Video: Relativity and Immediate Gratification

Excerpt (via Monday Dots)

Most people believe that the inherent need to satisfy immediate gratification stems from greed, a lack of self control, or the ability to sacrifice a smaller short term gain for a greater long term gain. While I agree, I also think that some of our short sighted decisions stem from the natural way we compare alternatives in the decision making process.  In fact I think the real cause of immediate gratification can be found in this picture from Dan Ariely’s “Predictably Irrational”. Which of the darker dots is larger? In this illusion it looks as though the dot on the left is larger. If we do a quick measure, we can easily see that the dots are in fact  the same size. Even with this newly minted knowledge if we loose the ruler, our eyes go back to seeing the dot on the left as being larger.

The problem is relativity. As Ariely states, “our natural tendency is to compare things that are easily comparable– and avoid comparing things are not easily compared.” So how does this apply to immediate gratification? Just as our eyes can be tricked by visual illusions, our mind can be tricked by cognitive illusions. A great example of a cognitive illusion is my slightly modified example  from “Predictably Irrational”.

Watch The Video Below or Click Here For our Subscribers

About Miguel Barbosa

I run this site.

30. March 2010 by Miguel Barbosa
Categories: Behavioral Economics, Curated Readings | Leave a comment

Leave a Reply

Required fields are marked *