The Endowment Effect and the AI Inverse

The endowment effect is when we overvalue what we own, compared to equivalent items we don't. Think of your cousin who claims their copy of Amazing Spider-Man Annual Vol. 1 #21, The Wedding! issue where Peter Parker marries Mary Jane, is worth more than yours. While not a universal example, you've encountered people who hang on to what they own, not satisfied with any price other than their unrealistic one. This is also true of ideas. You only have to talk to an educator for half an hour, and they will share their solutions to common classroom management issues and instruction choices.

In reading The Elements of Choice: Why the Way We Decide Matters by Eric J. Johnson and  Quit: The Power of Knowing When to Walk Away by Annie Duke, I came across this idea in both books. Eric Johnson points out that the endowment effect can make decisions harder, and that people who design choices can leverage it through default choices. He mentions studies where a choice can be changed after new information is given, and most people will generally stick to their original choice. This aligns to how Annie Duke discusses the issue, that we are so tied to our own choices that we have a hard time quitting, as you would be 'quitting' yourself in a way. There are a variety of factors she mentions in why we don't quit a course of action, from our choices informing our identity, to the 'katamari' effect (sunk cost fallacy) of past decisions building to today's state, and the endowment effect.

I've talked before about my reasons for reading these two books, and their intertwined ideas about making choices and 'unmaking' them (quitting) keep pointing to new questions to mull over in relation to my teaching. 

• What choices and beliefs do students have that they 'overvalue' instead of others?
• What behaviors and practices are students tied to that don't support their learning?
• Are there new 'identities' students can take on in my class that will help them see themselves as learners and researchers? (Others have talked about a person's 'math identity' in persuasive ways.) 

At the same time I am seeing many students doing the opposite; overvaluing what AI will produce instead of their own thinking and learning. There is a simplistic idea that AI will produce correct and accurate results, which isn't true. The efficiency trap comes into play, as many students need to get a variety of tasks accomplished, and see AI as an efficient solution to many of them. Unfortunately learning only happens when we truly engage with concepts, not pass them off to other entities to do our thinking for us. 

So why don't students prioritize their own thoughts over AI's? As efficient actors students are looking to conserve time, money, and energy. Thinking requires all three, so it isn't a matter of having something, but rather doing something. That is where insecurities about doing the 'right' thing, looking 'dumb', and a host of other fears come up. Those are social, interpersonal, and intrapersonal dynamics that I don't think the endowment effect gets to.

So are there things educators can do to get students to 'quit' unproductive behaviors that they may be tied to? I think the answer is yes, but likely requires both a goal and a belief that what you are doing will get you to that goal. This is something I talk about with students, as humans won't do hard things if they don't know why, or where this is going. Being transparent about what topics and computations will be necessary in future courses seems to address some of these fears. At the same time students who are motivated by a future state, who know what program they are pursuing, what they want to do, generally don't need me to help frame what we learn or motivate them. 

Default choices are really our past choices writ today. What are things I can do in my classes to change the default choice to one where students are sitting down after class and answering a few math questions, or reading a textbook? One idea from The Elements of Choice is 'streaks', doing an action or activity and recording doing it in the same place. Over time you will have completed it on consecutive days, providing a sense that a person can't break the streak. (This seems tied to the sunk-cost fallacy, that all those past days would be 'worthless' (not true) if you don't continue the activity.) How could I include something where students record doing something related to the course each day of the week? (I have thoughts and will share them in a future post.) What does an AI-free streak look like? (Unfortunately no thoughts there.)

What are other ways educators both push students away from unhelpful behaviors, and pull them towards their future self? Both seem hard given the distractions they have on a daily basis, and the future looking a little grim right now. Hope springs eternal, and I hope you can share some of yours.