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Cognitive Biases

Biology vs. Rationality

The concept explains how memory's focus on peaks and ends, neglecting duration, leads to decisions that do not maximize experienced utility, challenging the assumption of rational preferences.

THE IDEA

BIOLOGY VS. RATIONALITY

The most useful idea in the injections puzzle that preoccupied me years ago was that the experienced utility of a series of equally painful injections can be measured, by simply counting the injections. If all injections are equally aversive, then 20 of them are twice as bad as 10, and a reduction from 20 to 18 and a reduction from 6 to 4 are equally valuable. If the decision utility does not correspond to the experienced utility, then something is wrong with the decision. The same logic played out in the cold-hand experiment: an episode of pain that lasts 90 seconds is worse than the first 60 seconds of that episode. If people willingly choose to endure the longer episode, something is wrong with their decision. In my early puzzle, the discrepancy between the decision and the experience originated from diminishing sensitivity: the difference between 18 and 20 is less impressive, and appears to be worth less, than the difference between 6 and 4 injections. In the cold-hand experiment, the error reflects two principles of memory: duration neglect and the peak-end rule. The mechanisms are different but the outcome is the same: a decision that is not correctly attuned to the experience.

Decisions that do not produce the best possible experience and erroneous forecasts of future feelings—both are bad news for believers in the rationality of choice. The cold-hand study showed that we cannot fully trust our preferences to reflect our interests, even if they are based on personal experience, and even if the memory of that experience was laid down within the last quarter of an hour! Tastes and decisions are shaped by memories, and the memories can be wrong. The evidence presents a profound challenge to the idea that humans have consistent preferences and know how to maximize them, a cornerstone of the rational-agent model. An inconsistency is built into the design of our minds. We have strong preferences about the duration of our experiences of pain and pleasure. We want pain to be brief and pleasure to last. But our memory, a function of System 1, has evolved to represent the most intense moment of an episode of pain or pleasure (the peak) and the feelings when the episode was at its end. A memory that neglects duration will not serve our preference for long pleasure and short pains.

When to use it

  • Designing user interfaces and experiences: Optimizing the peak and end of an interaction can shape users' overall satisfaction and memory, even if the duration is longer.

  • Medical decision-making: Patients' memories of procedures influence their willingness to undergo future treatments. Understanding that memory is based on peak and end rather than duration can help in framing and managing patient expectations.

  • Personal productivity: When planning tasks or projects, being aware of duration neglect can help in structuring work to end on a high note, improving memory of the experience and motivation for future tasks.

  • Public policy: In evaluating policies that affect people's well-being (e.g., waiting times, pain management), policymakers should consider not just the total duration but the peak and end of experiences.

FROM THEORY TO EVERYDAY LIFE

In practice

01

Injections Puzzle

In a hypothetical scenario, a person receives a series of equally painful injections. The experienced utility is proportional to the number of injections: 20 injections are twice as bad as 10. However, due to diminishing sensitivity, the difference between 18 and 20 injections appears smaller than the difference between 6 and 4, leading to decisions that do not align with actual experience.

02

Cold-Hand Experiment

Subjects experienced one episode where their hand was immersed in painfully cold water for 60 seconds, and another where the immersion lasted 90 seconds but the temperature was slightly raised for the last 30 seconds (providing some relief). Despite the longer episode being objectively more painful overall, subjects often chose to repeat the longer episode because its ending was less painful, illustrating the peak-end rule and duration neglect.

✳

A MOMENT TO REFLECT

Put it to work.

  1. Recall a memorable event that involved a period of discomfort or pleasure. How does the peak-end rule apply to your memory of that event? Did the duration matter as much as the most intense moment and the ending?

  2. Consider a decision you made that seemed irrational in hindsight, such as choosing a longer, more painful procedure over a shorter one because the ending was better. How might this concept explain that choice?

  3. Think about how businesses design customer experiences. Can you identify examples where they focus on creating a good peak and end, perhaps at the expense of duration?

CONTINUE THE CONVERSATION

Source texts

  • Thinking, Fast and Slow (Daniel Kahneman)
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