efficiency of bargaining is related to the size of the surplus to be divided and to uncertainty about the opponent. We conducted a bargaining experiment which manipulated both of these factors. We find that the presence of uncertainty decreases bargaining efficiency, while the effect of contract zone size depends on whether there is uncertainty or certainty.
Philosophers have long tussled over whether moral judgments are the products of logical reasoning or simply emotional reactions. From Jane Austen's Sense and Sensibility to the debates of modern psychologists, the question of whether... more
Philosophers have long tussled over whether moral judgments are the products of logical reasoning or simply emotional reactions. From Jane Austen's Sense and Sensibility to the debates of modern psychologists, the question of whether feeling or sober rationality is the better guide to decision making has been a source of controversy. In Do Emotions Help or Hurt Decision Making? Kathleen D. Vohs,
Thecontingent valuation (CV) methodology assigns prices to environmental amenities by asking people how much they would be willing to pay in order to preserve or acquire those amenities. If this measurement procedure is valid, then... more
Thecontingent valuation (CV) methodology assigns prices to environmental amenities by asking people how much they would be willing to pay in order to preserve or acquire those amenities. If this measurement procedure is valid, then responses should be sensitive to relevant changes in the amenities being judged and insensitive to irrelevant changes.
We review evidence from our published and ongoing research that disclosing conflicts of interest has unintended consequences, helping conflicted advisors and harming their advisees: With disclosure, advisors feel comfortable giving more... more
We review evidence from our published and ongoing research that disclosing conflicts of interest has unintended consequences, helping conflicted advisors and harming their advisees: With disclosure, advisors feel comfortable giving more biased advice, but advisees do not properly adjust for this and generally fail to sufficiently discount biased advice.
Chi sa quello che voglio fare? Chi sa quello che vuole fare chiunque altro? Come possiamo avere certezze su una cosa del genere? Non è tutta una questione di chimica cerebrale, segnali che vanno e vengono, energia elettrica nella... more
Chi sa quello che voglio fare? Chi sa quello che vuole fare chiunque altro? Come possiamo avere certezze su una cosa del genere? Non è tutta una questione di chimica cerebrale, segnali che vanno e vengono, energia elettrica nella corteccia? Come posso sapere se questa cosa è davvero quel che voglio fare o solo un impulso nervoso di qualche tipo che attraversa il cervello?
Among recent contributions of psychology to economics, perhaps the most compelling and influential have been those that have enriched the economic concept of utility. In its early incarnations, utility was a robustly psychological... more
Among recent contributions of psychology to economics, perhaps the most compelling and influential have been those that have enriched the economic concept of utility. In its early incarnations, utility was a robustly psychological construct. In the century following Bentham's (1789) conception of utility, economists and moral philosophers devoted considerable discussion to its characteristics and determinants.
BACKGROUND: Compared with white persons, African Americans have a greater incidence of diabetes, decreased control, and higher rates of microvascular complications. A peer mentorship model could be a scalable approach to improving control... more
BACKGROUND: Compared with white persons, African Americans have a greater incidence of diabetes, decreased control, and higher rates of microvascular complications. A peer mentorship model could be a scalable approach to improving control in this population and reducing disparities in diabetic outcomes. OBJECTIVE: To determine whether peer mentors or financial incentives are superior to usual care in helping African American veterans decrease their hemoglobin A (1c)(HbA (1c)) levels.
Abstract Behavioral economic-based interventions are emerging as powerful tools to help individuals accomplish their own goals, including weight loss. Deposit contract incentive systems give participants the opportunity to put their money... more
Abstract Behavioral economic-based interventions are emerging as powerful tools to help individuals accomplish their own goals, including weight loss. Deposit contract incentive systems give participants the opportunity to put their money down toward losing weight, which they forfeit if they fail to lose weight; lottery incentive systems enable participants to win money if they attain weight loss goals.
Abstract: Disclosure is often advocated as a potential solution to conflicts of interest. Yet, in two experiments we show that disclosure of a doctor's financial, or non-financial, conflict of interest has an adverse effect on the... more
Abstract: Disclosure is often advocated as a potential solution to conflicts of interest. Yet, in two experiments we show that disclosure of a doctor's financial, or non-financial, conflict of interest has an adverse effect on the doctor-patient relationship. Disclosure puts the patient in an effective bind: it decreases trust in a doctor's advice while simultaneously increasing discomfort to turn down the doctor's advice due to the patients' desire to avoid signaling distrust to their doctor.
" Judgment under Uncertainty: Heuristics and Biases: Biases in Judgments Reveal Some Heuristics of Thinking under Uncertainty"/Amos Tversky and Daniel Kahneman/how do people assess the probability of an uncertain event or the value of an... more
" Judgment under Uncertainty: Heuristics and Biases: Biases in Judgments Reveal Some Heuristics of Thinking under Uncertainty"/Amos Tversky and Daniel Kahneman/how do people assess the probability of an uncertain event or the value of an uncertain quantity/shows that people rely on a limited number of heuristic principles which reduce the complex tasks of assessing probabilities and predicting values to simpler judgmental operations
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The accounting profession has drawn heavy fire over the past year. Last January, the partners in one Big Five accounting firm were discovered to be holding investments in the companies they audited, a practice unambiguously forbidden... more
The accounting profession has drawn heavy fire over the past year. Last January, the partners in one Big Five accounting firm were discovered to be holding investments in the companies they audited, a practice unambiguously forbidden under SEC rules. The scandal provoked the SEC to undertake a thorough review of the profession. The SEC's main focus, however, has not been on the assets held by individual auditors but on the accounting firms' consulting businesses, which now contribute up to 70% of their revenues.
Abstract Context: The value of good end-of-life (EOL) care could be underestimated if its effects are assessed using the standard metric of quality-adjusted survival, especially if the time horizon is limited to the duration of the EOL... more
Abstract Context: The value of good end-of-life (EOL) care could be underestimated if its effects are assessed using the standard metric of quality-adjusted survival, especially if the time horizon is limited to the duration of the EOL care. This issue is particularly problematic in the intensive-care unit (ICU) where death is frequent, care is difficult, and costs are high.
The adoption of mandatory disclosure under amended Rule 26 of the Federal Rules of Civil Procedure inaugurated a sweeping regime of reform aimed at curtailing litigation costs. Despite widespread (indeed almost complete) opposition, 1 and... more
The adoption of mandatory disclosure under amended Rule 26 of the Federal Rules of Civil Procedure inaugurated a sweeping regime of reform aimed at curtailing litigation costs. Despite widespread (indeed almost complete) opposition, 1 and without the benefit of any systematic review of the experience in pilot jurisdictions, 2 the amended procedures that went into effect on December 1, 1993 mark a significant alteration of the litigation process.
Abstract Background: Obesity among children is a serious problem and effective programs are scarce. the internet is a promising weight management tool. Financial incentives to promote weight loss among adults have shown positive results.... more
Abstract Background: Obesity among children is a serious problem and effective programs are scarce. the internet is a promising weight management tool. Financial incentives to promote weight loss among adults have shown positive results. We compared a standard in-person program for children to an online program with and without financial incentives in terms of 6-month weight change.
Background. A number of studies show that the general public often estimates that the quality of life (QOL) associated with various health conditions is worse than patients say it is. These studies raise the possibility that people... more
Background. A number of studies show that the general public often estimates that the quality of life (QOL) associated with various health conditions is worse than patients say it is. These studies raise the possibility that people overestimate the impact that unfamiliar health conditions will have on their quality of life.
Resumen: Los escándalos financieros están a la orden del día. Existen auditores sin escrúpulos que falsifican las cuentas para proteger a unos clientes que carecen igualmente de escrúpulos. Sin embargo, no todos los errores se hacen de... more
Resumen: Los escándalos financieros están a la orden del día. Existen auditores sin escrúpulos que falsifican las cuentas para proteger a unos clientes que carecen igualmente de escrúpulos. Sin embargo, no todos los errores se hacen de forma deliberada, sino que la naturaleza frecuentemente subjetiva del auditor hace que se puedan cometer distorsiones involuntarias.
ALL DECISIONS REQUIRE us to evaluate counterfactuals—situations other than the one we are in. Decision makers routinely ask themselves questions such as, How would I feel eating that dish, driving around in that car, married to that... more
ALL DECISIONS REQUIRE us to evaluate counterfactuals—situations other than the one we are in. Decision makers routinely ask themselves questions such as, How would I feel eating that dish, driving around in that car, married to that person, attending that school, or vacationing in that country? Questions of this type require predictions of what Daniel Kahneman calls" experience utility"(Kahneman and Snell, 1990, 1992). The accuracy of such predictions is critical for effective decision making.
Over the past decade, docket pressures on the federal judiciary have prompted dramatic revisions in federal procedure. These revisions have sharply increased the administrative power of the federal courts to determine which claims are... more
Over the past decade, docket pressures on the federal judiciary have prompted dramatic revisions in federal procedure. These revisions have sharply increased the administrative power of the federal courts to determine which claims are sufficiently meritorious to be brought to trial.
ABSTRACT This paper presents the first empirical anatysis that demonstrates that juries differ from judges in awarding punitive damages. Our review of punitive damages awards of $100 million or more identified 63 such awards, of which... more
ABSTRACT This paper presents the first empirical anatysis that demonstrates that juries differ from judges in awarding punitive damages. Our review of punitive damages awards of $100 million or more identified 63 such awards, of which juries made 95 percent. These jury awards are highly unpredictable and are not significantly correlated with compensatory damages.
Abstract Professionals often give advice to many anonymous people. For example, financial analysts give public recommendations to trade stock, and medical experts formulate clinical guidelines that affect many patients. Normatively,... more
Abstract Professionals often give advice to many anonymous people. For example, financial analysts give public recommendations to trade stock, and medical experts formulate clinical guidelines that affect many patients. Normatively, awareness of the advice-recipient's identity should not influence the quality of advice, and when advice affects a larger number of people, if anything, greater care should be taken to ensure its accuracy.
Abstract 1. Evaluates the relative importance of intuition and the systematic approach of decision analysis (systematicity) in informed consent. Research in cognitive psychology has shown that people are rapidly overwhelmed by having to... more
Abstract 1. Evaluates the relative importance of intuition and the systematic approach of decision analysis (systematicity) in informed consent. Research in cognitive psychology has shown that people are rapidly overwhelmed by having to consider more than a few options in making choices, including medical decisions. Research also indicates that there is no single standard for optimal decision making in decisions that may hinge on patient values and emotions.
Abstract Inspired by research showing that wanting (one's motivation to engage in an activity) often diverges from liking (one's enjoyment of the activity), this article details the development and validation of a new measure to examine... more
Abstract Inspired by research showing that wanting (one's motivation to engage in an activity) often diverges from liking (one's enjoyment of the activity), this article details the development and validation of a new measure to examine the distinction between sexual wanting and liking within a relationship: the partner-specific sexual liking and wanting (PSSLW) scale. In Study 1, participants (N= 1145; 63% female) completed items intended to measure PSSLW.