Why we make bad decisions | Dan Gilbert

www.ted.com Dan Gilbert presents research and data from his exploration of happiness -- sharing some surprising tests and experiments that you can also try on yourself. Watch through to the end for a sparkling Q&A with some familiar TED faces.
TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes. TED stands for Technology, Entertainment, Design, and TEDTalks cover these topics as well as science, business, development and the arts. Watch the Top 10 TEDTalks on TED.com, at www.ted.com/index.php/talks/top10

[@tiekoe]

I wish more TED talk videos would include a discussion at the end, because that's where the proposed ideas are tested, scrutinised, and criticised by other great minds. It helps you put things in perspective. Often, stories sound too good to be true, and appear to have perfect logic, simply because you are not questioning them as you listen. Having an audience full of TED attendees do that for you and hearing what they have to say really adds to the experience.

[@TetsuroTsuyama]

Mathijs g. G g Tieken

[@mrmaniac3]

Agreed. It's too bad that many don't, but it's a good thing that they are all open to comment on KZbin... even though KZbin commenters aren't "great minds".

[@unenglishable]

30:04 was a great example

[@flappy7373]

i love that idea this would be the better decision for all media/mediums of discussion buuuuuuuuuuuuuuut.. people....

[@saviodias7747]

Mathijs Tieken, that would be absolutely fantastic. To have after each red talk a real life discussion where people ask questions, advice, more depth, come with real life cases and experiences!!

[@andyelliott8027]

I used to think i was indecisive, but now i'm not so sure.

[@maemaeii5060]

+andy elliott * slow clap *

[@andyelliott8027]

No, I'm not now. Well, maybe a bit occasionally.

[@SenseiEli]

Good one!

[@DiabeticPhysique]

U made my day

[@DarrenBonJovi]

back of the net!

[@beldonhuang]

The same as his other talks, Dan Gilbert never fails to surprise me with his exceedingly astonishing facts, while showing us the undeniably funny and foolish aspects of some of our behaviours.

[@chestbuster1987]

30:00 The guy makes a good point. The so-called 'rush' of playing a game is often better than actually winning it. Though the win would something like double that same rush

[@redtekMusicChannel]

Tamas Egyed I thought what the rush guy said was a lot more interesting and insightful than anything dan Gilbert said actually

[@BXJ-mi9mm]

Which is a perfect example of "ignorance is bliss." If the people actually realized how insanely stupid it is to play because you won't win, they wouldn't get nearly as big of a rush.

[@KM-eb5yo]

That dude probably owns shares in the lottery lmao

[@DlcEnergy]

Oh what a rush! I guessed the first 2 numbers again on one of my 100 tickets!! What are the odds of that!? lol Gambling is a waste of money. The "rush" is worthless. You can play a video game with fake money if you're not concerned about actually winning. They wouldn't pay if there was no prize for winning.

[@wholelottalight]

That second to last "question" was brutal and is so true.

[@ConsistenTea]

I don't know why so many people have disliked this video. This I think one of the most outstanding Ted Talk among others.

[@redtekMusicChannel]

shirish kirtiwar it’s too basic of a concept, and really long winded for a simple message

[@user-op2zc3jp4g]

Love TED intro, I don't need my ears anyway.

[@BXJ-mi9mm]

Too bad there is a dumb BMW ad. BMWs are so boring. Tesla is the only interesting luxury car maker.

[@tieshawilson9957]

😂😂😂😂

[@the12345smart]

Speaking about the plague...

[@jcorrea6515]

Lmfaooo 😂😂😂😂

[@samfortunato]

personally, i'd go as far as to say that this might be one of the more important TED talks released, & should have more views. dan's explanations on bad decision making IMO is just so incredibly fundamental to how all humans on this earth behave & respond, and understanding these behaviors could def. lead us to a more peaceful world.. his words during the talk at the video's end about "terrorism" i think are ENOURMOUSLY important insights for people today in actually dealing w/ matters like this

[@suzieqwonder3089]

This man is a gifted presentator ~ love his ‘real’ attitude!

[@anneatambo3231]

Watching in 2021 and thinking about the covid pandemic when he speaks at minute 25:00 about a plague. Profound clip!

[@TheFireflyGrave]

I wonder if part of the reason why people choose the $50 now vs. the $60 in a month is less about impatience and more about certainty. What if the subject forgets to pick up the $60 or the source of the money skips down or goes bankrupt? This factor may not enter into the parameters of the thought experiment but it could subconsciously influence the subjects decision. 'A bird in the hand is worth two in the bush' if you will.

[@xenod1066]

Good point. It could still be an error, but it is a learned response, as well as an evolutionary one. For early humans it was more likely that "tomorrow may never come.' For us, we may have learned not to trust. If you get that $50 now, you KNOW you've got it. If you wait, there is still uncertainty. - So it's not JUST impatience.

[@debbiewilley9428]

Exactly! It also relys on faith or trust that the offer will still be honored in a month.

[@infinityshutter]

Yeah, that's an incredibly bad way to gauge intelligence. The "right" answer is subjective for each individual given the context -- their current financial status or use for the money. It is a matter of significance for many -- would you prefer 5 cents now or 6 cents in 6 months? As it is an insignificant value, most people wouldn't care for either amount, let alone waiting for one. For most people, the difference of $10 is negligible, even if the difference is 20% more. Also, while many wouldn't be able to gain more than 20% interest in a month, it is wrong to assume no one can. Another reason for preferring the money sooner could be the anticipation of a "time sensitive" deal offering more than 20% savings (assuming the availability of the extra money was the catalyzing factor for the purchase). Could having an extra $50 now help you avoid a $30 late fee in some bill? In other words, the "right" answer is different for each individual case, especially as the question is phrased in a manner where the individual is expected to consider their current circumstances.

[@Blue_Buick]

But at least in my case, I trust, I really trust and I chose $60 bucks in a month and of course un 13 months. I think it is a small amount then... but maybe if it was millions, I would change my decision.

[@mincao8003]

I agree with this point. The speaker talks about the importance of context a lot during decision making and this clearly is a relevant context. Another thought, if you change the number to $5000 and $6000 respectively, I wonder whether that will make a difference.

[@dejureclaims8214]

Dan Gilbert just shot to a high position on my list of respected dudes.

[@vitis6252]

I cannot like this enough! Helps me immensely with one of my biggest problems - decision making

[@maemaeii5060]

You have more chance of dying on your way to the lottery than actually winning it.

[@samv7501]

People will gladly pay a dollar for hope.

[@kevinqhviananan-laulleeray8777]

You have an even better chance of drying while going elsewhere.

[@AnthonyGerardiAndroidWare]

MaeMae II then if you survive the triip and buy yhe ticket than you've beat the odds and wining the lotto becomes more feasable when you just won the survival lotto. Its a mute point and never ending circle

[@robertrussell8980]

feckin good odds if you are suicidal

[@tompson3]

This motivated me to go out and buy a lottery ticket

[@MrRobotman]

It feels like this entire TED talk was a warning of what social media and the Internet would do: Provide mankind with constant sources of instant gratification; completely available anytime and anywhere.

[@repsieximo]

The QA part at the end ROCKS! it starts at 24:00.

[@xxNikkeh]

Took a while to comprehend but when he began using realistic examples, wow.

[@mikesimmons3876]

Did you stick to being “woke”? I even asked out loud, “ depends how hungry I am” for the $25 burger lol. Stick with it, much to learn.

[@sharonchevalier922]

Mike Simmons & xxNikkeh I am about to watch and listen again. I will be more focused this time and take notes!

[@p.bamygdala2139]

However, on the $50 vs $60 question... you didn’t mention the factor of control. If you offered me money now or money later, I would take the money now and run. The $10 sacrifice, even accounting for interest, is insignificant to me because a lot can happen in a month, and you might not actually pay up. So the choice of payment now ensures that I actually get something. Something to think about. Thanks!

[@trumanphan2363]

P. B Amygdala it’s a controlled question. If you throw other factors in there, then obviously it will skew

[@andrewj22]

It doesn't really matter the reason. If the decision to wait a month were rational, then it wouldn't matter if that month were now or in a year from now. If the certainty of getting the money a month earlier is worth the cost, then it's worth that cost regardless of whether that month is now or later.

[@soulreaperichig0]

Well, in that case people should choose to get $50 in 12 months instead of $60 in 13 months because everything you said still holds true here as well.

[@mikelee7582]

Your final point "ensures that I actually get something" was my reason for choosing to go to the play after losing the ticket. If I already spent $20 on the play then I'm gonna see the play even if it's gonna cost me $40 I want to get something for the money I've already spent. If I lost one of 2 $20s then I might see the play or I might not. I haven't spent any money on it so then I've got to decide if it's worth my last $20.

[@Icix1]

Probably one of the best TED talks I've seen in a while. Bravo!

[@abhimanyu3704]

This is the best thing I've ever watched. Thank you. I'm blessed.

[@FreethinkingSecularist]

Dan gave me a gift...His book Stumbling on Happiness! I loved it.

[@WilsonSemilio]

That was a great talk! I truly love TED for publishing these.

[@techdedicated]

This is one of the best ted talks of all time. The value is here the odds of gain are more than the height of Mount Everest

[@Astutindocumentat]

"our brains were evolved for a very different world than the one in which we are living. they were evolved for a world in which people lived in very small groups, rarely met anybody who was terribly different from themselves, had rather short lives in which they had few choices and the highest priority was to eat and mate today." That explains the current society of pleasure and that's the half of what a human is. When a human explore it's needs to create and improve, the other half comes in.

[@dorothypierre754]

@30:00 Who is this Jay Walker guy? His take was spot on.

[@ashitakal9406]

it's a fantastic speaking, very informative man! TBO, I'm not a person easily moved by others, but man, you really provide some fun ideas to me and thank you with all my heart

[@JRockTheIII]

My mind gets blown every time I watch one of these. This one in particular blew me away...perspective concentrated. Thanks to this channel for exposing those of us who question objectively, to objective viewpoints that we must confront.

[@samanthasmith858]

I had to sit up and listening to Dan Gilbert's Bernoulli's obsession. He literally shredded marketers' strategies by a simple psychological and behavioral perspective! However, the big question tonight is: Are we that far in that we can barely see his point?

[@devindelgrego4500]

Mike from breaking bad taught me a lot. This was very interesting

[@Sephajinami]

I didn't even notice the resemblance until you said it. I can't unsee it XD

[@rickybindahoose6193]

He is what would happen if Walt and Mike fused into one ultimate meth dealer

[@craigbenz4835]

Mike and Walt are antithetical. I admired the Mike character, but despised the Walt one.

[@SuspiciousFace]

5:55 Walter White's backyard? 🤔🤔🤔

[@hanamontanafan2009]

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[@chrismclendon4937]

That guy from the crowd that made a comment at the end seemed to be really pissed that he referred to the lottery as a stupid tax. Haha.

[@DigitalAssassin]

Superb, wonderful talk. One of the best speakers I've heard, and he has something interesting & useful to talk about no less!

[@x4everkill3rx]

This is why i love TED Talks

[@dijviddijvid]

Good and bad are subjective, and each individual has his/her own definition of what good or bad is, I think.

[@robertlavelle2183]

I for one don't believe in good or bad but wholesome and unwholesome actions resulting in the like Karma

[@TimesNuRoman]

a great speaker, a great talk.

[@cinnamencoco1239]

the advice in the end was really inspiring

[@robertmaxwell797]

The answer to the 1st question optimizes my thoughts, excellent speaker

[@kellyberry4173]

Awesome lecture. One of the best I've found. Thank you. We needed that.

[@alis7135]

30:20 the voice of the man reminds me of Aaron from the Prince of Egypt

[@jjsiegal1]

Its seems to me that Bad Decisions come largely from Bad Information. Bad Input=Bad Output

[@ricardobjrnlund-larsen5250]

jjsiegal

[@captaingreen4367]

jjsiegal, however good input doesn't guarantee good output, perhaps people often jump the gun and assume they have all relevant information when in fact they do not.

[@jjsiegal1]

"We under-estimated the odds of our future pains, and over-estimated the value of our present pleasures...!"

[@SteveWoolman]

JUST LIES

[@ColonelFlickage]

One of those ones where you get to the end and just say wow

[@elmtree33]

Brilliant lecture! Thank you.

[@roelzylstra]

OMG, Aubrey de Grey out of nowhere at 31:55. Haha! Awesome!

[@CALLMECRAZY69]

Compliments Daniel Kahneman's Thinking Fast and Thinking Slow nicely.

[@Johnbruno02]

This was so very interesting. So many things to think about on a personal and professional level as a result of watching this.

[@PholoshoSeloane]

Thank you very much for the knowledge

[@102johnyuen]

This talk is very inspiring, I don't know why this get so much less views compared to other Ted talks

[@Plubb1984]

What an incredible speaker. Aside from the obvious, a thank you very much sir!

[@User0000000000000004]

Incredible idiot more like it

[@klumaverik]

Quite revealing. Thank you!

[@danielmontealegre566]

This man is so capable of opening people’s eyes

[@Mindsetolympics]

I definitely prefer being a long term thinker and beginning with the end in mind

[@jleb310ce]

This guy is such a great speaker!..i wish i could do that...

[@panda59043]

Dan is a pleasure to listen to and intelligent.

[@RatherPlayChess]

Burnouli. The man who invented the laws that allowed flight. I love that guy.

[@Sashazur]

Those kinds of laws aren’t invented - they’re part of nature already, but it takes a very smart person to see them and describe them.

[@francescospadolini]

Brilliant and eye-opening speech. It's incredible that we have all these bias. We should study more our bias and "how we work" in order to improve how we make decisions and our impact in the society.

[@just10tyson]

This is still more relevant than any other Ted talk

[@derekrogers1668]

Learned a lot from this mans speeches and book. Thank you

[@lizgichora6472]

Enjoyed the session, thank you!

[@p.bamygdala2139]

Fantastic! Thanks!

[@deepinthewoods]

Excellent talk, and it rings true. Another area in which we've not evolved as fast as the environment we've created.

[@test123ok]

one of the best TED talks!

[@vpatryshev]

This is amazing. Teaches to behave on stock market, way better than all those stupid books and tutorials and courses.

[@Hardik2heart]

Great topic and nice relevant examples... There is a rational thinking in humans but most of the times we tend to ignore and move ahead.

[@SuperGentleman96]

surprisingly interesting and very very informative. the man's got it!

[@BodaciousBurnley]

The Q & A session is more powerful than the actual talk! "If you had to solve one of these problem Chris which would you solve, terrorism or poverty?" Both are wonderfully convincing. I was told last year to buy "Stumbling on Happiness". After reviewing this talk, I don't have much of a choice do I?

[@METUBE09876]

Gave another perspective. Thanks.

[@vitor79pinto]

Amazing research work on us behaviour. Great speach and presentation

[@rsgirl10]

I love how the applauds was half it's size at 28:50… lol everyone was skeptical.

[@BoredErica]

Excellent. I thought I knew a bit on this topic but the speaker helped me think of things in a different and interesting way.

[@andy4an]

Excellent. I saw this a year ago and thought I understood it, but this was a great reminder.

[@gediosman6055]

Thank you.thank you.

[@debbiewilley9428]

Once again, fabulous speaker, fascinating subject! On the lottery ticket purchase, I figure the fantasy of winning is worth $1 in itself. Also, at that point, my odds of winning are basically the same as the person's who will eventually win. But because I know the odds of winning are astronomical, it's the reason I will only purchase 1 ticket; you have to play to win. (It works for me!)

[@TheHouseOffice]

Gosh this guy stimulates my brain like nothing else wow.

[@saschamrose6498]

18:30 it all depends on the needs in your life, if i dont really need $50 to survive for the month then i will wait for the $60 but if im in dire need of money for this month for instance to pay a bill and to avoid late fees then i will take the $50 dollars now and not wait a month for the $60

[@Neceros]

He got me almost every time!

[@makrofocus]

Great guest, great audience!

[@nalanala9725]

Thank you!

[@Ravikumar_Sharma]

32:00 is that a prosthetic hand.?

[@n0tfr0mth1sw0rld]

sooo good! so true and actually by the same point really sad!!

[@prodrivebrasil]

Excellent talk from Dan Gilbert and excellent intervention from "Jay Walker" at 30m02s (if I get that right). :)

[@KrishanBorwal]

Brilliant presentation.

[@happycows]

At 06:40 listen to what he says. Keep in mind this is a professional talking at Ted talk. You'll understand what I am saying if you are one of those affected. If you're not sure what I'm referencing then don't worry about it. You're not one of the affected.

[@OzcarMM]

No more half measures. Thanks Mike.

[@napalmhardcore]

Regarding the lottery. The payout is so huge compared to the price of entry that it makes the odds of winning irrelevant because no matter how small a chance you have of winning, you do have a chance and your ticket is just as likely to win as anyone else's. I've heard people say of something that could probabilistically happen at any given time "We won't see this in our lifetime or for millions/billions/trillions of years because the odds against it are astronomical". They overlook that it is just as likely to happen now as it is to happen at any arbitrary point in the future.

[@PrimoStracciatella]

Right. Winning the jackpot is as likely the first time you play as it is after playing for 30 years.

[@briannguyen1897]

I love John Oliver take on winning lottery. The chance is equal to getting bit by shark and hit by lightning at the same time.

[@sharonchevalier922]

brian nguyen This is true! You at me going at “John Oliver” and then I saw you were just here 3 weeks ago.

[@deadmansfire]

Awesome speech!Nothing more to say.(And BMW ad in the end really surprised me :D )

[@opheliaaf2457]

@30:58... well done!

[@alexwells6876]

This is the kind of TED talk that you learn a lot from, but you need to watch over and over to make it stick.

[@Malachiasz1983]

Wow! Jaw-Dropping Lecture! :) I wish all lectures on every university were so interesting and well performed as this one.

[@fixthepix18]

True

[@StephenDeagle]

Best Ted talk in a while.

[@ft1sesa]

I hope this is what i needed to start studying seriously

[@snacklish3795]

Wow... You took the words right out of my mouth, you are God sent

[@ft1sesa]

snacklish glad to do it. Greetings from kenya

[@snacklish3795]

Greetings from Kuwait :)

[@avatarv9817]

uk

[@PedanticNo1]

This is a brilliant lecture! Nothing more needs to be said, haha.

[@andyharris3376]

At 32 minutes he actually gives a solution for the issue at hand all that speaking less than 10 seconds of response.

[@l0vablelinda]

good questions from the interviewer

[@highway234]

i just started watching it and it'll have to be real impressive to beat the one from john hodgman but so far i'm impressed.

[@NYoumans]

it's about happiness because he's talking about, in a sense, the fabled equation for happiness. from what I understand, that's what behavioral economists study... how humans invest time, money, energy in search of happiness... what drives them to do so... and what we can do to manipulate that knowledge to our advantage. great talk.

[@GameAlot1231]

Great talk! Really facinating topic that makes you think :)

[@glaukus666]

Truly great.

[@Modenut]

Excellent talk.

[@BrianMack]

I've seen another vid with this guy. Makes interesting points.

[@Paulginz]

WOW, Someone who shares my point of view of the world! I couldn't have explained rational utilitarianism and how far we are from it better myself.

[@098anne]

Love the talk. It really doesn't help that there are far more entities that WANT the masses kept stupid.

[@CoxJoxSox]

This does have huge ethical implications for the media.

[@Jariid]

Nick Doe not when you look at the proportions of people who suck in the news compared to those who consider alternate issues. :D

[@CoxJoxSox]

Really - you think people think on that level? Did you know that 92% of COLLEGE GRADUATES don't even read a book each year? REALLY?