Bounded Ethicality as a Psychological Barrier to Recognizing.ppt

Conflict of Interest  Other examples: 1) Trusting Audited Financial Statements 2) Trusting Ratings from Security Rating Agencies 3) Investment Advisers 4) Trusting Your Doctor to Give You the Best Possible Medical Advice ? * The Misspecification of the Conflict of Interest Problem Intentional Corruption Vs. Intentional and Unconscious Corruption * Conflict of Interest Upton Sinclair: “It is difficult to get a man to understand something when his salary depends on his not understanding it. And, I would add: integrity is not a good enough solution. * * * Ulric Neisser (1979) asked participants to observe a video of two visually superimposed groups of players passing basketballs. In the video, one group of players wears white shirts and the other group wears dark shirts. Study participants were instructed to count the number of passes between members of one of the two groups. The task is moderately difficult, and study participants had to give it their full attention. Only 21% of Neisser’s study participants reported seeing a woman who clearly and unexpectedly walked through the basketball court carrying an open umbrella. Our own experience using this video in the classroom is that even far fewer than 21% of students notice the woman. Yet when the video is shown again to demonstrate what most of the class missed, everyone sees the woman. Essentially, by focusing on one task, people miss very obvious information in their visual world. Simons and Chabris (1999) replicated this effect with a more contemporary video in which a person in a gorilla costume walks through a basketball game, thumping his chest, and is clearly and comically visible for more than five seconds. Simons provides a series of such demonstrations on a video that is available at . Our na?ve observation of the videos is that the common failure to see the obvious is amazing, far exceeding conventional assumptions about our visual awareness. Investigating the relationship between pe