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Mike Caulfield's avatar

Reminds me a lot of Gigerenzer's critiques of Kahneman which really changed my view on most psychological research in that area (and obviously pulls from Simon). It makes sense when you see a heuristic that is malfunctioning to think through where it does function and some of the hidden ways it functions.

There's that famous one about would you drive ten extra miles to save 50 bucks on a 1,000 dollar TV vs would you drive ten miles to get a $100 item half off. And of course we're all supposedly stupid because its 50 dollars either way. But look at how that heuristic plays out over many purchases. First of all, you buy $1,000 things rarely, which means you are incentivized to save money most of the time and let yourself off the hook only rarely. Secondly, smaller purchases are more frequent. If you develop a habit of going to the outlet/discount store for your $150 groceries each week and save $50 each week then at the end of the year you'll have you'll have $2600. If you drive the ten miles for your big electronics purchases at the end of the year you'll have what, $100? Also it's a big purchase, which is a big risk. That means having the store you bought it from being closer has additional benefits if something goes wrong. Finally, of course, there's the obvious -- if you can afford the luxury of a $1,000 TV you can maybe afford the luxury of not filling your afternoon with unnecessary driving.

But the big thing I took away from such analyses was you (as you mention) you can't just drill down on the individual action. The question is over time how does a person who follows this sort of rule fare over time across the decisions they make in their life. What I would say is for the majority of decisions they make in their life the heuristic works really well. Most things we deal with in life don't need big n's and most distant non-proximal processes aren't rigorous enough to overcome that. If I am going to hire a local plumber and I see they have a good rating on Yelp and I mention I am going to hire them and my neighbor says, oh wow, yeah that guy got the job half done at my place and left the water off while he did another job for two days and I couldn't reach him, I had to go to the bathroom at Phil's place for half a week -- I'd be an idiot to hire this guy. Any plumber that does that once is a bad plumber.

"But his Yelp rating is so good!" Yeah, you see how that sounds. This is the same for 90% of things we encounter in a day. You want to try that new weird novelty flavor of Coke, there's lots of bloggers talking about, your sister (whose tastes you know) says she tried it and frankly felt nauseous. Again, you'd be an idiot not to take that proximal advice more seriously. You know your sister's tastes, you know she isn't doing paid promos or chasing hate-shares, proximal advice is more inspectable. Proximal advice also often takes local factors into account. Want to buy an electric car in Fairbanks, Alaska, where the temp is often below zero and batteries operate sometimes at half of their hot weather efficiency? And electricity is over 27 cents a kwh? And if you run out of charge on the road you might literally die of cold? (Sorry I'm being so US-centric here). What does Consumer Reports know about that? Ask your neighbor.

I had a model in Web Literacy for Fact-Checkers of a good source that had three elements:

1. Is in a superior "position to know" (thank you epistemology)

2. Shares your beliefs, values, and understands your needs

3. Has a history of being "careful with the truth"

I built it broadly to stress that all these things are forever in conflict. The people who know the most about fracking are geologists that frack for oil companies, and aren't really attentive to your needs. People who share your beliefs might not be particularly rigorous in how they approach truth. Even with a rumor the person most in a position to know is often the person most careless with the truth, and so on. But long story short item one somewhat but most definitely item two benefits a lot from proximity, and I think that is really underrated.

Roasting Beans's avatar

Yes - I completely agree. This is something that I feel I had an intuition for and you put it so well into words.

I would add that - as you touched on - there exist so many variables in performing of such a hypothetical vehicle redundancy study that unless:

1. you have access to the data gatheting report, raw data, processed data and

2. you have the expertise to understand the methods used along with their limitations

you should be, at the very least, skeptical of the results. And actually, in the real world, such studies quickly become so complex that producing a single binary variable (reliable vs unreliable) misses so much of the nuance.

Obviously, there could e.g. exist an anomaly at the data gathering stage, data processing faults, etc. that - assuming no malpractice (which is not a guarantee) could be totally missed but severely impact the results. Open-sourcing solves a lot of this, but would not be standard practice in commercial studies. Science tries to achieve this but even so, many open-source data repositories vary in quality and reproducability.

And to the second point, even *if* the data is wholly clean, there might still exist multiple ways of interpreting the data. Ways which might prove to be contentious.

For this reason, I use a bathtub curve for estimating my trust: high for dumb anecdotal information, low for public non open claims, and high again for open public claims/info.

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