Cass R. Sunstein, a partitioner of 'The Kahneman Methodology'?
Newspaper Reader engages is some revelatory Political Archelogy.
Mr. Sunstein latest political intervention on behalf of another Academic/Technocrat should not surprise. Daniel Kahneman represents the virtue of seeking ‘a consensus’ of a kind, with his critics in an Academic World, consonant with the adversarial, is presented as a virtue?
I’ll offer a selection of Sunstein’s 1093 word argument.
Our all-American belief that money really does buy happiness is roughly correct for about 85 percent of us. We know this thanks to the latest and perhaps final work of Daniel Kahneman, the Nobel Prize winner who insisted on the value of working with those with whom we disagree.
Professor Kahneman, who died last week at the age of 90, is best known for his pathbreaking explorations of human judgment and decision making and of how people deviate from perfect rationality. He should also be remembered for a living and working philosophy that has never been more relevant: his enthusiasm for collaborating with his intellectual adversaries. This enthusiasm was deeply personal. He experienced real joy working with others to discover the truth, even if he learned that he was wrong (something that often delighted him).
Back to that finding, published last year, that for a strong majority of us, more is better when it comes to money. In 2010, Professor Kahneman and the Princeton economist Angus Deaton (also a Nobel Prize winner) published a highly influential essay that found that, on average, higher-income groups show higher levels of happiness — but only to a point. Beyond a threshold at or below $90,000, Professor Kahneman and Professor Deaton found, there is no further progress in average happiness as income increases.
Sunstein offers this as an object lesson of the ‘Kahneman Methodology’:
Eleven years later, Matthew Killingsworth, a senior fellow at the Wharton School of the University of Pennsylvania, found exactly the opposite: People with higher income reported higher levels of average happiness. Period. The more money people have, the happier they are likely to be.
What gives? You could imagine some furious exchange in which Professor Kahneman and Professor Deaton made sharp objections to Dr. Killingsworth’s paper, to which Dr. Killingsworth answered equally sharply, leaving readers confused and exhausted.
Professor Kahneman saw such a dynamic as “angry science,” which he described as a “nasty world of critiques, replies and rejoinders” and “as a contest, where the aim is to embarrass.” As Professor Kahneman put it, those who live in that nasty world offer “a summary caricature of the target position, refute the weakest argument in that caricature and declare the total destruction of the adversary’s position.” In his account, angry science is “a demeaning experience.” That dynamic might sound familiar, particularly in our politics.
Instead, Professor Kahneman favored an alternative that he termed “adversarial collaboration.” When people who disagree work together to test a hypothesis, they are involved in a common endeavor. They are trying not to win but to figure out what’s true. They might even become friends.
Jeremy Waldron in The New York Review of Books offered a review of October 9, 2014 of two books by Cass Sunstein:
Why Nudge? The Politics of Libertarian Paternalism
by Cass R. Sunstein
Yale University Press, 195 pp., $25.00
Conspiracy Theories and Other Dangerous Ideas
by Cass R. Sunstein
Simon and Schuster, 267 pp., $26.00
I’ve made some choices for The Reader, that she may not agree with, so feel free to comment! But Waldron seems to be right on target in his criticisms of these books!
…
Employers sometimes try to educate people to make better choices, offering them retirement-planning seminars, for example. But the lessons of these seminars are soon forgotten: “Employees often leave educational seminars excited about saving more but then fail to follow through on their plans.” And so Sunstein and Thaler suggested a different strategy. Instead of teaching people to overcome their inertia, we might take advantage of their inertia to solve the problem. Suppose we arrange things so that enrollment at some appropriate level of contribution is the default position—the position that obtains if the employee does nothing. Something has to be the default position; why not make it the position that accrues most to the employee’s benefit, “using inertia to increase savings rather than prevent savings”?
Resetting the default position this way is what Thaler and Sunstein call a “nudge.” It exploits the structure of the choice to encourage a more desirable option. The decision is not taken entirely out of the employee’s hands. She can still change it and revert to a strategy of no contributions or diminished contributions to her retirement funds. But in that case she has to make an effort; this is where she has to overcome her inertia.
Nudging is an attractive strategy. People are faced with choices all the time, from products to pensions, from vacations to voting, from requests for charity to ordering meals in a restaurant, and many of these choices have to be made quickly or life would be overwhelming. For most cases the sensible thing is not to agonize but to use a rule of thumb—a heuristic is the technical term—to make the decision quickly. “If it ain’t broke don’t fix it,” “Choose a round number,” “Always order the special,” and “Vote the party line” are all heuristics. But the ones people use are good for some decisions and not others, and they have evolved over a series of past situations that may or may not resemble the important choices people currently face.
Here begins Waldron’s critical analysis:
Nudging is about the self-conscious design of choice architecture. Put a certain choice architecture together with a certain heuristic and you will get a certain outcome. That’s the basic equation. So, if you want a person to reach a desirable outcome and you can’t change the heuristic she’s following, then you have to meddle with the choice architecture, setting up one that when matched with the given heuristic delivers the desirable outcome. That’s what we do when we nudge.
All of this sounds like a marketer’s dream, and I will say something about its abusive possibilities later. But Sunstein and Thaler have in mind that governments might do this in a way that promotes the interests of their citizens. Governments might also encourage businesses and employers to use it in the interests of their customers and employees. The result would be a sort of soft paternalism: paternalism without the constraint; a nudge rather than a shove; doing for people what they would do for themselves if they had more time or greater ability to pick out the better choice
…
Mr. Waldron ends his review here:
…
There’s a sense underlying such thinking that my capacities for thought and for figuring things out are not really being taken seriously for what they are: a part of my self. What matters above all for the use of these nudges is appropriate behavior, and the authorities should try to elicit it by whatever informational nudge is effective. We manipulate things so that we get what would be the rational response to true information by presenting information that strictly speaking is not relevant to the decision.
I am not attributing informational nudging to Sunstein. But it helps us see that any nudging can have a slightly demeaning or manipulative character. Would the concern be mitigated if we insisted that nudgees must always be told what’s going on? Perhaps. As long as all the facts are in principle available, as long as it is possible to find out what the nudger’s strategies are, maybe there is less of an affront to self-respect. Sunstein says he is committed to transparency, but he does acknowledge that some nudges have to operate “behind the back” of the chooser.
It may seem a bit much to saddle Cass Sunstein with all this. The objections about dignity and manipulation that I’ve been considering can sound hysterical. It is perfectly reasonable for him to ask: “Is there anything insulting or demeaning about automatic enrollment in savings and health care plans, accompanied by unconstrained opt-out rights?” The strategies he advocates, when used wisely and well, seem like a sensible advance in public regulation, particularly when we consider them nudge by nudge.
Still, it is another matter whether we should be so happy with what I have called “nudge-world.” In that world almost every decision is manipulated in this way. Choice architects nudge almost everything I choose and do, and this is complemented by the independent activity of marketers and salesmen, who nudge away furiously for their own benefit. I’m not sure I want to live in nudge-world, though—as a notoriously poor chooser—I appreciate the good-hearted and intelligent efforts of choice architects such as Sunstein to make my autonomous life a little bit better. I wish, though, that I could be made a better chooser rather than having someone on high take advantage (even for my own benefit) of my current thoughtlessness and my shabby intuitions.
Here is Sunstein’s reply to Waldron’s critical analysis and Waldron’s reply:
In response to:
It’s All for Your Own Good from the October 9, 2014 issue
To the Editors:
I am most grateful to Jeremy Waldron for his generous and clear-headed review of my books Why Nudge? The Politics of Libertarian Paternalism and Conspiracy Theories and Other Dangerous Ideas [NYR, October 9]. Waldron worries that nudging poses a risk to autonomy and dignity, but it is important to see that nudges are meant to promote both of those values. Disclosure of relevant information (about the terms of a school loan or a mortgage, for example) is hardly a threat to human dignity. When people are asked what they would like to choose, their autonomy is enhanced, not undermined. (Active choosing is a prime nudge.) A GPS certainly nudges, but it does not compromise what Waldron favors, which is “a steadfast commitment to self-respect.” Waldron is right to worry about the risk of manipulation, but the whole idea of nudging is designed to preserve freedom of choice, and in that sense both autonomy and dignity.
Cass R. Sunstein
Robert Walmsley University Professor
Harvard University
Cambridge, Massachusetts
Jeremy Waldron replies:
I appreciate this clarification. Many nudges simply involve an improvement of the decision-making environment and of the information available to choosers. Professor Sunstein is right that there can be no objection to that. But in his book, the term “nudge” also comprises attempts to manipulate people behind their backs, using their own defective decision-making to privilege outcomes that we think they ought to value. I think both of us should be concerned about that and about a world in which that more sinister sense of nudging becomes a widespread instrument of public policy.
This Issue
October 23, 2014
https://www.nybooks.com/articles/2014/10/23/nudges-good-and-bad/
The Reader might think to herself, that Sunstein has ‘evolved’ in light of his praise of for the ‘Kahneman Methodology’?
Final thought: ‘Conspiracy Theories’ is/was a mask to hide the role that The American National Security State played in the assassination John Kennedy. The test of fealty to this lie, was professing a belief that only ‘crackpots’ believed in these ‘theories’. Arlen Spector was its apologist till the end!
Newspaper Reader