Bank like there’s no one watching

Martha Gill's Irrational Animals Column.

As Barclays prepares for an inquiry into its practices, 15 banks lined up behind it, Bob Diamond must be haunted by what he said at last year’s BBC Today business lecture: “Culture is difficult to define, I think it’s even more difficult to mandate – but for me the evidence of culture is how people behave when no one is watching.”

Well, we’re all watching now. Most of us are viewing with cynicism - with thoughts that sharp practice is fairly inevitable and that we’ll probably find more as the investigation unfolds. But perhaps we should all be more shocked. After all, we naturally treat others surprisingly fairly, even when given the power not to. What went so wrong here?
 
Here's a classic experiment that might help - it's known as the ultimatum game. In this game, you are given some money and one condition: you must share the money with another. If the other turns the money down, though, both of you lose it.
 
Now, the logical response to the condition is to offer your partner the smallest amount possible. They might be slightly annoyed, but at least they got something out of it. To the surprise of the economists who thought up the test, though, this is not what happened. Instead, subjects gave out far more money than they needed to.
 
What made them so generous? The researchers speculated that it was fear of rejection: they didn't want to make the other person angry enough to walk away from the deal. 
 
But what happens when the respondent’s power of rejection is taken away? A slight change to the ultimatum game turns it into the dictator game. In this version partner can simply dictate how much the other receives. No fear of rejection here - the second partner must just take what they are offered. But here again, the experimenters were surprised - dictators turned out to be unnecessarily generous. 
 
What's going on? It can't just be the fear of being turned down. One explanation that fits is that people have a sense of fairness. We simply don't want to act too selfishly. 
 

See no evil

 

But there was a way to change players’ commitment to fairness: isolation. When put in a separate room from their partners, with no access to their reaction, the dictators started handing out tiny amounts – the smallest they could get away with. The lethal combination of power and isolation seemed finally to put paid to their empathetic instincts. When no one was watching, they just didn’t care. 

Back to the bankers, then: we can’t expect people to act fairly or even legally if they are given a large amount of power in isolation from those affected by their decisions. We like to seem fair, but this only works with an audience. A culture where no one is watching is a culture doomed to corruption.
Shadowy figures. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 09 July 2012 issue of the New Statesman, Honey, I shrunk the Tories

Photo: Getty
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Are cats solid or liquid? 13 of the best winners of the Ig Nobel prize

This satirical awards ceremony has celebrated unusual contributions to science for 27 years. 

Every year, the Ig Nobel Prize Committee hands out ten awards. A parody of the Nobel Prize, it recognises some of the most whimsical contributions to science. 

Categories include psychology, fluid dynamics and chemical engineering, much like the real Nobel Prizes, but change year to year. Its name is a pun on the word ignoble.

Studies that won prizes this year include a paper which discovered which part of the brain creates repulsion to cheese, a report on the effects of human blood in the diet of hairy-legged vampire bats, and research explaining why old men have big ears (gravity). The winners are just the latest in 27 years of the award. Here are 13 of the most head-scratching and unique winners:

1. Original conspiracy theories

Erich Von Daniken won the Literature Prize in 1991, the first year of the Ig Nobel awards, for his book Chariots of the Godswhich suggested human life takes its origins from ancient aliens that came to earth. Originally published in 1968, the book imagines that many ancient civilisations demonstrated higher scientific abilities than was possible given the limitations of their time, so aliens must have come to Earth and transmitted the knowledge to make human progress possible. 

2. The Antichrist from the East

Robert Faid, a mathematician, invested a huge amount of time in calculating the exact odds of whether Mikhail Gorbachev, the final leader of the Soviet Union, is the Antichrist. (The exact odds are 710,609,175,188,282,000 to 1, if you’re curious).

3. Refined pigeons 

Shigeru Watanabe, Junko Sakamoto and Masumi Wakita successfully trained several pigeons to discriminate between Picasso’s paintings and Monet’s paintings, a skill that some humans might still be struggling with. 

4. Lovesick

Four scientists at the University of Pisa discovered that the biochemical basis of romantic love might not be all that different from the biochemical basis of neuroticism and Obsessive Compulsive Disorder, as they observed the multiple ways that platelet serotonin was transported around various sections of the brain. 

5. Hell is closer than we think 

Dr. Jack Van Impe and Rexella Van Impe carried out research which demonstrated that one of the universe’s great mysteries, black holes, fulfil the theological and technical requirements to be the location of hell itself.

6. Feathery feelings 

Stefano Ghirlanda, Liselotte Jansson, and Magnus Enquist of Stockholm University demonstrated that our flightless friends may be no different to us – in that chickens prefer beautiful humans. Chickens were more likely to react to pictures of faces that were deemed more conventionally attractive.

7. Creative (non) fiction

This went to a whole group of people in Nigeria, the internet entrepreneurs who used e-mail to introduce many innocent fraud victims around the world to “a cast of rich characters – General Sani Abacha, Barriste Jon A Mbeki Esq”, who find themselves in need of a loan and rely on the generosity of strangers to access their own immense fortunes. 

8. Say Cheese 

Nic Svenson and Piers Barnes of the Australian Commenwealth Scientific and Research Organisation did all the legwork and found the exact number of photographs that you have to take in order to ensure that nobody in a group photo will have their eyes closed. 

9. A girl's best friends 

Three scientists at the Universidad Nacional Autónoma de México were able to create a girl’s best friend, diamonds, from her other best friend, tequila. They did this by heating tequila at very high temperatures to turn it into a gas. They then heated the gas further to break it into solid crystals that had the same composition as pure diamonds. 

10. Swearing is good for you 

Richard Stephens, John Atkins and Andrew Kingston of Keele University finally proved that there’s a scientific basis for the belief that swearing relieves pain. It may have something to do with how swearing can nullify the typical fight-or-flight response to pain, among other reasons.

11. Beer goggles

Five scientists, Laurent Begue, Brad Bushman, Oulman Zerhouni, Baptiste Subra and Medhi Ourabah, confirmed that “beauty is in the eye of the beer holder” ie that if you’re drunk, you’re more likely to think you’re attractive.

12. More than a pet rock 

Mark Avis, Sarah Forbes and Shelagh Fergon were able to use a sales and marketing perspective to ascertain the potential personalities of various kinds of rocks, by interviewing focus groups who said what they believed the rocks could be like. Some rocks (particularly the more fetching ones) were described as "classy, feminine", while others were seen more as "a hippy, someone who believes in star signs and whatnot". 

13. The internet's favorite animal 

Marc-Antoine Fardin sought to answer the age old question: cats – liquid or solid? Apparently, they're both. (Fardin admits there’s much more research to be done). 

A full list of every year's winners can be found here