Posts Tagged ‘Economist’


January 18, 2019

This is the sixth post in a series of posts on a book by P.W. Singer and Emerson T. Brooking titled “Likewar: The Weaponization of Social Media. The terrorist attack on Mumbai opened up all the resources of the internet using Twitter to defend against the attack. When the smoke cleared, the Mumbai attack left several legacies. It was a searing tragedy visited upon hundreds of families. It brought two nuclear powers to the brink of war. It foreshadowed a major technological shift. Hundreds of witnesses—some on-site, some from afar—had generated a volume of information that previously would have taken months of diligent reporting to assemble. By stitching these individual accounts together, the online community had woven seemingly disparate bits of data into a cohesive whole. The authors write, “It was like watching the growing synaptic connections of a giant electric brain.”

This Mumbai operation was a realization of “crowdsourcing,” an idea that had been on the lips of Silicon Valley evangelists for years. It had originally been conceived as a new way to outsource programming jobs, the internet bringing people together to work collectively, more quickly and cheaply than ever before. As social media use had sky rocketed, the promise of had extended a space beyond business.

Crowdsourcing is about redistributing power-vesting the many with a degree of influence once reserved for the few. Crowdsourcing might be about raising awareness, or about money (also known as “crowdfunding.”) It can kick-start a new business or throw support to people who might have remained little known. It was through crowdsourcing that Bernie Sanders became a fundraising juggernaut in the 2016 presidential election, raking in $218 million online.

For the Syrian civil war and the rise of ISIS, the internet was the “preferred arena for fundraising.” Besides allowing wide geographic reach, it expands the circle of fundraisers, seemingly linking even the smallest donor with their gift on a personal level. The “Economist” explained, this was, in fact, one of the key factors that fueled the years-long Syrian civil war. Fighters sourced needed funds by learning “to crowd fund their war by using Instagram, Facebook and YouTube. In exchange for a sense of what the war was really like, the fighters asked for donations via PayPal. In effect, they sold their war online.”

In 2016 a hard-line Iraqi militia took to Instagram to brag about capturing a suspected ISIS fighter. The militia then invited its 75,000 online fans to vote on whether to kill or release him. Eager, violent comments rolled in from around the world, including many from the United States. Two hours later, a member of the militia posted a follow-up selfie; the body of the prisoner lay in a pool of blood behind him. The caption read, “Thanks for the vote.” In the words of Adam Lineman, a blogger and U.S. Army veteran, this represented a bizarre evolution in warfare: “A guy on the toilet in Omaha, Nebraska could emerge from the bathroom with the blood of some 18-year-old Syrian on his hands.”

Of course, crowdsourcing can be used for good as well as for evil.

What is Kahnemanite Advertising?

December 10, 2013

According to an article1 in The Economist “Kahnemanite advertising prizes emotion over information and pays more attention to a brand’s “purpose” than to its products.” Daniel Kahneman is the Nobel winning psychologist who is the author of the best selling Thinking Fast and Slow (enter Kahneman into the healthymemory blog search box to find many posts on Kahneman). System one is thinking very fast, most of which occurs below consciousness. System two takes the output of system one and processes, or in conventional parlance, thinks about it. If we didn’t have system one, we would have long ago become extinct. However, the efficiency of System one comes at some cost. It can produce erroneous or incorrect responses, and it is the role of System two to catch and correct these errors. Unfortunately, this frequently fails to happen. Emotional responding is part of System one.

Of course, it is not exactly news that advertisers like to exploit our emotional responses, but conventional advertising also likes to engage System 2. Kahnemanite advertising refers to the emphasis placed on System 1 and the cost of ignoring System 2. I found it interesting that marketers actually speak in terms of System 1 and System 2 processing.

Different methods are used to test whether System 1 is being effectively engaged. Brainjuicer asks subjects to rate an advert by saying which of eight faces, each expressing a different emotion, best reflects the feeling and intensity of the emotion. Another firm, Decode, uses implicit association in which subjects associate images (for example, a chocolate bar) with a concept (for example comfort) and times the reactions. Neuro-Insight monitors electrical activity in the brain when subjects view an advert.

The Economist article finds irony in this. It writes that “Most readers of Thinking Fast, Thinking Slow will end up of mistrusting system one for its propensity to misleading.” But if readers of Thinking Fast, Thinking Slow have correctly understood Kahneman, they will understand that most of the time System one is correct. It is only occasionally that System one will mislead.

Please understand that Kahneman, himself, is not directly involved in any of these activities. You should also be aware that Kahneman, together with his colleague Amos Tversky, are regarded by many as the fathers of behavioral economics. Behavioral economics exposes the fallacy of the rational human being, which is the foundation of conventional economics and which forms the basis of most contemporary policy. This needs to change. To read more about this enter “behavioral economics”, then “gross national happiness” into the healthymemory blog search block.

1Nothing more than feelings, The Economist, December 7th 2013, p.70.

© Douglas Griffith and, 2013. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Douglas Griffith and with appropriate and specific direction to the original content.