Pulling an all-nighter won't help with decision-making the morning after. Photo: Thomas Dworzak/Magnum Photos
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Asleep at the wheel: what makes us human is our irrationality

We are drawn to some types of information over others, our past experiences shape our present-day judgements and our emotional and physical states affect the choices we make.

I am 14 years old, sitting in my first economics class. We are taught that we make decisions as rational men, Homo economicus. That we objectively weigh up pros and cons and coolly evaluate information.

Rational men. Hmmm. Not only does economics in one swoop ignore my entire sex, it also assumes that we are robotic, dispassionate creatures.

We are not.

What makes us human is our irrationality – the way we are drawn to some types of information over others, the way our past experiences shape our present-day judgements, the way our emotional and physical states affect the choices we make.

Take colour. It plays a surprisingly signi­ficant role in the way we evaluate situations. Men rate women as more attractive if they see their photographs set against red backgrounds rather than white, grey, blue or green. Waitresses are tipped more when they wear red. Football referees are more likely to give penalties to teams wearing black strips than to those in other colours.

Language – the choice of words, images and metaphors used – also has a huge impact on the judgement calls we make. I may not fall for politicians’ fear-mongering, but beauty companies have at times caught me out. In my bathroom cabinet are products that “correct” dark spots, “fight” ageing and can infuse my eyes with “youth”. Really, though?

And how about the British study which revealed that when two groups of psychiatrists were told the same story of a young man who had attacked a train conductor, the only difference being the attacker’s name, they provided different diagnoses depending on what they believed him to be called? When the psychiatrists thought the attacker was called Matthew, they were more likely to diagnose him with schizophrenia. When they thought he was called Wayne, they were more likely to diagnose him with a drug problem.

Time and time again we are affected by factors of which we are not even aware. Time and time again we behave irrationally. It’s not just the way information is presented to us of which we need to be mindful. We need to be aware, too, of the impact of our physiological and psychological state on the choices we make.

If we’re anxious, we are more risk-averse. Stress makes us prone to tunnel vision, less likely to take in all the information we need. When we’re happy we take more risks, are more trusting, more generous. It’s why a country’s stock market tends to rise off the back of a national team’s win at football. (Not something England needed to worry about this year, sadly.)

If we’re tired, that messes with our decision-making. If you’ve ever pulled an all-nighter you will know the symptoms of sleep deprivation all too well: difficulty concentrating, brain like cotton wool, memory lapses. But did you know that if you go 24 hours without sleep or spend a week sleeping only four or five hours a night, it’s as if you’re making decisions drunk?

Are you the type who skips breakfast? If so you might want to rethink that. Fascinating research in Israel on why judges decided to grant prisoners parole showed that the main determinant wasn’t the applicant’s gender or ethnicity, nor even the type of crime, but whether the judge had recently eaten.

If you went before the judge just before they’d had their mid-morning snack . . . disaster. Zero per cent chance of getting parole. Immediately after that snack: 65 per cent. Just before lunch . . . disaster again. Only a 10 per cent chance of getting parole. Immediately after lunch: 65 per cent.

And if you’re feeling horny, well, you probably want to wait before you make that important call. When Canadian male undergraduates were given one of two images to look at – either a Victoria’s Secret model or a neutral object, a rock – and then asked to make a financial decision, the guys who’d been looking at the Victoria’s Secret model made significantly worse financial decisions than those who’d been looking at a rock.

What makes us human is our irrationality – and that the choices we make are influenced by a whole host of factors that have nothing to do with the decision at hand.

What makes us smart is our ability to acknowledge this, and then actively challenge ourselves and our immediate impulse. 

The “What Makes Us Human?” series is published in partnership with the Jeremy Vine show (BBC Radio 2)

Noreena Hertz’s “Eyes Wide Open: How to Make Smart Decisions in a Confusing World” is out in paperback (William Collins, £8.99)

Noreena Hertz is an academic and an author. Her most recent book is Eyes Wide Open. Other books include The Silent Takeover and I.O.U.: The Debt Threat and Why We Must Defuse It".

This article first appeared in the 13 August 2014 issue of the New Statesman, A century of meddling in the Middle East

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Labour tensions boil over at fractious MPs' meeting

Corbyn supporters and critics clash over fiscal charter U-turn and new group Momentum. 

"A total fucking shambles". That was the verdict of the usually emollient Ben Bradshaw as he left tonight's Parliamentary Labour Party meeting. His words were echoed by MPs from all wings of the party. "I've never seen anything like it," one shadow minister told me. In commitee room 14 of the House of Commons, tensions within the party - over the U-turn on George Osborne's fiscal charter and new Corbynite group Momentum - erupted. 

After a short speech by Jeremy Corbyn, shadow chancellor John McDonnell sought to explain his decision to oppose Osborne's fiscal charter (having supported it just two weeks ago). He cited the change in global economic conditions and the refusal to allow Labour to table an amendment. McDonnell also vowed to assist colleagues in Scotland in challenging the SNP anti-austerity claims. But MPs were left unimpressed. "I don't think I've ever heard a weaker round of applause at the PLP than the one John McDonnell just got," one told me. MPs believe that McDonnell's U-turn was due to his failure to realise that the fiscal charter mandated an absolute budget surplus (leaving no room to borrow to invest), rather than merely a current budget surplus. "A huge joke" was how a furious John Mann described it. He and others were outraged by the lack of consultation over the move. "At 1:45pm he [McDonnell] said he was considering our position and would consult with the PLP and the shadow cabinet," one MP told me. "Then he announces it before 6pm PLP and tomorow's shadow cabinet." 

When former shadow cabinet minister Mary Creagh asked Corbyn about the new group Momentum, which some fear could be used as a vehicle to deselect critical MPs (receiving what was described as a weak response), Richard Burgon, one of the body's directors, offered a lengthy defence and was, one MP said, "just humiliated". He added: "It looked at one point like they weren't even going to let him finish. As the fractious exchanges were overheard by journalists outside, Emily Thornberry appealed to colleagues to stop texting hacks and keep their voices down (within earshot of all). 

After a calmer conference than most expected, tonight's meeting was evidence of how great the tensions within Labour remain. Veteran MPs described it as the worst PLP gathering for 30 years. The fear for all MPs is that they have the potential to get even worse. 

George Eaton is political editor of the New Statesman.