"I want to close a loop, which I'm calling "The Irony of Poverty." On the one hand, lack of slack tells us the poor must make higher quality decisions because they don't have slack to help buffer them with things. But even though they have to supply higher quality decisions, they're in a worse position to supply them because they're depleted. That is the ultimate irony of poverty. You're getting cut twice. You are in an environment where the decisions have to be better, but you're in an environment that by the very nature of that makes it harder for you apply better decisions."
"There's new technology emerging from behavioral economics and we are just starting to make use of that. I thought the input of psychology into economics was finished but clearly it's not!"
Let's put aside poverty alleviation for a second, and let's ask, "Is there something intrinsic to poverty that has value and that is worth studying in and of itself?" One of the reasons that is the case is that, purely aside from magic bullets, we need to understand are there unifying principles under conditions of scarcity that can help us understand behavior and to craft intervention. If we feel that conditions of scarcity evoke certain psychology, then that, not to mention pure scientific interest, will affect a vast majority of interventions. It's an important and old question.—Sendhil Mullainathan
At a minimum, what we're saying is that in every market where there is now required written disclosure, you have to give the same information electronically and we think intelligently how best to do that. In a sentence that's the nature of the proposal.—Richard Thaler
If you remember one thing from this session, let it be this one: There is no way of avoiding meddling. People sometimes have the confused idea that we are pro meddling. That is a ridiculous notion. It's impossible not to meddle. Given that we can't avoid meddling, let's meddle in a good way. —Richard Thaler
"And this is the other thing about the size of the cognitive surplus we're talking about. It's so large that even a small change could have huge ramifications. Let's say that everything stays 99 percent the same, that people watch 99 percent as much television as they used to, but 1 percent of that is carved out for producing and for sharing. The Internet-connected population watches roughly a trillion hours of TV a year. That's about five times the size of the annual U.S. consumption. One per cent of that is 98 Wikipedia projects per year worth of participation."
I think that's going to be a big deal. Don't you?"
"What I would like to argue for is to stop using the idea of big data as this big rubric to cover all these practices within businesses, like Google, that don't really have the structure to close the empirical loop to determine what part of their success is based on scientifically replicable and testable analytic results versus science, where that's really all we care about. Science is never, in my opinion, going to just get automatic, and it's very rarely easy."
"What motivates people? What is it that people want to figure out, and when do they decide, "Hey, I've got to go find some information," and how can we get them to do that more, to find the information, and then use it in their life?"
"Computers and networks finally offer us the ability to write. And we do write with them. Everyone is a blogger, now. Citizen bloggers and YouTubers who believe we have now embraced a new "personal" democracy. Personal, because we can sit safely at home with our laptops and type our way to freedom.
But writing is not the capability being offered us by these tools at all. The capability is programming—which almost none of us really know how to do. We simply use the programs that have been made for us, and enter our blog text in the appropriate box on the screen. Nothing against the strides made by citizen bloggers and journalists, but big deal. Let them eat blog."
"These are exhibitions which are not material, but which are more virtual, virtual in the sense of them always being able to be reactualized. They can be revisited and reactualized and updated, and they are also not related to a place. The exhibition can go to where the viewer is. Anybody in the world can download these formulas and pin them on the wall, or they can do their own and trigger their own formulas. We are in the very early days of understanding how the Internet can be used for exhibitions."