ACTIONABLE ADVICE FOR FINANCIAL ADVISORS: Newsletters and Commentaries Focused on Investment Strategy

Follow us on
 Facebook  Twitter  LinkedIn  RSS Feed

    Last 14 days

Most Popular Articles


Most Popular Commentaries

    Last 12 Months

Most Popular Articles


Most Popular Commentaries



More by the Same Author

General Advisory
   Behavioral Finance

Social Power and Morality
Predictably Irrational
By Dan Ariely
June 20, 2012


Display as PDF     Print    Email Article    Remind Me Later

Bookmark and Share

The following is taken from the graduation speech of Michael Lewis at Princeton in 2012. In it, he discusses an experiment that explores the relationship between power and morality.

“…… a pair of researchers in the Cal psychology department staged an experiment. They began by grabbing students, as lab rats. Then they broke the students into teams, segregated by sex. Three men, or three women, per team. Then they put these teams of three into a room, and arbitrarily assigned one of the three to act as leader. Then they gave them some complicated moral problem to solve: say what should be done about academic cheating, or how to regulate drinking on campus.

Exactly 30 minutes into the problem-solving the researchers interrupted each group. They entered the room bearing a plate of cookies. Four cookies. The team consisted of three people, but there were these four cookies. Every team member obviously got one cookie, but that left a fourth cookie, just sitting there. It should have been awkward. But it wasn’t. With incredible consistency the person arbitrarily appointed leader of the group grabbed the fourth cookie, and ate it. Not only ate it, but ate it with gusto: lips smacking, mouth open, drool at the corners of their mouths. In the end all that was left of the extra cookie were crumbs on the leader’s shirt.

This leader had performed no special task. He had no special virtue. He’d been chosen at random, 30 minutes earlier. His status was nothing but luck. But it still left him with the sense that the cookie should be his.”

—–

We’ve probably all heard the saying “absolute power corrupts absolutely.” Well, there is a great deal of research concerning the link between social power and morality, and most of it suggests that absolute power is not required to change people’s morals; sadly it tends to show that more power leads to less care for others, and less moral behavior.

 

(c) Predictably Irrational

www.predictablyirrational.com


 

Display as PDF     Print    Email Article    Remind Me Later
 
Remember, if you have a question or comment, send it to .
Website by the Boston Web Company