Saturday 18 May 2013

Neuroeconomics: Eyes, Brain, Business


At first glance, a neuroscientist and a business school might seem an odd fit. But in fact economists have been paying increasing attention to how the brain works. Christine Looser discusses her research on how the brain detects aliveness and the possible implications for organizations and advertisers.
 
The children's classic The Polar Express tells the fanciful story of a young boy's journey to the North Pole on a train filled with chocolate and candy. But when Warner Brothers released a $165 million computer-animated version of the tale, many critics described the film not as a happy Christmas fantasy but as a horror movie. "This season's biggest holiday extravaganza, 'The Polar Express,' should be subtitled 'The Night of the Living Dead,' " groused CNN reviewer Paul Clinton. "If I were a kid, I'd have nightmares," wrote Geoff Pevere in the Toronto Star.
“What I'm interested in is how and why the brain evolved to pay attention to other people.”
The problem was that while the film's characters appeared astonishingly human in many ways, their eyes looked lifeless. Viewers were creeped out.
Humans are often delighted by objects with vaguely humanoid characteristics—think Pet Rocks, toy robots, or sock puppets. But there is a point at which an object looks almost human, yet not quite human enough, and the result is disturbing. It's called the uncanny valley. And for Christine Looser, it's the starting point for a line of research aimed at discovering how our brains detect life, and how we distinguish the cognizant from the mindless.
"What I'm interested in is how and why the brain evolved to pay attention to other people," says Looser, a fellow at Harvard Business School who sports a PhD in cognitive neuroscience.
At first glance, a neuroscientist and a business school might seem like an odd fit. But the fact is that the business world has been paying increasing attention to how the brain works. The field of neuroeconomics has gained ground in the past 10 years, with work exploring the brain processes that underlie decision-making. There is the nascent but fast-growing field of neuromarketing, which uses brain-tracking tools to determine why consumers prefer some products over others. And there is neuroleadership, which applies neuroscience to management research. Looser is looking to integrate insights from social psychology, neuroscience, and business. "The big-picture question for me is in how we interact with other people," she says. "It's hard to come up with any business transaction you can do alone."

The tipping point of animacy

Specifically, Looser is interested in what happens to our minds when we perceive that something is alive and socially relevant. The importance of that process goes far beyond box-office results for CGI (computer-generated imagery) films. In fact, the ability to distinguish the animate from the inanimate may be the brain's most important survival mechanism, argues Looser, noting that there is good evidence that our minds work entirely differently when dealing with people as opposed to objects.
"You have to monitor people more than other things," she says. "As an extreme example, I don't have to worry about that coffee cup unless you pick it up and throw it at me. People have to be both remembered and understood so that we can predict what they're going to do in the future. How your brain does that is what's interesting to me—when it works well, when it fails, and how it can influence the decisions we make."
To determine the point at which humans recognize the impression of life, or animacy, in a face, Looser conducted a series of experiments in cooperation with her PhD advisor at Dartmouth College, psychology professor Thalia Wheatley. (They detail their findings in The Tipping Point of Animacy: How, When, and Where We Perceive Life in a Face, published in the December 2010 issue of Psychological Science.)
The researchers used morphing software to create a visual continuum of animacy, with images of doll faces at one end of the spectrum and images of similar human faces at the other. The images in between were morphed combinations of real and fake, which each successive iteration containing a higher percentage of human face. In total, they created 220 morphed faces.
Sixty college students were asked to evaluate each face on the continuum for two attributes: animacy (on a scale of 1, "definitely alive," to 7, "definitely not alive") and pleasantness (from 1,"very unpleasant," to 7, "very pleasant"). In a related experiment, 29 of the participants returned two months later to repeat the same experiment, but this time they were asked to gauge whether a face could formulate a plan, feel pain, and had a mind.
The results showed that participants' perceptions of aliveness didn't track linearly with the morphing continuum. Rather, they tended to deem faces "definitely not alive" for the majority of the continuum, perceiving life only when the morphed face was almost entirely human. "People are really hypersensitive to what makes something look alive," Looser says.


Source:http://hbswk.hbs.edu

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