Sunday, April 16, 2006

I'm O.K., You're Biased

I'm O.K., You're Biased - New York Times: "VERIZON had a pretty bad year in 2005, but its chief executive did fine. Although Verizon's earnings dropped by more than 5 percent and its stock fell by more than a quarter, he received a 48 percent increase in salary and compensation. This handsome payout was based on the recommendation of an independent consulting firm that relied on Verizon (and the chief executive's good will) for much of its revenue. When asked about this conflict of interest, the consulting firm explained that it had "strict policies in place to ensure the independence and objectivity of all our consultants."

Please stop laughing.

Doctors scoff at the notion that gifts from a pharmaceutical company could motivate them to prescribe that company's drugs, and Supreme Court justices are confident that their legal opinions are not influenced by their financial stake in a defendant's business, or by their child's employment at a petitioner's firm. Vice President Dick Cheney is famously contemptuous of those who suggest that his former company received special consideration for government contracts.

Voters, citizens, patients and taxpayers can barely keep a straight face. They know that consultants and judges are human beings who are pulled by loyalties and pushed by animosities, and that drug reps and lobbyists are human beings who wouldn't be generous if generosity didn't pay dividends. Most people have been around people long enough to have a pretty good idea of what drives their decisions, and when decision-makers deny what seems obvious to the rest of us, the rest of us get miffed. Sell our democracy to the highest bidder, but don't insult our intelligence.

Much of what happens in the brain is not evident to the brain itself, and thus people are better at playing these sorts of tricks on themselves than at catching themselves in the act. People realize that humans deceive themselves, of course, but they don't seem to realize that they too are human.

Behavioral economics bolsters psychology's case. When subjects play laboratory games that allow them to walk away with cash, self-interest dictates that they should get all the cash they can carry. But scores of experiments show that subjects are willing to forgo cash in order to play nice.

In short, doctors, judges, consultants and vice presidents strive for truth more often than we realize, and miss that mark more often than they realize. Because the brain cannot see itself fooling itself, the only reliable method for avoiding bias is to avoid the situations that produce it.

When doctors refuse to accept gifts from those who supply drugs to their patients, when justices refuse to hear cases involving those with whom they share familial ties and when chief executives refuse to let their compensation be determined by those beholden to them, then everyone sleeps well.

Until then, behavioral scientists have plenty to study."

Daniel Gilbert, a professor of psychology at Harvard, is the author of the forthcoming "Stumbling on Happiness."

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