RESEARCH_FILE
George Loewenstein
Carnegie Mellon University
Known for:Behavioral-economics research on information avoidance, including formalizing and measuring the ostrich effect
SEE THE PRACTICE
Turn a thought this research explains into one clear move.
THE THOUGHT
“If I don't open the bill, it isn't real yet”
YOUR RECORDED RESPONSE
“The amount is there whether I read it or not.”
ONE PRIVATE MOVE
Pick up the unopened bill, place it on a clear surface, and open it just far enough to read the amount and due date. Close it again if you want. Do this privately and stop there.
Key findings
- 2009
With Karlsson and Seppi, modeled information avoidance hedonically: people monitor information more after good preliminary news and 'put their heads in the sand' after bad — with supporting evidence from Swedish and American investors checking portfolios less in down markets. The ostrich effect: Selective attention to information ↗
- 2016
With Sicherman, Seppi and Utkus, used daily login data from retirement accounts to show attention itself responds to news: logins fell 9.5% after market declines and were lower when volatility (VIX) was high. Financial Attention ↗