TCW - Chapter 5

the digital world and globalization

the title of chapter 5?

people communicate and share information

in present day digital community, ___ to others in social media platforms. real-time updates on global news, latest video trends, and other useful information can be found on various online resources and social media sites which are accessed through computers or mobile phones

interconnected world; political polarization; share the same worldviews

convenient access to these websites and technological devices gives a perception of an ___. however, despite the evident interconnectedness of people in the digital age, ___ is also becoming more challenging to deal with. people seem to prefer engaging with those who ___ than those in opposition to their opinions on pressing issues. despite the rich accessible information on the internet, people seem to believe the fake news they read on questionable websites

cognitive and social dynamics; psychology, sociology, and economics; Arab Spring

this chapter explores the ___ and ___ brought about by the digital age. theories and empirical findings from ___, ___, and ___ are applied in the discussion to explain why global phenomena such as the rise of the ___ and the popularity of viral trends emerge. basic principles on how to become better digital citizens in a globalized world are also drawn from these occurrences

sparking protests and political revolutions; engagement and political awareness

news agencies have been praising the role of social media in ___ and ___ across the middle east. there is no doubt that social media increases ___ and ___ about the tensions happening on the ground, both online and offline

twitter; causality

philip howard et. al (2011) reveals that political conversations on ___ immediately preceded mass protest movement. however, these phenomena do not fully imply ___

economic trajectory;

in a recent op-ed about the arab spring, turkish-born american economist daron acemogly conceded:

central through questions of political transitions are for understanding the ___ of the region, unequivocal answeres are not possible; it is only the details of politics and how the contingent path of history will play out that will determine how successful politically and thus economically these nations will be

1. society consists of the rich and the poor

2. the rich set tax rate and the degree of political inclusiveness; the poor learn these parameters and then decide whether to revolt or compromise

3. if revolutions are organized, it may succeed with 100% probability, but it may also permanently destroy a portion of the country's economic capacity

british economist and political scientist James Robinson, Acemoglu presents a relevant social media model showing these characteristics (3)

decision-making; change of regime; coordinate efficiently; bouazizi's public protests

in ___, the poor engage in a simple expected value calculation. the theory describes the comparative statistics of ___, but it has certain limitations. most importantly, it supposes that the poor can ___ with each other in organizing protests. coordination in a real-world police state is costly; salient actions such as ___ are valuable

stag hunt coordination game

used to analyze revolutions

good and bad; positive and negative

stag hunt coordination game has two asymmetrical equilibria: ___ and ___, as synchronized revolutions can either be for a ___ or ___ cause

social media; freedom of expression; coordination devices

the easiest way to access the efficient equilibrium is for the poor to communicate via ___, and for this reason, repressive regimes limit its citizen's ___. however, even if players cannot coordinate openly and directly through communication, perhaps they can use public signals as ___ devices

supporting and reinforcing role; aday et. al (2012); megaphone

recent empirical findings show that social media played a ___ and ___. ___ uses public bitly data to show that social media has a ___ effect. in other words, people outside the countries where protests are happening are more likely to click on the information than from the local citizens themselves

wilson and dunn (2011); al jazeera

a survey by ___ on egyptian protestors reveals that citizens are more likely to receive their news from traditional mainstream media outlets like ___ or simply firsthand conversations on the ground

the pew research center's 2011; do not have; two-thirds of egyptians

the ___ global attributes project on egypt has a simple explanation why social media only plays a supporting role: people simply ___ access to these social media platforms. moreover around ___ of egyptians have no access to the internet at all

content found in social media

aday and colleagues point out that mainstream media outlets benefit heavily from the ___ found in social media

howard et. al (2011)

observations of ___ show that activists in egypt and tunisia fed western news agencies with information about the protests

predictive; no direct effect

a recent working paper from acemoglu et. al (2015) uses twitter data and shows that social media in egypt is ___ of how likely protests will be mobilized, but it has ___ on stock market valuations of firms connected to the ruling regime

social media; affordable tools

what affected valuations is the intensity of actual protests in tahrir square. according to an article from the guardian, many of the tahrir sqaure protestors who reflected on the events of arab spring agree that uprising did not happen because of ___, but nonetheless served as ___ for activists and protestors to spread information to various channels

political fake news

in democratic countries like the philippines and the united states the rise of ___ on social media is apparent

41; 115; 7.6 million; 30.3 million

alcott and gentzkow (2017) recorded ___ pro-clinton (and anti-trump) articles and ___ pro-trump (anti-clinton) articles that were shared on facebook ___ million and ___ million times respectively. in other words, there are threefold pro-trump fake news articles than pro-clinton articles

13.8%; 23.5%; 19.2%; 14.8%

in a survey that asks people the kind of news sources they find important, the study shows that social media accounts to only ___ percent. traditional news sources such as cable tv ___ percent, network tv ___ percent, and mainstream websites ___ percent dominate.

41.8%; 10.1%; tvs, newspapers, and mainstream websites

alcott and gentzkow (2017) revealed that ___ percent of online traffic for fake news sites was found in social media. on the other hand, social media only contributed to ___ percent share of traffic for the mainsteam news sites; people usually browsed directly for the news in traditional media outlets lke ___, ___, and ___

68%; young adults; 88%; 62

study conducted by pew research center showed that ___ percent of american internet users used facebook. ___ dominated facebook usage; its study showed that ___ percent of americans ages 18-29 used facebook but ___ percent of adults aged 65+ increasingly used the social media platform

instagram: 28 %

twitter: 21 %

pinterest: 26 %

linkedin: 25 %

total percent usage of each app:

instagram: ___ %

twitter: ___ %

pinterest: ___ %

linkedin: ___ %

all have been used increasingly since 2012

confirmation bias

a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence; accept information that only validates our preferences and other beliefs

confirmation avoidance

People avoids information that opposes their preference and beliefs

too much choice effect

How the mind attempts to sift through the overwhelming availability of information and how emotions or affects serve as the primary mechanism in selecting types of information to be accepted

decision theory

rational individuals either prefer to consume more information or they update their beliefs in a bayesian probability. more information (larger choice set) would give them greater leeway to satisfy their unbounded preferences.

common good; market value; classic moral hazard; adverse selection problems; misallocation of goods

it is often assumed that information is a ___ priced by its ___. because regular goods are unsatiating, people would always want more information. conversely, the consequences of incomplete or asymmetric information such as the ___ and ___ result to a ___ in the market

more choice is better; personal control; intrinsic motivation

psychological research has supported the ___ perspective in which it is argued that increasing an individual's choice set leads to an increased sense of ___ and ___. psychologists during this period go as far as equating individual choice with ___

behavioral mechanism

in marketing and consumer research, seeking out for more information is viewed as a ___ to reduce the uncertainty in the task environment

monotonically declining; increasing information; uncertainty on product performace

folkes (1988); sheth & venkatesan (1968), jacoby et al (1994) found a ___ function between the relationship of ___ and ___

schwartz (2000)

who made the paradox of choice argument popular?

paradox of choice argument

individuals are likely to be less satisfied with their choice of item when too many options are presented to them

lyengar and lepper (2000); harder

researchers ___ and ___ (2000) conducted extensive laboratory and field experiments to find out what many psychologists now call as choice overload or too-much-choice effect. in their experiments, stretching the choice set to long lists of items to choose from made it ___ for individuals to make satisfying choices

time-consuming, prone to error, painful; uncertainty

decision-making is costly because it is ___, ___, and ___; all these costs make individuals anxious about their decisions, especially when these are made under a veil of ___

experts or familiar

choices are satisfying if individuals are ___ or ___ with their choices

regret avoidance/hindsight bias

People try to avoid decisions they anticipate as regrettable to avoid personal misery

satiation point; beyond

reutskaja and hogarth (2009) saw that satisfaction from increasing the size of the choice set has a ___; prior to the satiation point, it is satisfying to have more options to choose from, but choosing becomes less satisfying ___ it

jessup, veinott, todd, busemeyer (2009)

observed that the presence of overload was sensitive to task environment, explaining the presence of choice overload in some context

haynes (2009)

showed that subjects exposed to time limits when facing a large choice set led to lower satisfaction, greater frustration, and regret, but those exposed to extended time only experienced lower satisfaction

scheibehenne, greifender, and todd (2009)

found that choice justification was the moderating mechanism that could casually determine choice overload as opposed to other moderators such as set sizes or attractiveness of the option

iyenger, huberman, and jiang (2004)

saw a decrease in 401 (k) participation rates in greater number of fund options on a dataset of 800,000 employees

dranove, kessler, mccellen, and satterthwaite (2003)

said that more information on patient background through report cards show a decline in welfare for sicker patients because this has provided an incentive for doctors and hospitals to select healthier patients

huber, kirchler, and sutter (2008)

saw that more information may not yield higher returns in experimental financial markets

cognitive

the standard view in decision-making is ___, a product of the cognitive revolution zeitgeist. however, zanjonc (1968) emphasized that emotion or the affect, matters in human decision-making. moreover, zanjonc asserted that the affect predates one's cognitive judgements by serving as a ___, and it is not always the case that emotion are the outcomes of our decisions

automatic processes and stimuli

slovic et. al (2002) suggested that human ___ and affective ___ determine decision-making

1. system 1 and system 2

2. paradigmatic and narrative

3. experiential and rational

4. tacit and deliberate

5. continuum of intuitive and analytical thinking

literatures on psychology have an array of classifications on our modes of thought that put affect alongside cognitive processes (5)

simon's cognitive revolution; kahneman and tversky

due to the prominence of ___ as well as ___ in the 1970s, research on affective and automatic processes have been stifled

emotions; pleasure or disgust; emotional stimuli

in consumer behavior, ___ influence one's choice of product, for example, one's perceptions of ___ or ___ determine what kind of food to buy; choosing a car can elicit a wide range of ___

emotional stimuli; risk-averse; risk-seeking

___ dictates how people behave under risky or uncertain situations; fear makes people ___ in risky situations but anger makes only makes people ___

moral choices and judgements; disgust sensitivity

emotions prevade ___ and ___. people are disgusted with many immoral acts. in political psychology, david pizarro's work shows that people ___ predicts disapproval for homosexuals

emotions and automatic processes

affect has found an ally in neuroscience as neurological evidence is increasingly showing the dominance of ___ and ___ in decision-making as opposed to cognitive processes

ventral and medical prefrontal lobes; social judgements

damasio (1994) saw that patients with brain damages in the ___ and ___ that brought about poor recognition to social and emotional cues had difficulty in making ___

emotions

evidence provided by knutson and greer (2008) showed that ___ influence people's decisions primarily when they highly anticipate an outcome

positive emotional states; anxiety

in financial decisions, wu sacchet, and knutson (2012) as well as kuhnen and knutson (2011) showed that ___ such as excitement induce people to take risks, while ___ has the opposite effect

1. moral judgements

2. risk

3. tragic outcomes

examples of choice contexts where emotional priors or affects play a crucial role in the decision-making process (3)

kholberg; stages

moral psychology follows ___ perspective that individuals learn their moral principles in "___", and upon maturity, they can recall the rationale behind their moral choice cognitively from memory

haidt (2001)

sweeping changes began when ___ argued on the role of intuition in moral judgement

moral judgement; push another person to save five

green et al. (2001) linked emotion with ___ when they found out that neutral correlates associated to emotions are strongly associated to the morally repugnant ___ situations in the trolley problem

task environment

green et al study on moral decision-making process of task-sensitive individuals showed that the ___ is a factor in directing individuals to use cognitive or emotional cues when making moral judgment

risk

as an emotion, it is relatively a new concept considering that the traditional notion of it has always been a cognitive exercise of assigning probabilities to states of the world

risk

slovic (1987) was critical in developing the idea of ___ as feeling in his study arguing that social, cultural, economic, and political factors inform the way people develop their feelings of ___

risk

individuals feeling ___ exhibit heigtened vivdness, and these emotions drive how human individuals make decisions under these conditions

perception and intuition

kahneman (2003) recognized that complete mapping of people's bounded rationality requires the integration of ___ and ___

perception and affective feelings

slovic, finucane, peters, and macgregor (2004) added that the integration of ___ and ___ into economic models imbibe the high-level utility maximization in economics that would form the substrate of utility

tragic outcomes

when the dilemma individuals face involves ___, an intersection between moral and risky choices occurs

moral choices and risky feelings; initial priors

when appealing to its affective content, both ___ and ___ involve quick and fast decisions since these principles are already made ___

welfare of other people

moral choices involve principles that consider the ___; the more valuable these are in one's life, the more emotionally charged he or she becomes when in th eprocess of making a moral judgment

high

risky choices become emotionally charged when the stakes are ___; it can excite and make one take risks

faster than cognitive processes

there is already an agreed consensus in the psychological and cognitive science literature that affective processes are ___

self-regarding

with risky feelings they are observing themselves; hence it is ___

risky feelings

individuals facing ___ move towards the state of the world with precise probabilities and losses by choosing to know the information

moral dilemma

those facing ___ move to the state of ignorance, preferring not to know the details anymore

randomly

situations entailing mundane risks make one choose information ___

ex post

collected data are stated preferences

ex ante

data that are more informative about the way individuals behave

60

despite good intentions, donating relief aid to victims of natural disasters may prove unecessary and harmful. it is estimated that around ___ percent of unsolicited in-kind relief aid during natural disaster are left to unused

3.6%

the new york times reported findings from the giving USA foundation that donations for international affairs, which include giving relief aid, declined by ___ percent in 2013 due to the absence of major natural disasters

natural disasters

the Guardian ciriting results from the charities aid doundation bank, reported that donors from the united kindgom prefereed donating during ___

6,300; 4 million; 1.6 billion

typhoon haiyan in the philippines claimed ___ lives and displaced ___ million individuals, organization around the world pledged a total of ___ billion worth of donations

second disaster

NGO's have dubbed donating in-kind donations as the ___ due to the coordination, economic, and poltical burden donors pass on to relief afencies involved, such as the cost of moving, sorting, and storing in-kind donations during the most critical post-disaster hours

200 million pesos

the philippine daily inquirer reported that around ___ million pesos worth of in-kind donations were spoiled during typhoon haiyan

1 million euros; 10,000 euros

german public broadcasting company deutsche welle reported that the migrants offshore aid station, a malta-based ngo, reported a spike in donations to as much as ___ euros compared to the usual daily donations of ___ euros

3,755 dollars; 12,500

world vision reports to the los angeles times that its donations tripled in just one day after alan's photo circulated around social media, on sept 1 they received ___ dollars in donations, the next day when alan's body was found donations spiked to ___ dollars

105%; 149%

UNICEF reported that donations on its website increased by ___ percent since the photo went viral while its page views on its website spiked by ___ percent

214 million; 88%; 10%; 306,000 children

in 2015, WHO reported ___ million cases of malaria with ___ percent coming from the african region and ___ percent in southeast asia. around ___ children under 5 succumbed to the disease globally

identifiable victim effect

the tendency of individuals to offer larger aid to a specific, identifiable person as opposed to a vaguely large or statistically defined group with the same need

concrete examples

___ had far greater influence on the thoughts and actions of individuals as opposed to a more comprehensive yet uninspired statistical information

1. emotional reactions

2. certainty and uncertainty

3. perceived impact

4. psychological distance

jennie and lowenstein (1997) as well as lee and feeley (2016) listed potential causes why people tend to give more to identifiable victims as opposed to statistical victims

emotional reactions

people are more likely to react viscerally to emotional content as opposed to content that requires some analytical considerations

affect heuristic

slovic (2007) proposed that people's ___ is particularly strong. when people decided with their emotions, identifiable victims evoked stronger emotional reactions than statistical victims

nucleus accumbens

part of the brain's rewarding system, predicts how much people are willing to donate to the identifiable victims. the results suggest that identifiable victims evoke positive arousal; hence, they have the willingness to donate more

certainty and uncertainty

people overweigh certain outcomes as opposed to uncertain but likely outcomes

risk-averse; risk-seeking

people are generally ___ in gains but ___ in losses (kahneman & tversky, 1979)

certain; probabilistic; less

the identifiable victim is ___ while the statistical victims are ___ by definition; hence, the number of certain or identifiable fatalities that is deemed "equivalent" to uncertain or statistical fatalities is ___ than the expected number of statistical deaths

identifiable

people may tend to give more attention to ___ than statistical victimes

perceived impact

public perception is sensitive to the distribution and concentration of risk

reference points; high

it has been found that people are sensitive to their own internal ___ (kahneman and tversky, 1979); individuals are more inclined to help victims when the likelihood of saving is ___