Freakonomics Revised and Expanded Edition

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Freakonomics Revised and Expanded Edition Page 8

by Steven D. Levitt


  Unlikely as it may seem, the television game show The Weakest Link provides a unique laboratory to study discrimination. An import from the United Kingdom, The Weakest Link for a short time became wildly popular in the United States. The game includes eight contestants (or, in a later daytime version, six) who each answer trivia questions and compete for a single cash jackpot. But the player who answers the most questions correctly isn’t necessarily the player who advances. After each round, every contestant votes to eliminate one other contestant. A player’s trivia-answering ability is presumably the only worthwhile factor to consider; race, gender, and age wouldn’t seem to matter. But do they? By measuring a contestant’s actual votes against the votes that would truly best serve his self-interest, it’s possible to tell if discrimination is at play.

  The voting strategy changes as the game progresses. In the first several rounds, it makes sense to eliminate bad players since the jackpot grows only when correct answers are given. In later rounds, the strategic incentives are flipped. The value of building the jackpot is now outweighed by each contestant’s desire to win the jackpot. It’s easier to do that if you eliminate the other good players. So, roughly speaking, the typical contestant will vote to eliminate the worse players in the early rounds and the better players in the later rounds.

  The key to measuring the Weakest Link voting data is to tease out a contestant’s playing ability from his race, gender, and age. If a young black man answers a lot of questions correctly but is voted off early, discrimination would seem to be a factor. Meanwhile, if an elderly white woman doesn’t answer a single question correctly and is still not voted off, some sort of discriminatory favoritism would seem to be at play.

  Again, keep in mind that all of this is happening on camera. A contestant knows that his friends, family, and co-workers—along with a few million strangers—are watching. So who, if anyone, is discriminated against on The Weakest Link?

  Not, as it turns out, blacks. An analysis of more than 160 episodes reveals that black contestants, in both the early and late rounds of the game, are eliminated at a rate commensurate with their trivia-answering abilities. The same is true for female contestants. In a way, neither of these findings is so surprising. Two of the most potent social campaigns of the past half-century were the civil rights movement and the feminist movement, which demonized discrimination against blacks and women, respectively.

  So perhaps, you say hopefully, discrimination was practically eradicated during the twentieth century, like polio.

  Or more likely, it has become so unfashionable to discriminate against certain groups that all but the most insensitive people take pains to at least appear fair-minded, at least in public. This hardly means that discrimination itself has ended—only that people are embarrassed to show it. How might you determine whether the lack of discrimination against blacks and women represents a true absence or just a charade? The answer can be found by looking at other groups that society doesn’t protect as well. Indeed, the Weakest Link voting data do indicate two kinds of contestants who are consistently discriminated against: the elderly and Latinos.

  Among economists, there are two leading theories of discrimination. Interestingly, elderly Weakest Link contestants seem to suffer from one type, while Latinos suffer the other. The first type is called taste-based discrimination, which means that one person discriminates simply because he prefers to not interact with a particular type of other person. In the second type, known as information-based discrimination, one person believes that another type of person has poor skills, and acts accordingly.

  On The Weakest Link, Latinos suffer information-based discrimination. Other contestants seem to view the Latinos as poor players, even when they are not. This perception translates into Latinos’ being eliminated in the early rounds even if they are doing well and not being eliminated in the later rounds, when other contestants want to keep the Latinos around to weaken the field.

  Elderly players, meanwhile, are victims of taste-based discrimination: in the early rounds and late rounds, they are eliminated far out of proportion to their skills. It seems as if the other contestants—this is a show on which the average age is thirty-four—simply don’t want the older players around.

  It’s quite possible that a typical Weakest Link contestant isn’t even cognizant of his discrimination toward Latinos and the elderly (or, in the case of blacks and women, his lack of discrimination). He is bound to be nervous, after all, and excited, playing a fast-moving game under the glare of television lights. Which naturally suggests another question: how might that same person express his preferences—and reveal information about himself—in the privacy of his home?

  In a given year, some forty million Americans swap intimate truths about themselves with complete strangers. It all happens on Internet dating sites. Some of them, like Match.com, eHarmony.com, and Yahoo! Personals, appeal to a broad audience. Others cater to more specific tastes: ChristianSingles.com, JDate.com, LatinMatcher .com, BlackSinglesConnection.com, CountryWesternSingles.com, USMilitarySingles.com, OverweightDate.com, and Gay.com. Dating websites are the most successful subscription-based business on the Internet.

  Each site operates a bit differently, but the gist is this: You compose a personal ad about yourself that typically includes a photo, vital statistics, your income range, level of education, likes and dislikes, and so on. If the ad catches someone’s fancy, that someone will e-mail you and perhaps arrange a date. On many sites, you also specify your dating aims: “long-term relationship,” “a casual lover,” or “just looking.”

  So there are two massive layers of data to be mined here: the information that people include in their ads and the level of response gleaned by any particular ad. Each layer of the data can be asked its own question. In the case of the ads, how forthright (and honest) are people when it comes to sharing their personal information? And in the case of the responses, what kind of information in personal ads is considered the most (and least) desirable?

  Two economists and a psychologist recently banded together to address these questions. Günter J. Hitsch, Ali Hortaçsu, and Dan Ariely analyzed the data from one of the mainstream dating sites, focusing on more than 20,000 active users, half in Boston and half in San Diego. Fifty-six percent of the users were men, and the median age range for all users was twenty-one to thirty-five. Although they represented an adequate racial mix to reach some conclusions about race, they were predominantly white.

  They were also a lot richer, taller, skinnier, and better-looking than average. That, at least, is what they wrote about themselves. More than 4 percent of the online daters claimed to earn more than $200,000 a year, whereas fewer than 1 percent of typical Internet users actually earn that much, suggesting that three of the four big earners were exaggerating. Male and female users typically reported that they are about an inch taller than the national average. As for weight, the men were in line with the national average, but the women typically said they weighed about twenty pounds less than the national average.

  Most impressively, fully 72 percent of the women claimed “above average” looks, including 24 percent claiming “very good looks.” The online men too were gorgeous: 68 percent called themselves “above average,” including 19 percent with “very good looks.” This leaves only about 30 percent of the users with “average” looks, including a paltry 1 percent with “less than average” looks—which suggests that the typical online dater is either a fabulist, a narcissist, or simply resistant to the meaning of “average.” (Or perhaps they are all just pragmatists: as any real-estate agent knows, the typical house isn’t “charming” or “fantastic,” but unless you say it is, no one will even bother to take a look.) Twenty-eight percent of the women on the site said they were blond, a number far beyond the national average, which indicates a lot of dyeing, or lying, or both.

  Some users, meanwhile, were bracingly honest. Seven percent of the men conceded that they were married, with a significant minority of t
hese men reporting that they were “happily married.” But the fact that they were honest doesn’t mean they were rash. Of the 243 “happily married” men in the sample, only 12 chose to post a picture of themselves. The reward of gaining a mistress was evidently outweighed by the risk of having your wife discover your personal ad. (“And what were you doing on that website?” the husband might bluster, undoubtedly to little avail.)

  Of the many ways to fail on a dating website, not posting a photo of yourself is perhaps the most certain. (Not that the photo necessarily is a photo of yourself; it may well be some better-looking stranger, but such deception would obviously backfire in time.) A man who does not include his photo gets only 60 percent of the volume of e-mail response of a man who does; a woman who doesn’t include her photo gets only 24 percent as much. A low-income, poorly educated, unhappily employed, not very attractive, slightly overweight, and balding man who posts his photo stands a better chance of gleaning some e-mails than a man who says he makes $200,000 and is deadly handsome but doesn’t post a photo. There are plenty of reasons someone might not post a photo—he’s technically challenged or is ashamed of being spotted by friends or is just plain unattractive—but as in the case of a brand-new car with a For Sale sign, prospective customers will assume he’s got something seriously wrong under the hood.

  Getting a date is hard enough as it is. Fifty-six percent of the men who post ads don’t receive even one e-mail; 21 percent of the women don’t get a single response. The traits that do draw a big response, meanwhile, will not be a big surprise to anyone with even a passing knowledge of the sexes. In fact, the preferences expressed by online daters fit snugly with the most common stereotypes about men and women.

  For instance, men who say they want a long-term relationship do much better than men looking for an occasional lover. But women looking for an occasional lover do great. For men, a woman’s looks are of paramount importance. For women, a man’s income is terribly important. The richer a man is, the more e-mails he receives. But a woman’s income appeal is a bell-shaped curve: men do not want to date low-earning women, but once a woman starts earning too much, they seem to be scared off. Women are eager to date military men, policemen, and firemen (possibly the result of a 9/11 Effect, like the higher payments to Paul Feldman’s bagel business), along with lawyers and doctors; they generally avoid men with manufacturing jobs. For men, being short is a big disadvantage (which is probably why so many lie about it), but weight doesn’t much matter. For women, being overweight is deadly (which is probably why they lie). For a man, having red hair or curly hair is a downer, as is “bald with a fringe”—but a shaved head is okay. For a woman, salt-and-pepper hair is bad, while blond hair is, not surprisingly, very good.

  In addition to all the information about income, education, and looks, men and women on the dating site listed their race. They were also asked to indicate a preference regarding the race of their potential dates. The two preferences were “the same as mine” or “it doesn’t matter.” Like the Weakest Link contestants, the website users were now publicly declaring how they felt about people who didn’t look like them. They would reveal their actual preferences later, in confidential e-mails to the people they wanted to date.

  Roughly half of the white women on the site and 80 percent of the white men declared that race didn’t matter to them. But the response data tell a different story. The white men who said that race didn’t matter sent 90 percent of their e-mail queries to white women. The white women who said race didn’t matter sent about 97 percent of their e-mail queries to white men. This means that an Asian man who is good-looking, rich, and well educated will receive fewer than 25 percent as many e-mails from white women as a white man with the same qualifications would receive; similarly, black and Latino men receive about half as many e-mails from white women as they would if they were white.

  Is it possible that race really didn’t matter for these white women and men and that they simply never happened to browse a nonwhite date that interested them? Or, more likely, did they say that race didn’t matter because they wanted to come across—especially to potential mates of their own race—as open-minded?

  The gulf between the information we publicly proclaim and the information we know to be true is often vast. (Or, put a more familiar way: we say one thing and do another.) This can be seen in personal relationships, in commercial transactions, and of course in politics.

  By now we are fully accustomed to the false public proclamations of politicians themselves. But voters lie too. Consider an election between a black candidate and a white candidate. Might white voters lie to pollsters, claiming they will vote for the black candidate in order to appear more color-blind than they actually are? Apparently so. In New York City’s 1989 mayoral race between David Dinkins (a black candidate) and Rudolph Giuliani (who is white), Dinkins won by only a few points. Although Dinkins became the city’s first black mayor, his slender margin of victory came as a surprise, for preelection polls showed Dinkins winning by nearly 15 points. When the white supremacist David Duke ran for the U.S. Senate in 1990, he garnered nearly 20 percent more of the vote than pre-election polls had projected, an indication that thousands of Louisiana voters did not want to admit their preference for a candidate with racist views.

  Duke, though he never won the high political office he often sought, proved himself a master of information abuse. As Grand Wizard of the Knights of the Ku Klux Klan, he was able to compile a mailing list of thousands of rank-and-file Klansmen and other supporters who would eventually become his political base. Not content to use the list only for himself, he sold it for $150,000 to the governor of Louisiana. Years later, Duke would once again use the list himself, letting his supporters know that he’d fallen on hard times and needed their donations. In this way Duke was able to raise hundreds of thousands of dollars for his continuing work in the field of white supremacy. He had explained to his supporters in a letter that he was so broke that the bank was trying to repossess his house.

  In truth, Duke had already sold his house for a solid profit. (It isn’t known whether he used a real-estate agent.) And most of the money he raised from his supporters was being used not to promote any white supremacist cause but rather to satisfy Duke’s gambling habit. It was a sweet little scam he was running—until he was arrested and sent to federal prison in Big Spring, Texas.

  3

  Why Do Drug Dealers Still Live with Their Moms?

  The two previous chapters were built around a pair of admittedly freakish questions: What do schoolteachers and sumo wrestlers have in common? and How is the Ku Klux Klan like a group of real-estate agents? But if you ask enough questions, strange as they seem at the time, you may eventually learn something worthwhile.

  The first trick of asking questions is to determine if your question is a good one. Just because a question has never been asked does not make it good. Smart people have been asking questions for quite a few centuries now, so many of the questions that haven’t been asked are bound to yield uninteresting answers.

  But if you can question something that people really care about and find an answer that may surprise them—that is, if you can overturn the conventional wisdom—then you may have some luck.

  It was John Kenneth Galbraith, the hyperliterate economic sage, who coined the phrase “conventional wisdom.” He did not consider it a compliment. “We associate truth with convenience,” he wrote, “with what most closely accords with self-interest and personal well-being or promises best to avoid awkward effort or unwelcome dislocation of life. We also find highly acceptable what contributes most to self-esteem.” Economic and social behaviors, Galbraith continued, “are complex, and to comprehend their character is mentally tiring. Therefore we adhere, as though to a raft, to those ideas which represent our understanding.”

  So the conventional wisdom in Galbraith’s view must be simple, convenient, comfortable, and comforting—though not necessarily true. It would be silly to argue that
the conventional wisdom is never true. But noticing where the conventional wisdom may be false—noticing, perhaps, the contrails of sloppy or self-interested thinking—is a nice place to start asking questions.

  Consider the recent history of homelessness in the United States. In the early 1980s, an advocate for the homeless named Mitch Snyder took to saying that there were about 3 million homeless Americans. The public duly sat up and took notice. More than 1 of every 100 people were homeless? That sure seemed high, but…well, the expert said it. A heretofore quiescent problem was suddenly catapulted into the national consciousness. Snyder even testified before Congress about the magnitude of the problem. He also reportedly told a college audience that 45 homeless people die each second—which would mean a whopping 1.4 billion dead homeless every year. (The U.S. population at the time was about 225 million.) Assuming that Snyder misspoke or was misquoted and meant to say that one homeless person died every forty-five seconds, that’s still 701,000 dead homeless people every year—roughly one-third of all deaths in the United States. Hmm. Ultimately, when Snyder was pressed on his figure of 3 million homeless, he admitted that it was a fabrication. Journalists had been hounding him for a specific number, he said, and he hadn’t wanted them to walk away empty-handed.

  It may be sad but not surprising to learn that experts like Snyder can be self-interested to the point of deceit. But they cannot deceive on their own. Journalists need experts as badly as experts need journalists. Every day there are newspaper pages and television newscasts to be filled, and an expert who can deliver a jarring piece of wisdom is always welcome. Working together, journalists and experts are the architects of much conventional wisdom.

  Advertising too is a brilliant tool for creating conventional wisdom. Listerine, for instance, was invented in the nineteenth century as a powerful surgical antiseptic. It was later sold, in distilled form, as a floor cleaner and a cure for gonorrhea. But it wasn’t a runaway success until the 1920s, when it was pitched as a solution for “chronic halitosis”—a then obscure medical term for bad breath. Listerine’s new ads featured forlorn young women and men, eager for marriage but turned off by their mate’s rotten breath. “Can I be happy with him in spite of that?” one maiden asked herself. Until that time, bad breath was not conventionally considered such a catastrophe. But Listerine changed that. As the advertising scholar James B. Twitchell writes, “Listerine did not make mouthwash as much as it made halitosis.” In just seven years, the company’s revenues rose from $115,000 to more than $8 million.

 

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