Mesmerized: With Guests Mara Rockliff & John List

11/07/22 • 35 min

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It seems like every other week there's a news report about how coffee will help you live longer or will shorten your life. There are similar reports about vitamins and water consumption and any number of other health-related studies. So why do we see so much conflicting information around scientific research in the media?

In this episode of Choiceology with Katy Milkman, a look at the slippery problem of separating correlation from causation.

You'll hear the fascinating story of Franz Mesmer and the apparently miraculous effects of what he dubbed animal magnetism. Author Mara Rockliff recounts the sway that Mesmer held over the Parisian public and how Benjamin Franklin transformed the scientific method in his quest to find the truth.

Mara Rockliff has written several books for young readers, including the multiple award-winning Mesmerized: How Benjamin Franklin Solved a Mystery That Baffled All of France.

Next, economics professor John List joins Katy to discuss the reasons why we confuse correlation and causation and explains the best practices for separating the two in the study of charitable giving, early childhood education, business, and policy.

John List is the Kenneth C. Griffin Distinguished Service Professor in Economics at the University of Chicago and the chief economist at Walmart.

Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

Investing involves risk, including loss of principal.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

The book How to Change: The Science of Getting from Where You Are to Where You Want to Be is not affiliated with, sponsored by, or endorsed by Charles Schwab & Co., Inc. (CS&Co.). Charles Schwab & Co., Inc. (CS&Co.) has not reviewed the book and makes no representations about its content.

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In this episode of Choiceology with Katy Milkman, a look at the slippery problem of separating correlation from causation.

Mara Rockliff has written several books for young readers, including the multiple award-winning Mesmerized: How Benjamin Franklin Solved a Mystery That Baffled All of France.

John List is the Kenneth C. Griffin Distinguished Service Professor in Economics at the University of Chicago and the chief economist at Walmart.

Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

Investing involves risk, including loss of principal.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

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Previous Episode

The Bad with the Good: With Guests Uzma Khan & Gustav Källstrand

You've probably caught yourself indulging after a workout or a game or a stretch of healthy eating. Maybe it was a pint or two after a soccer game or an extra piece of cheesecake after a vigorous hike. These indulgences are easier to justify after a healthy activity. Ironically, though, these indulgences can undo some of your hard work. So why do we tend to behave this way?

In this episode of Choiceology withKaty Milkman, a look at how we justify our decisions based on previous behavior.

Alfred Nobel was a very successful inventor and businessman. His invention of dynamite transformed industry and saved lives by reducing the use of dangerously unstable nitroglycerin. But his reputation suffered as he became associated with some of the negative uses of his creation.

Gustav Källstrand is the senior curator at the Nobel Prize Museum in Stockholm, Sweden. He tells the story of how Alfred Nobel accidentally read his own obituary (spoiler: it was not a positive story) and the efforts Nobel undertook to rescue his reputation.

Next, Uzma Khan joins Katy to explain why people use "good" behavior to justify "bad" behavior, and vice versa. She discusses her research into this compensating behavior and how it impacts everything from health to consumer choice to charitable giving.

Uzma Khan is an associate professor of marketing at the University of Miami.

Finally, Katy explains how this phenomenon relates to what Nobel laureate Richard Thaler calls mental accounting, where we tend to place time and money (and in this case morality and self-control) into accounts, even though they are fungible resources.

Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.[RP1]

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

Investing involves risk, including loss of principal.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

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Next Episode

The Power of Do-Overs: With Guests Jeff Ryan & Marissa Sharif

When you fail to reach a challenging goal, say, saving a certain amount of money each month or getting to the gym a certain number of times a week, it can be tempting to just give up on the plan entirely. But new research shows that building some flexibility into that plan can actually improve your chances of success.

In this episode of Choiceology with Katy Milkman, we look at how mulligans, skip days, cheat meals, and get-out-of-jail free cards are important strategies for sticking to your long-term goals.

In the era of pinball and video arcades, most games provided a limited number of turns or lives for every coin you put in the slot. When you ran out of lives, it was game over. You had to either walk away or pony up more money. That same limited-lives approach to game design followed in early home video game consoles. But in the 1990s, one company tried a new approach—and, in the process, changed the industry forever.

Jeff Ryan tells the colorful story of how Nintendo's Super Mario Bros. became a runaway success and influenced countless games to come.

Jeff Ryan is the author of Super Mario: How Nintendo Conquered America.

Next, Katy speaks with Marissa Sharif about research that shows that cutting yourself a certain amount of slack—or dipping into what she calls "emergency reserves"—when life gets in the way of your goals can make all the difference.

You can read more in the paper she co-authored with Suzanne B. Shu called Nudging Persistence After Failure Through Emergency Reserves.

Finally, Katy gives several useful examples of emergency reserves in the real world that can help you learn a language, stick to a diet, or get your daily steps in.

Choiceology is an original podcast fromCharles Schwab. For more on the series, visitschwab.com/podcast.[RP1]

If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.

Important Disclosures

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

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[RP1]This part will only be included in podcast apps.