0:00:00.611,0:00:03.388 I'm going to start[br]on a slightly somber note. 0:00:04.476,0:00:07.423 Two thousand and seven, five years ago, 0:00:07.447,0:00:10.468 my wife gets diagnosed with breast cancer. 0:00:11.150,0:00:12.342 Stage IIB. 0:00:14.112,0:00:17.095 Now, looking back, the most[br]harrowing part of that experience 0:00:17.119,0:00:18.926 was not just the hospital visits -- 0:00:18.950,0:00:21.762 these were very painful[br]for my wife, understandably so. 0:00:22.191,0:00:25.641 It was not even the initial shock[br]of knowing that she had breast cancer 0:00:25.665,0:00:26.816 at just 39 years old, 0:00:26.840,0:00:29.281 absolutely no history[br]of cancer in her family. 0:00:30.203,0:00:34.400 The most horrifying and agonizing part[br]of the whole experience 0:00:34.424,0:00:38.191 was we were making decisions[br]after decisions after decisions 0:00:38.215,0:00:39.810 that were being thrust upon us. 0:00:40.176,0:00:42.996 Should it be a mastectomy?[br]Should it be a lumpectomy? 0:00:43.319,0:00:45.620 Should it be a more[br]aggressive form of treatment, 0:00:45.644,0:00:47.157 given that it was stage IIB? 0:00:47.514,0:00:48.789 With all the side effects? 0:00:48.813,0:00:51.326 Or should it be a less[br]aggressive form of treatment? 0:00:51.874,0:00:55.493 And these were being thrust[br]upon us by the doctors. 0:00:56.405,0:00:58.022 Now you could ask this question, 0:00:58.046,0:00:59.584 why were the doctors doing this? 0:00:59.608,0:01:01.067 A simplistic answer would be, 0:01:01.091,0:01:02.348 the doctors are doing this 0:01:02.372,0:01:04.965 because they want to protect[br]themselves legally. 0:01:05.893,0:01:07.576 I think that is too simplistic. 0:01:07.600,0:01:09.116 These are well-meaning doctors, 0:01:09.140,0:01:11.775 some of them have gone on[br]to become very good friends. 0:01:11.799,0:01:13.952 They probably were simply[br]following the wisdom 0:01:13.976,0:01:15.729 that has come down through the ages, 0:01:15.753,0:01:17.868 this adage that when[br]you're making decisions, 0:01:17.892,0:01:19.574 especially decisions of importance, 0:01:19.598,0:01:22.141 it's best to be in charge,[br]it's best to be in control, 0:01:22.165,0:01:24.163 it's best to be in the driver's seat. 0:01:25.115,0:01:27.217 And we were certainly[br]in the driver's seat, 0:01:27.241,0:01:28.551 making all these decisions. 0:01:28.575,0:01:31.169 And let me tell you --[br]if some of you have been there, 0:01:31.193,0:01:33.614 it was a most agonizing[br]and harrowing experience. 0:01:34.677,0:01:35.831 Which got me thinking. 0:01:35.855,0:01:39.140 I said, is there any validity[br]to this whole adage 0:01:39.164,0:01:41.228 that when you're making decisions, 0:01:41.252,0:01:43.349 it's best to take the driver's seat, 0:01:43.373,0:01:44.755 be in charge, be in control? 0:01:44.779,0:01:48.567 Or are there contexts[br]where we're far better off 0:01:48.591,0:01:50.073 taking the passenger's seat 0:01:50.097,0:01:51.447 and have someone else drive? 0:01:51.471,0:01:53.453 For example, a trusted financial advisor, 0:01:53.477,0:01:55.089 could be a trusted doctor, etc. 0:01:56.223,0:01:58.816 And since I study human decision making, 0:01:58.840,0:02:01.293 I said, I'm going to run some studies 0:02:01.317,0:02:02.773 to find some answers. 0:02:02.797,0:02:05.739 And I'm going to share one[br]of these studies with you today. 0:02:06.230,0:02:10.111 So, imagine that all of you[br]are participants in the study. 0:02:10.135,0:02:13.379 I want to tell you that[br]what you're going to do in the study is, 0:02:13.403,0:02:15.409 you're going to drink a cup of tea. 0:02:15.916,0:02:19.369 If you're wondering why, I'll tell you why[br]in a few seconds from now. 0:02:19.393,0:02:21.718 You are going to solve[br]a series of puzzles, 0:02:21.742,0:02:25.647 and I'm going to show you examples[br]of these puzzles momentarily. 0:02:26.202,0:02:27.700 And the more puzzles you solve, 0:02:27.724,0:02:30.341 the greater the chances[br]that you'll win some prizes. 0:02:31.167,0:02:33.085 Now, why do you have to consume the tea? 0:02:33.109,0:02:34.928 Why? Because it makes a lot of sense: 0:02:34.952,0:02:38.166 In order to solve these puzzles[br]effectively, if you think about it, 0:02:38.190,0:02:41.588 your mind needs to be in two states[br]simultaneously, right? 0:02:41.961,0:02:44.108 It needs to be alert, 0:02:44.132,0:02:45.735 for which caffeine is very good. 0:02:46.823,0:02:49.523 Simultaneously, it needs to be calm -- 0:02:49.547,0:02:51.270 not agitated, calm -- 0:02:51.294,0:02:53.113 for which chamomile is very good. 0:02:55.415,0:02:58.172 Now comes the between-subjects design, 0:02:58.196,0:03:00.007 the AB design, the AB testing. 0:03:00.031,0:03:03.728 So what I'm going to do is randomly[br]assign you to one of two groups. 0:03:03.752,0:03:06.349 So imagine that there is[br]an imaginary line out here, 0:03:06.373,0:03:09.557 so everyone here will be group A, 0:03:09.581,0:03:11.389 everyone out here will be group B. 0:03:12.427,0:03:17.115 Now, for you folks, what I'm going to do[br]is I'm going to show you these two teas, 0:03:17.139,0:03:20.331 and I'll go ahead and ask you[br]to choose your tea. 0:03:20.355,0:03:22.323 So you can choose whichever tea you want. 0:03:22.347,0:03:24.497 You can decide, what is your mental state: 0:03:24.521,0:03:26.133 OK, I choose the caffeinated tea, 0:03:26.157,0:03:27.448 I choose the chamomile tea. 0:03:27.472,0:03:30.458 So you're going to be in charge,[br]you're going to be in control, 0:03:30.482,0:03:32.844 you're going to be in the driver's seat. 0:03:32.868,0:03:36.021 You folks, I'm going to show you[br]these two teas, 0:03:36.045,0:03:37.672 but you don't have a choice. 0:03:38.141,0:03:40.200 I'm going to give you[br]one of these two teas, 0:03:40.224,0:03:42.922 and keep in mind, I'm going[br]to pick one of these two teas 0:03:42.946,0:03:44.341 at random for you. 0:03:44.365,0:03:45.647 And you know that. 0:03:46.215,0:03:49.013 So if you think about it,[br]this is an extreme-case scenario, 0:03:49.037,0:03:50.323 because in the real world, 0:03:50.347,0:03:52.344 whenever you are taking passenger's seat, 0:03:52.368,0:03:54.964 very often the driver is going[br]to be someone you trust, 0:03:54.988,0:03:56.211 an expert, etc. 0:03:56.235,0:03:58.068 So this is an extreme-case scenario. 0:03:59.059,0:04:03.996 Now, you're all going to consume the tea. 0:04:04.020,0:04:06.059 So imagine that you're taking the tea now, 0:04:06.083,0:04:07.863 we'll wait for you to finish the tea. 0:04:07.887,0:04:11.743 We'll give another five minutes[br]for the ingredient to have its effects. 0:04:11.767,0:04:16.551 Now you're going to have[br]30 minutes to solve 15 puzzles. 0:04:17.328,0:04:19.929 Here's an example of the puzzle[br]you're going to solve. 0:04:20.645,0:04:22.738 Anyone in the audience[br]want to take a stab? 0:04:22.762,0:04:24.923 Audience member: Pulpit![br]Baba Shiv: Whoa! OK. 0:04:24.947,0:04:26.097 That's cool. 0:04:26.121,0:04:29.125 Yeah, so what we'd do if we had[br]you who gave the answer 0:04:29.149,0:04:30.428 as a participant, 0:04:30.452,0:04:32.610 we would have calibrated[br]the difficulty level 0:04:32.634,0:04:34.717 of the puzzles to your expertise. 0:04:34.741,0:04:37.066 Because we want[br]these puzzles to be difficult. 0:04:37.090,0:04:38.305 These are tricky puzzles, 0:04:38.329,0:04:40.843 because your first instinct[br]is to say "tulip." 0:04:41.440,0:04:43.307 And then you have to unstick yourself. 0:04:43.960,0:04:45.111 Right? 0:04:45.135,0:04:47.850 So these have been calibrated[br]to your level of expertise, 0:04:47.874,0:04:49.731 because we want this to be difficult, 0:04:49.755,0:04:51.925 and I'll tell you why, momentarily. 0:04:51.949,0:04:53.680 Now, here's another example. 0:04:54.529,0:04:56.266 Anyone? This is much more difficult. 0:04:56.290,0:04:58.306 Audience member: Embark.[br]BS: Yeah. Wow! OK. 0:04:58.330,0:05:00.205 So, yeah, so this is, again, difficult. 0:05:00.229,0:05:03.062 You'll say "kamber," then you'll go,[br]"maker," and all that, 0:05:03.086,0:05:04.716 and then you can unstick yourself. 0:05:04.740,0:05:07.647 So you have 30 minutes now[br]to solve these 15 puzzles. 0:05:08.836,0:05:12.897 Now, the question we're asking[br]here is, in terms of the outcome -- 0:05:12.921,0:05:15.516 and it comes in the number[br]of puzzles solved -- 0:05:15.540,0:05:19.740 will you in the driver's seat[br]end up solving more puzzles 0:05:19.764,0:05:21.067 because you are in control, 0:05:21.091,0:05:23.249 you could decide which tea[br]you would choose, 0:05:23.273,0:05:24.780 or would you be better off, 0:05:24.804,0:05:26.890 in terms of the number of puzzles solved? 0:05:27.351,0:05:30.380 And, systemically, what we will show, 0:05:30.404,0:05:31.958 across a series of studies, 0:05:31.982,0:05:34.276 is that you, the passengers, 0:05:34.300,0:05:37.849 even though the tea[br]was picked for you at random, 0:05:37.873,0:05:40.744 will end up solving[br]more puzzles than you, the drivers. 0:05:42.125,0:05:44.492 We also observe another thing, 0:05:44.516,0:05:47.274 and that is, you folks not only[br]are solving fewer puzzles, 0:05:47.298,0:05:51.115 you're also putting less juice[br]into the task -- less effort, 0:05:51.139,0:05:52.805 you're less persistent, and so on. 0:05:52.829,0:05:53.980 How do we know that? 0:05:54.004,0:05:56.299 Well, we have two objective measures. 0:05:56.323,0:05:59.471 One is, what is the time,[br]on average, you're taking 0:05:59.495,0:06:01.577 in attempting to solve these puzzles? 0:06:01.966,0:06:04.275 You will spend less time compared to you. 0:06:04.771,0:06:06.787 Second, you have[br]30 minutes to solve these; 0:06:06.811,0:06:08.549 are you taking the entire 30 minutes 0:06:08.573,0:06:10.962 or are you giving up[br]before the 30 minutes elapse? 0:06:10.986,0:06:14.060 You will be more likely to give up[br]before the 30 minutes elapse, 0:06:14.921,0:06:16.076 compared to you. 0:06:16.100,0:06:17.732 So you're putting in less juice, 0:06:17.756,0:06:20.191 and therefore, the outcome:[br]fewer puzzles solved. 0:06:21.731,0:06:25.766 That brings us now to:[br]why does this happen? 0:06:25.790,0:06:30.389 And under what situations -- when --[br]would we see this pattern of results 0:06:30.413,0:06:34.104 where the passenger is going to show[br]better, more favorable outcomes, 0:06:34.128,0:06:35.561 compared to the driver? 0:06:36.767,0:06:41.001 It all has to do with when you face[br]what I call the INCA. 0:06:42.358,0:06:46.261 It's an acronym that stands for the nature[br]of the feedback you're getting 0:06:46.285,0:06:47.820 after you made the decision. 0:06:48.231,0:06:51.063 So if you think about it,[br]in this particular puzzle task -- 0:06:51.087,0:06:53.411 it could happen in investing[br]in the stock market, 0:06:53.435,0:06:54.589 very volatile out there, 0:06:54.613,0:06:56.415 it could be the medical situation -- 0:06:56.439,0:06:58.082 the feedback here is immediate. 0:06:58.106,0:07:01.387 You know the feedback,[br]whether you're solving the puzzles or not. 0:07:01.411,0:07:04.022 Right? Second, it is negative. 0:07:04.046,0:07:06.614 Remember, the deck[br]was stacked against you, 0:07:06.638,0:07:09.106 in terms of the difficulty[br]level of these puzzles. 0:07:09.454,0:07:11.468 And this can happen in the medical domain. 0:07:11.492,0:07:13.594 For example, very early on[br]in the treatment, 0:07:13.618,0:07:16.682 things are negative, the feedback,[br]before things become positive. 0:07:16.706,0:07:18.728 Right? It can happen in the stock market. 0:07:18.752,0:07:22.108 Volatile stock market, getting negative[br]feedback, it is also immediate. 0:07:22.132,0:07:25.780 And the feedback in all these cases[br]is concrete, it's unambiguous; 0:07:25.804,0:07:28.309 you know if you've solved[br]the puzzles or not. 0:07:28.333,0:07:29.966 Now, the added one, 0:07:29.990,0:07:35.444 apart from this immediacy,[br]negative, this concreteness -- 0:07:35.468,0:07:38.069 now you have a sense of agency. 0:07:39.004,0:07:41.474 You were responsible for your decision. 0:07:41.974,0:07:43.426 So what do you do? 0:07:43.450,0:07:45.954 You focus on the foregone option. 0:07:46.327,0:07:47.979 You say, you know what? 0:07:48.003,0:07:49.795 I should have chosen the other tea. 0:07:49.819,0:07:52.605 (Laughter) 0:07:53.422,0:07:56.180 That casts your decision in doubt, 0:07:56.204,0:07:58.506 reduces the confidence[br]you have in the decision, 0:07:58.530,0:08:00.886 the confidence you have[br]in the performance, 0:08:00.910,0:08:03.181 the performance in terms[br]of solving the puzzles. 0:08:03.205,0:08:05.259 And therefore less juice into the task, 0:08:05.283,0:08:07.036 fewer puzzles solved 0:08:07.060,0:08:09.715 and less favorable outcomes[br]compared to you folks. 0:08:10.312,0:08:13.735 And this can happen in the medical[br]domain, if you think about it, right? 0:08:13.759,0:08:15.878 A patient in the driver's[br]seat, for example. 0:08:15.902,0:08:18.253 Less juice, which means[br]keeping herself or himself 0:08:18.277,0:08:21.801 less physically fit, physically active[br]to hasten the recovery process, 0:08:21.825,0:08:23.420 which is what is often advocated. 0:08:23.444,0:08:25.055 You probably wouldn't do that. 0:08:25.656,0:08:31.556 And therefore, there are times[br]when you're facing the INCA, 0:08:31.580,0:08:35.497 when the feedback is going[br]to be immediate, negative, concrete 0:08:35.521,0:08:37.117 and you have the sense of agency, 0:08:37.141,0:08:40.596 where you're far better off[br]taking the passenger's seat 0:08:40.620,0:08:42.350 and have someone else drive. 0:08:43.604,0:08:46.804 Now, I started off on a somber note. 0:08:46.828,0:08:48.867 I want to finish up on a more upbeat note. 0:08:48.891,0:08:52.001 It has now been five years,[br]slightly more than five years, 0:08:52.025,0:08:57.586 and the good news, thank God,[br]is that the cancer is still in remission. 0:08:58.618,0:09:00.343 So it all ends well. 0:09:00.970,0:09:07.135 But one thing I didn't mention[br]was that very early on into her treatment, 0:09:07.159,0:09:10.587 my wife and I decided[br]that we would take the passenger's seat. 0:09:11.071,0:09:13.066 And that made so much of a difference 0:09:13.090,0:09:15.865 in terms of the peace of mind[br]that came with that; 0:09:15.889,0:09:17.751 we could focus on her recovery. 0:09:17.775,0:09:20.706 We let the doctors make all the decisions 0:09:20.730,0:09:22.238 and take the driver's seat. 0:09:22.936,0:09:24.088 Thank you. 0:09:24.112,0:09:28.118 (Applause)