Choiceology with Katy Milkman

by Charles Schwab

31m

average length

39

episodes

4

followers

Can we learn to make smarter choices? Wharton professor Katy Milkman shares stories of irrational decision making--from historical blunders to the kinds of everyday errors that could affect your future. Choiceology, an original podcast from Charles Schwab, explores the lessons of behavioral economics, exposing the psychological traps that lead to expensive mistakes. Season 1 of Choiceology was hosted by Dan Heath, bestselling author of Made to Stick and Switch. Podcasts are for informational purposes only. This channel is not monitored by Charles Schwab. Please visit schwab.com/contactus for contact options.

Best Choiceology with Katy Milkman episodes upvoted by the community

Last updated on May 28, 2020, 4:00 am

#2

A Choice Apart: With Guests Max Bazerman & Vivienne Wagner

April 27, 2020 • 28m

Have you ever purchased a car or a motorcycle or a boat, based on some particular quality it had that made you fall in love? Maybe it was candy apple red. Maybe it had sleek lines. Maybe the engine made a pleasing purr. Hopefully that decision was a happy one. But what happens when the red sports car spends most of its time in the shop? Or the sleek motorbike is hard on your back? Or the purring boat engine is a gas-guzzler?In this episode of Choiceology with Katy Milkman, we look at how our preferences tend to shift when we evaluate a choice on its own versus side-by-side with other possible options.The episode begins with Vivienne Wagner and her family’s decision to adopt an adorable puppy after seeing a popular movie that featured the breed. (You know, the spotty dogs—over a hundred of them.) It’s a cautionary tale about a lovable but incredibly difficult pooch named Barkley and the perils of selecting a family pet in a vacuum. Max Bazerman is an authority on the phenomenon of shifting preferences when decisions are made separately or jointly. He joins Katy to discuss the ways in which our evaluation tendencies can impact activities ranging from hiring an employee to communicating with a spouse. He also discusses strategies to be more deliberative while making important decisions.Max Bazerman is the Jesse Isidor Straus Professor of Business at the Harvard Business School and the Harvard Kennedy School and the author of many books, including, most recently, The Power of Experiments: Decision-Making in a Data-Driven World with Mike Luca.Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.(0420-0A3H)

0

0

0

#3

The Temptation of Now: With Guests Richard Thaler & Angela Duckworth

November 12, 2018 • 25m

Most of us would like to think we make decisions for our own good. Presented with the imaginary choice between a bag of salty, greasy potato chips and a healthy salad, you might opt, in principle, for the salad. But what happens when that bag of chips is freshly opened, sitting there right in front of you? Do you change your mind? In this episode of Choiceology with Katy Milkman, we look at a bias that has an outsized influence on decisions you make in the here and now. The show begins with an experiment that reveals how difficult it is to avoid the temptation of junk food—and how the power of that temptation is affected by time. Then, you’ll hear the story of a man who spent his childhood in relative poverty but found himself wealthy beyond his dreams by the time he was a teenager. This unexpected windfall changed his life in an instant. But it ultimately became a painful lesson on the dangers of living only for the present. You’ll hear from two heavyweights in the world of psychology and economics. Richard Thaler is a Nobel Prize–winning economist and co-author of Nudge: Improving Decisions About Health, Wealth, and Happiness. Thaler tells the story of how he came to discover and research this bias. Renowned psychologist Angela Duckworth explores some of the ways you can combat temptation and make better decisions for your future. She’s the author of the bestseller Grit: The Power of Passion and Perseverance. Finally, Katy Milkman offers additional tips to help you avoid the pitfalls of this bias: with behavioral tools such as temptation bundling and commitment devices. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. (0000-0000)

0

0

0

#4

How Tomorrow Feels Today

May 14, 2018 • 33m

Imagine you’ve just been through a major life event: The birth of a child. A major award. The loss of a job. A divorce. Now picture yourself 10 years in the future and try to imagine how that event affected your overall well-being. Research shows that—more often than not—your predictions will miss the mark. Why is that? On this episode of Choiceology with Dan Heath, we examine a bias that influences the way you believe you’ll feel in the future. The show begins with a quick survey based on the work of psychologists Daniel Gilbert and Timothy Wilson. The survey demonstrates—in a surprising way—our tendency to misjudge the importance of future events. From there we raise the stakes with two very dramatic stories from the opposite ends of human emotional experience. Diann Roffe describes the elation she felt after a stunning athletic achievement, and Scott Fedor shares the harrowing story of a life-altering injury. And while these events were totally different, you may be surprised to learn how they affected Scott and Diann’s lives over the long run. Boston University professor Carey Morewedge explains how this bias works and offers suggestions to help you re-examine your greatest hopes and fears. Find out how to reduce the influence of this bias in your financial decisions in an article called “Can You Really Know Your Future Self?” Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. (0219-9PLX)

0

0

0

#5

Swimming with Sharks

April 09, 2018 • 29m

Sometimes it seems as if danger lurks around every corner. News reports of events like plane crashes and shark attacks make grave risk to life and limb feel real and imminent. And while there’s no doubt that risk is a part of life, are these the types of events we should really be concerned about? On this episode of Choiceology with Dan Heath, we examine a bias that affects the way you perceive both risk and reward. We trace how this bias may have helped your ancestors avoid lions lurking in the tall grass—but may also negatively affect your decisions around things like vacations and lotteries. The episode begins with Ranie Pearce and her harrowing tale of adventure in the middle of the Pacific Ocean. Ranie Pearce is and accomplished open water swimmer and a member of the South End Rowing Club You’ll hear an experiment involving sharks—and something even more dangerous—at the Vancouver Aquarium in British Columbia. And Dan Gardner explains the psychological roots of our common misperceptions about risk and reward. He is the author of Risk: The Science and Politics of Fear You can find out how to reduce the influence of this bias in your financial decisions in an article called Easy Access: How the Availability Heuristic Hurts Our Judgments. Choiceology is an original podcast from Charles Schwab. For more on the series go to schwab.com/podcast If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. (0418-8JKZ)

0

0

0

#6

Boxed In: With Guests Sophie Morgan, Modupe Akinola & Dolly Chugh

May 13, 2019 • 33m

Assuming you live in the northern hemisphere, which would you say is colder: a day in March or a Day in April? On average, of course, March is colder than April, but there’s probably not a big difference in temperature between March 31 and April 1. If you’re like most people, though, you put March days in the colder March category and April days in the warmer April category. It’s a useful shortcut, but it doesn’t always give you the best information about the temperature on individual days. This tendency to quickly categorize time, objects and people helps us to simplify a complex world, but it can also lead to important errors. In this episode of Choiceology with Katy Milkman, we look at the ways our snap judgments work for us and against us. First, Katy brings you a profile of Sophie Morgan, tracing her career path from relative unknown to reality TV model to lead presenter at one of the largest sporting events in the world. And you’ll find out what makes Sophie unique in her field. Next, we hit the street with a quick questionnaire to see how people make judgments when faced with uncertainty or incomplete information. You can try these questions yourself, before you listen: Question 1: William is an opera fan who enjoys touring art museums when he goes on vacation. He enjoys playing chess with his friends. Which is more likely? A: William is a professional violinist for a major symphony orchestra. B: William is a farmer. Question 2: Amy is 29 years old. She’s single, outspoken and very bright. As a student, she majored in English literature and was deeply interested in theater. Which is more probable? A: Amy is a bank teller. B: Amy is a bank teller and writes an arts review for her local newspaper. After revealing the answers to our questionnaire, Katy is joined by Modupe Akinola, of Columbia Business School and Dolly Chugh of New York University’s Stern School of Business to explore the functions and flaws of these types of judgments and the mental architecture behind them. Dolly Chugh is the author of The Person You Mean to Be: How Good People Fight Bias. Finally, Katy gives you some simple strategies to counteract some of the negative impacts of snap judgments and implicit attitudes. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. (0519-9AKG)

0

0

0

#7

Creatures of Habit: With Guests Wendy Wood, Angela Duckworth & Stephan Kesting

November 18, 2019

Benjamin Franklin is one of the most revered figures in American history. He accomplished more in one lifetime--as a publisher, scientist, and politician--than most of us dream of. One argument for his success is that he was a creature of habit. His grueling daily schedule focused on repeating several habits of self-improvement. He hoped to achieve a perfect version of himself by automating certain positive behaviors. Whether or not he always stuck to his daily schedule of self-improvement is debatable, but his intuition about the importance of habit was right on the money.In this episode of Choiceology with Katy Milkman, we look at the power of habit in shaping our behavior--for the better and for the worse.We begin with firefighter Stephan Kesting. Stephan takes us through several of the drills that firefighters repeat over and over again in order to internalize certain behaviors. These behaviors can save lives in disaster scenarios. Stephan’s preparedness was put to the test early in his career when he and his team were called to a massive fire. You’ll hear how habits developed through intense training made all the difference in a life-or-death rescue operation.Stephan Kesting is an officer in the Delta Fire Department in Delta, British Columbia. He is also a black belt instructor in Brazilian jiu-jitsu.To look at the science behind habit, Katy invited two top scholars to share their insights into this phenomenon.First, Wendy Wood explains why we have habits, how they’re formed, and the reasons they’re often difficult to change. Wendy Wood is the Provost Professor of Psychology and Business at Dornsife College at the University of Southern California. She’s also the author of the new book Good Habits, Bad Habits: The Science of Making Positive Changes That Stick.Next, you’ll hear from Angela Duckworth on how habits relate to self-control and persistence. She offers strategies that leverage the power of habit to help mitigate self-control challenges. Angela Duckworth is the Christopher H. Browne Distinguished Professor of Psychology at the University of Pennsylvania and the author of Grit: The Power of Passion and Perseverance.Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ✪✪✪✪✪ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.(1119-99ZW)

0

0

0

#8

So Close to the Prize: With Guests Oleg Urminsky & Brian Zinn

April 13, 2020 • 37m

If you’ve ever signed up for a frequent flyer program, chances are good that you were awarded a certain number of bonus points to start. Those bonus points feel like a nice little gift, but they also serve another purpose: to increase your motivation to participate in the program.In this episode of Choiceology with Katy Milkman, we explore how your proximity to a goal can affect the way you behave.You’ll hear the fascinating story of Brian Zinn and his decade-spanning quest to unravel an elaborate riddle. When Brian was a college student, he stumbled upon a book called The Secret: A Treasure Hunt. In it were 12 cryptic puzzles—arcane verses and mysterious images that, when paired and solved, would point readers to 12 treasures buried in undisclosed locations around the United States.The treasure hunt was a harmless pastime during Brian’s college days, but when he rediscovered the book years later, it became something of an obsession. You’ll learn about his escalating adventures attempting to locate one of the book’s hidden treasures. Since the publication of The Secret nearly 40 years ago, only three of the 12 treasures have ever been found.Next, Oleg Urminsky joins Katy to reveal the behavioral mechanisms that drive us to increase our efforts as we approach a goal, or perceive that we’re approaching a goal. Urminsky’s research led him to demonstrate surprising shifts in behavior using a simple coffee card loyalty program. Oleg Urminsky is a professor of marketing at the University of Chicago Booth School of Business. You can read more about his research in the 2006 paper “The Goal-Gradient Hypothesis Resurrected.” Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.(0420-08H4)

0

0

0

#9

A Spoonful of Sugar: With Guests Ayelet Fishbach, Dan Ariely, Lynne Gauthier & Nancy Strahl

May 25, 2020 • 43m

“In every job that must be done, there is an element of fun. You find the fun, and snap, the job’s a game!” So says Julie Andrews’ character in the Disney film Mary Poppins before she launches into the famous musical number “A Spoonful of Sugar.” In this episode of Choiceology with Katy Milkman, we look at the science behind the intuitive strategy of making difficult or boring things easier by adding that “element of fun.” But while Mary Poppins was focused on making the tedious task of cleaning a room a bit more enjoyable, you’ll see that this approach isn’t limited to housework.You’ll hear Nancy Stahl’s dramatic story of a life-threatening medical event. Her prognosis was grim, but thanks to grit, determination, and some pioneering work in gamifying rehabilitation by Professor Lynne Gauthier, Nancy made a remarkable recovery.Lynne Gauthier is an associate professor at the University of Massachusetts, Lowell, and director of the Neurorecovery and Brain Imaging Laboratory. Next, Dan Ariely recounts an incredibly difficult long-term treatment that he was able to endure and complete, thanks to a strategy known as temptation bundling (a term coined by Katy Milkman through her research into the phenomenon).Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, and the author of several bestselling books, including Predictably Irrational.Finally, Ayelet Fishbach joins Katy to discuss research into myriad ways that adding enjoyable elements to difficult or tedious tasks can improve outcomes in everything from math education to exercise to job satisfaction. Ayelet Fishbach is the Jeffrey Breakenridge Keller Professor of Behavioral Science and Marketing at the University of Chicago Booth School of Business.Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.(0520-0DAP)

0

0

0

#11

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

September 09, 2019 • 33m

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.Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.(0919-9AR2)

0

0

0

#12

Everybody’s Doing It: With Guests Tyler Hamilton & Todd Rogers

November 26, 2018 • 28m

You’re an independent-minded person. You make choices for yourself based on the best information available. You own your decisions, right or wrong. Right? No so fast. You are, in fact, a social animal. You take many visible and invisible cues on how to behave from the people around you—family, co-workers, friends, social media, even the folks in the elevator or on the bus. So your decisions and behaviors aren’t always as independent as you might think. In this episode of Choiceology with Katy Milkman, we look at a phenomenon that may have you running with the crowd, even when it’s not in your best interest. The episode begins with an experiment. A benign but peculiar behavior appears during an otherwise normal orchestra rehearsal. It starts with a few members but spreads rapidly through the orchestra. What’s causing this behavior, and why is it so contagious? From there we move to a much more consequential behavior in the world of professional cycling. We examine a high-stakes decision by cyclist Tyler Hamilton in his quest for Tour de France glory and Olympic gold. It’s a story of peer pressure, deep secrets, subterfuge and, ultimately, redemption. Behavioral scientist Todd Rogers of the Harvard Kennedy School explores the myriad ways we’re influenced by those around us. He speaks with Katy about some of the ways that businesses and institutions can harness our social nature for the greater good. Finally, Katy Milkman looks back at some of the early research on how individuals can be manipulated by social groups. She offers tips to help you avoid falling victim to mob mentality. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. (1118-8TPU)

0

0

0

#13

Best-Laid Plans: With Guests Ken Bowersox, Robert Godwin & Bradley Staats

May 27, 2019 • 37m

If you’ve ever been through a home renovation, you know that it often takes more time or more money (or both!) than the contractor’s original estimate. But why is that? Experienced contractors renovate homes all the time. And yet they still regularly face delays and cost overruns. In this episode of Choiceology with Katy Milkman, we explore a tendency people have to be overly optimistic about what they can accomplish in a set period of time—starting with a story of the phenomenon playing out on a massive scale. The International Space Station (ISS) is a marvel of human ingenuity. It’s the largest manned object ever put into space. It orbits the earth every 90 minutes. It contains 8 miles of wire and is the third brightest object in the night sky. At a cost of well over $100 billion, it is also the most expensive object ever built. At the beginning of the project, however, it was expected to cost only a small fraction of that amount. Robert Godwin has written extensively about the ISS. He explains the tumultuous history of the project, which started as a relatively modest American plan to succeed the Skylab station and eventually becoming a massive international collaboration hampered by political and technical challenges. Godwin is the co-author of the book Outpost in Orbit: A Pictorial & Verbal History of the International Space Station. Astronaut Ken Bowersox was aboard the ISS during one of the most difficult periods of the project. He recounts the harrowing details of an emergency return trip to Earth after tragedy struck the American shuttle program. In hindsight, it’s easy to see how a project that involves international cooperation and cutting-edge technology could run into delays and cost overruns. However, this tendency toward over-optimism manifests itself even in simple projects back on Earth. As an experiment, we had several volunteers sit down, separately, with a child’s engineering toy. We asked them to estimate how long it would take to build a simple machine, using the included step-by-step instructions. The difference between their estimates and reality is telling. And this is a toy designed for 8-year-olds! Bradley Staats of the University of North Carolina’s Kenan-Flagler Business School joins Katy to discuss the mechanics of this bias and to give examples of a number of different domains where this tendency can cause problems. He also introduces some simple strategies to help reduce forecasting errors. Finally, Katy expands on some of those strategies in order to help you make better estimates around the time, effort and expense required to meet your goals. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. (0519-9AY5)

0

0

0

#15

Out of Focus: With Guests Dolly Chugh, Max Bazerman & Mark Pendergrast

March 18, 2019 • 40m

If you’ve ever watched a TV crime drama, you’ve probably heard that eyewitness testimony is notoriously unreliable. A person commits a crime literally right in front of someone, but the witness can’t identify key characteristics of the perpetrator—or worse, gets the details wrong and implicates an innocent person. Why does this happen? In this episode of Choiceology with Katy Milkman, we look at the limitations of attention and perception. The episode begins with the description of a surprising experiment involving two teams passing basketballs. You can try the experiment here, even if you’ve already listened to the episode. Katy follows with the story of one of the most famous marketing blunders of all time: the introduction of New Coke by the Coca Cola Company. Mark Pendergrast, author of For God, Country & Coca Cola, recounts the history of the brand and takes you inside the company to explain how their executives came to a disastrous decision. Robert Teszka then demonstrates how magicians harness the limitations of an audience’s attention in order to surprise and entertain. Next, we hear from Dolly Chugh of New York University’s Stern School of Business and Max Bazerman of the Harvard Business School. They explain how this tendency to miss important information is systematic and predictable, and how it can negatively affect decisions in business and life. Dolly Chugh is the author of The Person You Mean to Be: How Good People Fight Bias. Max Bazerman is the author of The Power of Noticing: What the Best Leaders See. Finally, Katy offers simple strategies to help you expand your awareness and make better-informed decisions. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. (0319-92FV)

0

0

0

#16

The Simple Choice: With Guests Shlomo Benartzi & Eric Sink

March 30, 2020 • 36m

We are inundated with decisions in the modern world. What to wear, what to buy, what to watch, where to work, what to eat, who to call, where to live, what to study, when to exercise, how much to save, etc. And every decision, no matter how small, requires mental effort. But when a particular option is suggested to us ahead of time, the cognitive load is much smaller.In this episode of Choiceology with Katy Milkman, we explore the subtle power of default options.We begin with a simple experiment, offering free hot chocolate to random college students. A small shift in the way we present the option of a whipped-cream topping leads to a measurable change in the students’ preferences. Next up, a rather more consequential example. It’s the story of the web browser wars in the mid-1990s. You’ll get an insider’s perspective on the epic battle between Microsoft’s Internet Explorer browser, and Netscape Communications’ Navigator browser. Netscape had a substantial head start in the browser space, pioneering many of the features we take for granted in web browsing today. But Microsoft employed a simple strategy to grow their user base for Internet Explorer and quickly gained market share. The end result of this strategy was a seismic shift in the industry. You’ll hear from Eric Sink, a lead developer on the Internet Explorer project.To examine the science behind defaults, Katy invited behavioral economist Shlomo Benartzi to join her to discuss the ways that choice architecture and defaults can have a major impact on our behavior, particularly around retirement savings programs.Shlomo Benartzi is a Professor of Accounting at the UCLA Anderson School of Management and a Distinguished Senior Fellow at the University of Pennsylvania’s Behavior Change for Good Initiative. He is a senior academic advisor to the Voya Behavioral Finance Institute. He is also the author of the book Save More Tomorrow: Practical Behavioral Science Solutions to Improve 401(k) Plans.Finally, Katy offers practical advice on how to leverage defaults to reach your goals—and how to avoid the defaults that might trick you into less desirable options.Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcastIf you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Shlomo Benartzi and Voya Financial are not affiliated with Schwab and any mentions should not be construed as a recommendation, endorsement of, or sponsorship by Schwab.(0320-0FL1)

0

0

0

#17

No Harm, No Foul? With Guests Francesca Gino & Dr. Byers “Bud” Shaw

April 15, 2019 • 36m

It makes some intuitive sense to judge a decision based on its results. But is it always true that a good decision leads to a good outcome, and vice versa? In this episode of Choiceology with Katy Milkman, we look at a bias that can lead to errors in the way we judge our decision-making processes. Katy brings you a story about the challenging early days of organ transplant surgery. Dr. Byers “Bud” Shaw arrived in Pittsburgh in 1981 to work under transplant pioneer Dr. Thomas Starzl. At the time, liver transplants were often unsuccessful, and some of the hospital staff were even petitioning to ban the procedure outright. You’ll hear about one particular operation that had Dr. Shaw questioning the viability of liver transplants and his ability as a surgeon. His decision to carry on would have major implications for medical progress. Bud Shaw is the author of Last Night in the OR: A Transplant Surgeon’s Odyssey. Next, we place you courtside at a basketball game for a quick experiment. We run two plays that are identical in strategy, but you’ll hear them be judged very differently by the players who execute them. Then, Francesca Gino of Harvard Business School joins Katy to discuss the ways that people tend to overvalue the outcome of a decision and undervalue the process that led to the decision. She demonstrates how this bias can lead to flawed and even unethical decision making. Francesca Gino is the author of Rebel Talent: Why It Pays to Break the Rules at Work and in Life. Finally, Katy provides insight on how to better evaluate both the process and the outcome of your decisions, so that you can make better choices in the future. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts. Important Disclosures: All expressions of opinion are subject to change without notice in reaction to shifting market conditions. The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. (0419-9WFE)

0

0

0

#18

Bidder Beware: With Guests Max Bazerman & Glenye Cain Oakford

May 11, 2020 • 34m

Have you ever bid in a competitive auction—say, on eBay—and won the item, only to see a similar item for sale elsewhere at a lower price? If so, you may have fallen prey to the winner’s curse.In this episode of Choiceology with Katy Milkman, we look at bias that can lead people to overpay in auctions and other types of negotiations.We begin with the story of Havre de Grace. This prize filly had an exceptionally successful career as a racehorse before being auctioned as a broodmare. Expectations were high for the sale because Havre de Grace had such a strong thoroughbred pedigree. But the way the auction proceeded surprised everyone in the room.Glenye Cain Oakford was at the Fasig-Tipton November Mixed Sale and paints a vivid picture of a dramatic bidding process. She is an award-winning journalist, writer, and videographer based in Lexington, Kentucky. She was the senior bloodstock correspondent at the Daily Racing Form at the time of the auctionSpecial thanks to Fasig-Tipton for use of the audio clips from the Havre de Grace auction.Max Bazerman has contributed important research to the study of the winner’s curse. He joins Katy to discuss the ways in which this phenomenon can affect purchasing decisions around everything from jewelry to oil leases—and how the bias can diminish your ability to negotiate successfully. Max Bazerman is the Jesse Isidor Straus Professor of Business at the Harvard Business School and the Harvard Kennedy School and the author of many books, including the upcoming book Better, Not Perfect: The Realist’s Guide to Maximum Sustainable Goodness, which will be released later this year by Harper Collins. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.Important Disclosures:All expressions of opinion are subject to change without notice in reaction to shifting market conditions.The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.(0520-0BPD)

0

0

0

#20

Summit Fever

March 12, 2018 • 30m

Imagine that you’ve put in effort toward a goal, but things haven’t quite worked out the way you hoped. Maybe your goal was more expensive than you expected; maybe it’s taking longer to reach than you thought. So the question is, do you double down and continue to work toward that increasingly difficult goal, or do you move on to something new? Do you fish or cut bait? On this episode of Choiceology with Dan Heath, we look at how past effort, time or expense can influence the way we make decisions moving forward—even when they shouldn’t. The episode begins on an auction house floor but quickly climbs to the top of the highest peak in the world. Along the way, you’ll see how common is the lure to continue no matter what, and how it affects all kinds of decisions, big and small. Professor Michael Roberto explains how to identify this bias in your day-to-day life. You can read his paper on how it may have influenced some life-and-death decisions at the top of Mount Everest. Lou Kasischke’s book on his experience on the 1996 Mount Everest expedition is called After the Wind. You’ll also find out how to fight back against the influence of this trap in a story about Intel CEO Andy Grove—one of the most successful business leaders of the 20th century. And to learn about making investment decisions with an eye toward the future, check out our bonus article “Don’t Look Back.” Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast. If you enjoy the show, please leave a ⭐️⭐️⭐️⭐️⭐️ rating or review on Apple Podcasts. (0318-8VJ8)

0

0

0