Wednesday, April 24, 2024

THINKER'S ALMANAC - April 24

What can the story of the Trojan Horse and a study about Halloween candy both teach us about human irrationality?


Subject: Reciprocity - The Trojan Horse

Event:  The Greek soldiers defeat the Trojans with a gift, 1184 B.C.


According to legend, the Trojans and the Greeks had been at war for ten years before the Greek hero Odysseus came up with a cunning strategy that was executed on this day in 1184 B.C. 


The Greeks first began by harvesting wood from Cornel trees, which were sacred to the Trojans, and began constructing a large horse as a gift for the Trojans, who also considered horses sacred.  Odysseus and a troop of his best warriors then climbed into the hollow belly of the horse as the remaining Greeks broke camp and boarded their ships, pretending to return home.


After watching the Greeks leave, the Trojans wheeled the giant horse inside the walls of the city.  Relieved to have the ten-year siege over, the Trojans celebrated boisterously.  Late into the night as the Trojans finally crawled to their beds in a drunken stupor, the Greeks lept into action.  As the Greek fleet turned around and returned to Troy, Odysseus and his men emerged from the Trojan Horse, opened the city’s gates, and began slaughtering the unsuspecting and groggy Trojans.



                                                                Image by 13smok from Pixabay 


No one knows for sure if the tales told of Troy in Homer’s Iliad are true.  Historians and archaeologists still debate the evidence; nevertheless, the story lives on as a powerful metaphor for cunning, strategic thinking.


The idea at the core of Odysseus’ genius was a psychological insight about the power of reciprocity, specifically the power of gifts.


In his book Predictably Irrational, behavioral economist Dan Ariely devotes an entire chapter to the powerful appeal of things that are free.  In normal transactions, our natural fear of loss keeps us reasoning; however, when we are offered something for free, we see no downside.  Unfortunately, like it did for the Greeks, a free gift can result in us losing our sober rationality.


To illustrate this, Ariely recounts an experiment he did one Halloween.  When the first costume-clad trick-or-treater arrived Ariely handed him three Hershey Kisses (each one contained .16 ounces of chocolate).  Before the child put the Kisses in his bag, Ariely offered him a deal.  He could exchange one of the Kisses for a small Snickers bar (1 ounce) or two Kisses for a large Snickers bar (2 ounces).  Following the logic that more is better, the child made the smart choice, exchanging .32 ounces of chocolate in exchange for the large Snickers (2 ounces).


Next, Ariely decided to introduce the “free gift” concept into the transaction.  The next trick-or-treater was initially given three Hershey Kisses.  He then was invited to make one of two possible exchanges.  First, he could exchange one Hershey Kiss for one large Snickers bar or he could have one small Snickers bar for free.  Logic would dictate that the first offer was better, an exchange of .16 ounces for 2 ounces of chocolate.  The child, however, captivated by the “free” option, took the one ounce Snickers bar.


When Ariely repeated the “free” option experiment with other trick-or-treaters and with students at MIT, roughly 70% took the free option over the better deal.  


The lesson here is to watch out for the power of “free,” for it can be a Trojan horse that blinds you to your normal rational thinking.  Marketers and salespeople know the magnetic power of “FREE!”  As Dan Ariely says, “The difference between two cents and one cent is small.  But the difference between one cent and zero [free] is huge!”


Recall, Retrieve, Recite, Ruminate, Reflect, Reason:  How did the Trojan Horse lead to victory? What percentage of kids in the trick-or-treat study take the free option?


Challenge - Trojan Horse Hucksters:  Do some research on the strategies that marketers and advertisers use to sell products to consumers.  What one strategy is especially effective?  Explain how this strategy is successful based on human psychology.


ALSO ON THIS DAY:


April 24, 1800:  On this day President John Adams approved an appropriation of $5,000 to purchase books, establishing the Library of Congress.  The books were ordered from London and a total of 740 volumes were housed in the U.S. Capitol in Washington, D.C. In 1814, invading British troops destroyed the library when they set fire to the Capitol Building.  In 1815, Congress accepted an offer by former President Thomas Jefferson to replace the library with his own collection of 6,487 books.



Sources:

1-”The Trojan Horse:  When True Intents Are Concealed.” Fs.blog

2-Ariely, Dan.  Predictably Irrational:  The Hidden Forces That Shape Our Decision. New York:  HarperCollins, 2008.


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