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Notes on video lecture:
Conflicts of Interest
Choose from these words to fill the blanks below:
expected, gray, noticed, before, biased, cheating, referee, closest, sympathy, drunk, disappointed, overestimated, fun, discount, suspicious, mortgage, tattoo, exaggeration, paid, burned, friends, disclosed, strict, complex, bankers, white, lobbies, treatment, same, mean, sunshine, sponsoring, symmetrical, sports, understand, MRI, art, every, politicians, third, money, useful
the fundamental issue of                  is conflicts of interest
when we are          or encouraged to do things that are slightly different than the truth, we think and act with a bias
             are a good example
if you support team A and the                makes a call for team B, then you find his call to be unfair
this may even make the game more       
although we try to minimize it, we have conflicts of interest in            area of life
financial advisers and               
how to reduce conflicts of interest
                 policies and disclosure
conflicts of interest should be                   
so people will know how to                  biased opinion
two people: adviser, advisee
adviser sees a jar with            from close up
advisee sees jar from far away
they have to guess, the                the adivsee was, the more money they got paid
added conflict of interest
adviser got paid more if the advisee                            the amount
adviser recommended the higher number
added sunshine policy
I get paid more money if you guess too high
which force would be higher:                          or discount
results: adviser exaggerated more, advisee discounted not enough
advisee generally got more money
conflict of interest
change people's views
causes them to be              in dishonest ways
sunshine policies and disclosure don't seem to fix the problem
Dan's stories about conflict of interest
example #1: doctor with conflict of interest
Dan was              and spent many years in the hospital
after many years, doctor contacted him because he had new                   
has whiskers, black dots, only on left side of face
his solution was to              little black dots to right side of face
asked to see pictures of others who had treatment
what happens when I grow older and my hair is           
we can laser it out
Dan became                      and said he did not want to do it
gave him guilt trip
don't you want to be                       
do you get some distorted pleasure from looking different
do women feel sorry for you and give you                  sex
had been his doctor for three years
turned out he was looking for a            patient for an academic paper
Dan was seen as an ideal patient
doctor thought that what was in his best interest was also in Dan's
when we are so engrossed in what's good for us, we are more comfortable in demanding it from other people
without seeing the conflicts of interest
example #2: research with conflict of interest
Dan was doing experiments at Harvard
allowed him to use lab from time to time
ran experiment
hoped that group A would have high         , and group B would have low mean
they basically got those                  results
but one person in group A who had the lowest possible result you could imagine, and he changed the average mean
25 years older than all others
remembered that one person who was old came to the experiment           
people just come from the street
they took him out, the results looked better
then they thought, what if the drunk individual had been in the other group
he wouldn't have been               
and if he would have been noticed, we probably would have kept him in since he would have helped the results look as expected
now they operate by              rules
its ok not to have drunk people in the study, but you can only specific this              the study and not afterwards
especially after looking at the data
the same with people who don't                      the instructions
conflicts of interest operate within a          zone
we will naturally make decisions that are good for us financially or good us or our                in other ways
the worst part is if we don't notice it ourselves
it changes our view
another experiment
you come to a lab
we show you        work
some from Lone Wolf
some from Blue Moon
you are told that Lone Wolf is giving you $100 to pay for your participation in this study
put you in        scanner and show you images
have to say how much you like them
people like more the art that came from their sponsoring galleries
you could say that these participants are just being nice to someone who gave them money
the pleasure centers in the brain as measured by teh MRI reacted more strongly to the pictures by the                      gallery
the reaction grew in experiments as the gallery gave more money
this is what is happening in instances of conflict of interest
we feel indebted to something or somebody, even our own desire for money
it changes dramatically how we operated and view information
if you understand conflicts of interest, you will be very                          with what we have done since the financial crisis
1. money
give someone $5 million dollars a year to view                 -backed securities as a better product
2. steps removed
very                loans, hard to evaluate
3. others agree
other investors around you was looking past information in the          way
4. creativity
the more creative you are, the more you can play with gray zones
if you think that the cause of this problem are conflicts of interest, then we really haven't done anything              to the financial industry to counter these forces
it is similar for the health industry and government because of               
The Simple Model of Dishonesty
Why People Cheat and Its Economic Impact
Conflicts of Interest
What Motivates Us to Do Work
The Value of Meaning in Work
How Effort Leads to Fondness of the End Result