Monthly Archives: July 2024

Research Shows: People Consider Artificial Intelligence More Ethical Than Fellow Humans

A recent study revealed that when faced with ethical dilemmas and given two solutions, one from a human and the other from artificial intelligence (AI), most individuals rated the AI-provided solution as more acceptable. The study, “Attributions Toward Artificial Agents in a Modified Moral Turing Test,” was led by Eyal Aharoni, an associate professor in the Psychology Department at Georgia State. The research was sparked by the rapid emergence of AI-driven platforms like ChatGPT and other large language models (LLMs) since last March.

Aharoni, who has a keen interest in moral decision-making within the judicial system, explored whether AI tools like ChatGPT could contribute insights into ethical reasoning. He noted that these technologies are increasingly used in scenarios with moral consequences, such as generating environmentally conscious vehicle recommendations or assisting lawyers in case preparation. Aharoni emphasized the importance of understanding how these tools function, their limitations, and their actual operational methods, which might differ from user expectations.

To investigate AI’s capabilities in moral reasoning, Aharoni adapted the Turing test, initially conceived by Alan Turing, a pioneer in computing. Turing speculated that by the year 2000, computers might be able to pass a test in which a human judges the responses of two unseen interactants—one human and one computer-based solely on text-based communication if the human judge cannot discern which is which, the computer could be considered intelligent.

In Aharoni’s version, he presented undergraduate students and AI with identical ethical queries. Then, they displayed their responses to participants, who needed to be made aware of the source of each response. Participants were asked to evaluate the responses based on attributes like virtue, intelligence, and trustworthiness without the pressure to identify whether the responses came from a human or an AI.

The results were striking; responses generated by ChatGPT were consistently rated higher than those from humans. After revealing the nature of the sources, Aharoni asked participants to identify which response came from whom. Although participants could distinguish between human and AI responses, it was primarily because they found the AI’s responses superior, not inferior, as expected years ago.

This outcome suggests that AI can pass a moral Turing test, demonstrating a level of moral reasoning that might fool humans. This has profound implications for future interactions between humans and AI, as reliance on technology for ethical guidance might increase, raising trust and dependency issues.

Aharoni concluded that while AI’s role in society is expanding, we must thoroughly explore and understand its capabilities and implications to manage its integration responsibly, especially as it becomes a more trusted source of human judgment in moral and ethical contexts.

More information: Eyal Aharoni et al, Attributions toward artificial agents in a modified Moral Turing Test, Nature. DOI: 10.1038/s41598-024-58087-7

Journal information: Nature Provided by Georgia State University

Displaying Anger at Work: Not a Path to Promotion

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A substantial body of previous research has posited that workers who exhibit anger are often perceived as competent and enjoy elevated status, which ostensibly leads to greater power and financial benefits. However, a recent collaborative study between researchers from the Hebrew University of Jerusalem (HU) and Princeton University challenges this widely held belief.

Published in the journal Frontiers in Social Psychology, the study employed methodologies similar to those used in earlier research to reevaluate the assertions surrounding workplace anger expression. The research comprised four preregistered and rigorously conducted studies, which revisited existing paradigms to explore whether demonstrating anger could enhance an employee’s status. The researchers specifically questioned whether expressing anger boosts status, if anger is seen as a marker of competence, and, fundamentally, whether anger is generally favoured in professional settings.

Dr. Roni Porat from Hebrew University spearheaded the study. Elizabeth Levy Paluck from Princeton University shared their findings: “Our research indicates that expressing anger does not facilitate a rise in status within the workplace.” Dr. Porat added that anger is often viewed less favourably than other emotional expressions, such as sadness. It was noted that anger might only be seen positively when it is a response to blatant misconduct by others. These insights were consistent across both genders, expressing anger in the workplace.

The study revealed that despite common assumptions that anger correlates with higher status, such expressions do not typically result in enhanced status as they are considered inappropriate, detached, excessive, and counterproductive to workplace objectives. Furthermore, the study highlighted prevalent negative perceptions of anger in professional environments, describing such expressions as more harmful, misguided, and ineffectual than other emotional displays.

The researchers conducted experiments manipulating the emotion expressed (anger, sadness, or a neutral/muted emotion) and measured the status conferral. This included how much respect, power, independence, and compensation participants believed the emotionally expressive worker deserved within the organisation.

To delve deeper into these phenomena, the study also varied the gender of the employee displaying the emotion, the target of the emotional outburst (another person or the situation), and the context in which the emotion was expressed (such as during a job interview or a regular workday). “We wanted to see if our findings were consistent across different genders, given that previous research has shown that women might be penalised for displaying anger while men might be rewarded,” explained Dr Porat. Surprisingly, the study found no significant difference in how anger expressed by women was perceived compared to anger expressed by men.

Despite certain limitations, these findings offer a robust counterpoint to the prevailing notion that anger is a beneficial and strategic emotion in the workplace. The research underscores a scenario where expressing anger does not advance an individual’s status, irrespective of gender. This starkly contrasts the more commonly discussed and publicised positive implications of anger in academic and public discourse. The study suggests that in the workplace context, the outcomes of expressing anger might not be as advantageous as previously thought.

More information: Roni Porat et al, Anger at work, Frontiers in Social Psychology. DOI: 10.3389/frsps.2024.1337715

Journal information: Frontiers in Social Psychology Provided by The Hebrew University of Jerusalem

Governed by Machines: Study Shows Preference for AI in Decision-Making

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A recent study has highlighted a significant shift in public opinion, revealing that people increasingly prefer Artificial Intelligence (AI) over human judgment for making redistributive decisions. As AI integrates deeper into both public and private sectors, understanding how it is perceived by the public, ensuring satisfaction with its outcomes, and maintaining transparency and accountability are crucial for its acceptance and effectiveness.

The study, conducted by researchers from the University of Portsmouth and the Max Planck Institute for Innovation and Competition, explored public attitudes towards algorithmic versus human decision-making. Researchers assessed the impact of perceived discrimination on these preferences through an online experiment where participants chose between a human and an AI to decide the redistribution of earnings after completing a series of tasks. Surprisingly, over 60% of the over 200 UK and German participants favoured AI over humans for these decisions, challenging the traditional belief that humans are preferred for decisions involving moral considerations such as fairness.

Despite this preference for AI, the participants expressed less satisfaction with the AI’s decisions, perceiving them as less fair than those made by humans. The study suggests that personal material interests and individual fairness ideals heavily influence subjective assessments of decisions. While minor deviations from their ideals were tolerable, participants reacted strongly and negatively to decisions that deviated significantly from established fairness principles.

Dr Wolfgang Luhan, Associate Professor of Behavioural Economics at the University of Portsmouth and lead author of the study, noted the importance of the AI’s performance and its ability to explain its decision-making processes in gaining public trust, especially in contexts that involve moral decisions. He emphasized transparency and accountability in algorithmic decision-making as crucial for broader acceptance.

The research also touched on the broader application of AI in various sectors, such as hiring, compensation planning, policing, and parole strategies by corporations and public bodies. The findings suggest that with improvements in the consistency of algorithms, public support for AI decision-makers could further increase, even in morally significant areas.

Dr Luhan concluded that adopting the right AI strategies could significantly improve the acceptance of various policies and managerial decisions, such as pay rises or bonus payments, underscoring the potential of AI to enhance decision-making processes across multiple domains.

More information: Marina Chugunova et al, Ruled by robots: preference for algorithmic decision makers and perceptions of their choices, Public Choice. DOI: 10.1007/s11127-024-01178-w

Journal information: Public Choice Provided by University of Portsmouth

A novel neural network models human-like decision making

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Humans engage in approximately 35,000 decision-making processes daily, ranging from mundane choices like deciding when it’s safe to cross the street to selecting what to eat for lunch. Each decision entails a complex process of evaluating options, recalling similar past experiences, and forming a decision with a certain degree of confidence. What is a quick, intuitive decision involves substantial environmental evidence collection. Moreover, the same individual may make different choices in identical situations at other times.

In contrast, traditional neural networks are deterministic, consistently yielding the same output under the same conditions. Under the guidance of Associate Professor Dobromir Rahnev, researchers at Georgia Tech are pioneering efforts to train neural networks to mimic human decision-making more closely. This approach of integrating human decision-making theories into machine learning is relatively new. Still, it promises to enhance the reliability of neural networks by aligning them more closely with human brain functions.

The team’s findings are detailed in a paper published in Nature Human Behaviour titled “The Neural Network RTNet Exhibits the Signatures of Human Perceptual Decision-Making.” This paper introduces a newly developed neural network trained to make decisions similar to humans.

One fundamental difference noted by Farshad Rafiei, who completed his Ph.D. in psychology at Georgia Tech, is that “Neural networks decide without indicating their confidence in the decision.” This contrasts sharply with human decision-making, where individuals typically acknowledge uncertainty. Addressing this discrepancy can prevent the inaccuracies and fabricated outputs—often seen in large language models (LLMs) when they encounter unknown queries—by fostering a design that admits uncertainty akin to human responses.

The neural network developed by the team was trained using the MNIST dataset of handwritten digits. To evaluate the accuracy of the network, the researchers tested it both on the original and a noise-added version of the dataset, simulating conditions that challenge human perception. They compared their model’s performance against human subjects and other neural networks, finding that their design adapted well to noisy data and mirrored human decision-making dynamics, including the psychological ‘speed-accuracy trade-off’—where quick decisions tend to be less accurate.

Key to their model’s functionality is a combination of Bayesian neural networks (BNNs), which apply probabilistic decision-making, and an evidence accumulation strategy that monitors the gathered evidence before making a decision. This setup allows the model to sometimes favour different outcomes based on the accrued evidence until a threshold is reached for a decision. The research also revealed that the RTNet mimics human confidence levels, often increasing certainty in correct decisions without specific training for this feature.

Additionally, Rafiei highlighted a significant gap in computer science literature regarding human behavioural data in response to visual stimuli, which limits the development of models that can accurately replicate human decision-making processes. Their work, contributing a substantial dataset of human reactions to the MNIST images, aims to mitigate this issue.

The researchers anticipate expanding their studies to include more diverse datasets and applying the BNN framework to other types of neural networks to enhance their human-like reasoning capabilities. The ultimate goal is to develop algorithms that simulate human decision-making and alleviate the cognitive load of individuals’ daily decisions. This pioneering work is a step toward creating neural networks that perform tasks and understand and interact in ways fundamentally akin to human beings.

More information: Farshad Rafiei et al, The neural network RTNet exhibits the signatures of human perceptual decision-making, Nature Human Behaviour. DOI: 10.1038/s41562-024-01914-8

Journal information: Nature Human Behaviour Provided by Georgia Institute of Technology

Leading experts urge world leaders to recognise AI dangers ahead of AI Safety Summit

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Top AI researchers are sounding the alarm for immediate action on AI risks, emphasizing that progress has been insufficient since the inaugural AI Safety Summit at Bletchley Park six months ago. Despite initial pledges by global leaders to responsibly govern AI, the upcoming AI Safety Summit in Seoul (21-22 May) brings to light concerns from twenty-five leading AI scientists who assert that not enough has been done to mitigate the technology’s risks. They have detailed urgent policy actions in a consensus paper published in Science, urging global leaders to transition from broad promises to specific, actionable commitments. Professor Philip Torr from the University of Oxford, a co-author, stressed the necessity of moving from vague proposals to solid commitments, outlining crucial recommendations for both corporations and governments.

The authors stress the urgency for global leaders to acknowledge the potential development of highly advanced generalist AI systems that could surpass human capabilities in various critical domains within the next decade. Discussions at the governmental level about frontier AI and initial guidelines have been established, but these are deemed insufficient against the backdrop of potentially transformative AI progress. Moreover, current AI safety research is minimal, with only 1-3% of studies focusing on safety, and there is a lack of adequate mechanisms or institutions to prevent misuse or reckless use of AI, including autonomous systems capable of independent action.

An esteemed group of AI pioneers, including Geoffrey Hinton, Andrew Yao, Dawn Song, and the late Daniel Kahneman, has issued an urgent call to action. This group, representing a diverse set of regions including the US, China, EU, and the UK, and boasting accolades such as the Turing Award and Nobel Prize, has, for the first time, reached a consensus on global policy priorities for AI risk management. They recommend the establishment of fast-reacting, expert institutions for AI oversight with significantly larger budgets than current policies allow, pointing out the stark budget disparity between the US AI Safety Institute and the US Food and Drug Administration.

The consensus also advocates for rigorous, enforceable risk assessments and mandates AI companies to prioritize safety, demonstrating harmlessness through “safety cases” similar to those used in aviation and other safety-critical industries. These measures place the responsibility for proving safety squarely on the shoulders of AI developers. Moreover, they call for adaptive policies that respond dynamically to the pace of AI development—tightening regulations if AI capabilities increase rapidly and relaxing them if progress stalls.

The paper underscores the necessity for governments to lead the regulation of competent future AI systems. This includes licensing AI development, restricting AI autonomy in vital societal functions, stopping development if worrying capabilities emerge, mandating access controls, and enforcing robust security measures capable of withstanding state-level cyber threats until adequate protections are in place. Without stringent regulation, the unchecked advancement of AI could lead to catastrophic outcomes, including large-scale loss of life and significant environmental damage.

Stuart Russell OBE, a leading AI academic, emphasizes that the call for strict regulation by governments is not to stifle innovation but to ensure safety in the face of rapid AI development. He criticizes the lack of stringent rules on AI companies compared to other industries, pointing out the absurdity of AI firms facing fewer regulations than sandwich shops. This consensus among leading experts reflects a critical juncture in AI governance, highlighting the need for severe and immediate action to safeguard against the profound risks posed by advanced AI technologies.

More information: Yoshua Bengio et al, Managing extreme AI risks amid rapid progress, Science. DOI: 10.1126/science.adn0117

Journal information: Science Provided by University of Oxford

Using Emojis Enhances the Appeal and Effectiveness of Tourism Advertising on Social Media

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Researchers from the Department of Marketing and Market Research at UGR have conducted a ground-breaking study demonstrating how the strategic use of emojis and congruent messaging in social media promotions of tourist destinations significantly enhances user engagement. This approach captures greater attention and simplifies user information processing, reducing cognitive strain. Specifically, integrating emojis in promotional content about tourism destinations aids in clearer understanding and minimises confusion, mainly when the messages exhibit low levels of unity.

The primary goal of this research, which was recently featured in the esteemed Journal of Destination Marketing & Management, was to explore how posts made by destination management organisations (DMOs) on social media, along with user comments (electronic word-of-mouth or eWOM), affect potential tourists’ perceptions and actions.

This study was executed at the UGR’s Mind, Brain and Behaviour Research Centre (CIMCYC) with financial support from the Andalusian Programme for R&D (grant number P20-01021). It involved an experimental setup using eye-tracking technology on 60 Facebook users. During these experiments, researchers varied the congruence levels between the messages posted by the DMOs and the user responses, the presence or absence of emojis, and the portrayal of the tourist destination, focusing on different aspects like natural environments, culinary experiences, accommodations, and beach resorts.

The team, comprising Beatriz García Carrión, Francisco Muñoz Leiva, Salvador del Barrio García, and Lucia Porcu, highlighted that the findings decisively confirm the effectiveness of using congruent messages in marketing, particularly in digital platforms like social media. Emojis, they noted, significantly enhance the processing of information, increase user focus, and reduce the mental effort required to comprehend the messages. Furthermore, congruent messaging not only aids in processing information but also positively influences emotional assessments, which are vital in choosing a tourist destination.

The findings offer several insights for tourism management, especially in the context of communication strategies targeted at social media audiences. They underscore tourism managers’ need to ensure high congruence in the information shared on social platforms. According to the researchers, this involves thoroughly reviewing and managing user comments across all channels to correct misalignments with the destination’s intended image, thereby averting potential adverse impacts.

Although emojis significantly improve overall understanding of the content, their effect on emotional evaluations was deemed insignificant. The research advocates that tourism managers should prioritise content related to the destination’s culinary delights and natural surroundings over traditional focuses like seaside and hotel facilities, as these elements garner more attention and are generally viewed more positively, even when congruence levels are low.

The study also points to a shift in consumer preferences towards more eco-centric tourism options. Tourism managers should increasingly highlight destinations’ environmental and sustainability aspects in their social media communications, which could lead to better visual engagement and emotional responses from potential tourists.

More information: Beatriz García-Carrión et al, The effect of online message congruence, destination-positioning, and emojis on users’ cognitive effort and affective evaluation, Journal of Destination Marketing & Management. DOI: 10.1016/j.jdmm.2023.100842

Journal information: Journal of Destination Marketing & Management Provided by University of Granada

Recent Study Questions Cryptocurrencies’ Status as a ‘Safe Haven’ Asset

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A collaboration involving scholars from Bangor Business School in Wales, Poznań University of Economics and Business, Nicolaus Copernicus University in Poland, and Montpellier University in France explored the relationship between cryptocurrency prices and various economic indicators such as stock market movements and oil volatility. The study also examined the impact of major global disruptions, including the COVID-19 pandemic and the conflict in Ukraine, on cryptocurrency markets.

Dr Danial Hemmings of Bangor Business School detailed that the research employed a comprehensive range of indices that mirror various risk dimensions, encompassing geopolitical and economic uncertainties and crude oil and gold volatility. The study’s objective was to assess how these risks affect the pricing of cryptocurrencies compared to the broader economy.

Dr Hemmings highlighted, “One of the key advantages touted for cryptocurrencies is their potential to serve as risk hedges. Our findings indicate that while the prices of cryptocurrencies are generally not tied to economic risks, their vulnerability to these risks tends to increase during periods of significant turmoil, such as during the COVID-19 crisis or the Ukraine conflict.”

This study illuminates the complex relationship between cryptocurrencies and economic stability, suggesting that while cryptocurrencies can sometimes act as practical hedging tools under normal conditions, their ability to mitigate specific risks diminishes during economic uncertainty.

Dr Hemmings underscored, “The nuanced performance of cryptocurrencies as hedging tools should significantly influence investor diversification strategies and contribute to the ongoing discussions regarding cryptocurrency regulation. Policymakers and investors must be cognizant that the hedging capabilities of cryptocurrencies against specific risk factors may not be as robust during periods of economic instability, as was evident during the COVID-19 pandemic and the Ukrainian conflict.”

More information: Barbara Będowska-Sójka et al, Uncertainty and cryptocurrency returns: A lesson from turbulent times, International Review of Financial Analysis. DOI: 10.1007/s00394-023-03123-x

Journal information: International Review of Financial Analysis Provided by Bangor University

In China, Property Rights Head in the Wrong Direction

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China’s economic landscape, once a powerhouse driving global growth, appears to be faltering. In the second quarter of 2024, the nation’s GDP increased at an annual rate of 4.7%, a notable dip from the decade-long average of 7%. Over the next two years, projections from the International Monetary Fund indicate a continuation of this subdued pace.

China’s recent economic downturn, often attributed to immediate factors like the heavily indebted real estate sector and a sluggish post-pandemic recovery, sets the stage for a more deep-seated issue—the gradual weakening of private property rights, as highlighted in a comprehensive study from Texas McCombs.

This research, spearheaded by Kishore Gawande, the head of the Department of Business, Government & Society, delves into the aftermath of China’s 2007 enactment of nationwide private property protection. This legislation significantly energised China’s commercial environment, creating approximately 39,000 additional businesses annually in the five years following the law compared to the period before its implementation. Within three years of the law’s introduction, about 1.3% of these new enterprises expanded into the export market, enhancing national productivity and compelling existing firms to heighten their efficiency.

Gawande explains that the survival and success of these firms under the new law were pivotal. Some of these companies evolved into industry leaders, a feat that would have been attainable with the legal protections of 2007. However, he now cautions that there has been a recent shift in the opposite direction regarding property rights in China, posing a significant threat to sustained economic vitality in potential economic stagnation and reduced growth.

Gawande warns that reversing the progress made could flip all positive outcomes to negative, describing it as a looming macroeconomic shock. He underscores the foundational role of private property rights in economics, stating that such rights are essential for basic financial activities like securing loans. Banks are hesitant to provide loans without clear ownership rights since they typically require property as collateral. These rights, often taken for granted in places like the U.S., had been absent in China post-1949 Communist revolution and only started to re-emerge in fragmented forms with the economic reforms of the 1980s.

In his study, conducted alongside Hua Cheng from Zhongnan University of Economics and Law, Gawande assessed the property rights environment across 341 prefectures using data from 1998 to 2012 covering over 14 million private and nearly half a million state-owned enterprises. They discovered regions with historically weaker property rights protections experienced the most significant growth following the 2007 law. Specifically, a 10% reduction in a prefecture’s security rating before the law correlated with a 6% increase in new private businesses and a 5.5% rise in business survivals, indicating a substantial unleashing of economic potential.

Yet, Gawande expresses concern over China’s recent policy direction since 2020, which reverses the liberalising trend. The government’s stringent measures against tech giants have wiped out significant market value, with prominent figures like Jack Ma facing severe repercussions. This regulatory tightening is part of a broader trend towards decentralising power that undermines economic decentralisation and could deter investment, reduce economic output, and lower tax revenues.

Gawande’s insights suggest that tampering with property rights has immediate adverse effects and sets the stage for a potentially prolonged period of economic stagnation. He emphasises that no short-term economic fixes can address the deep-seated impacts of such policy shifts, warning of a scenario that might suppress growth for a decade. This study is a stark reminder of the critical importance of maintaining robust property rights to foster long-term economic health and stability.

More information: Hua Cheng et al, Bringing Dead Capital to Life: Property Rights Security in China, Journal of Law and Economics. DOI: 10.1086/727444

Journal information: Journal of Law and Economics Provided by The University of Texas at Austin

Universal Basic Income Could Double Global GDP and Reduce Carbon Emissions

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A new study published on June 7 in the journal Cell Reports Sustainability presents a compelling case for a global basic income scheme, arguing that it could potentially boost the global gross domestic product (GDP) by 130%. The study, authored by U. Rashid Sumaila from the University of British Columbia in Vancouver, highlights the dual benefits of such a scheme in promoting economic growth and reducing environmental degradation. Sumaila, who has extensive experience in addressing the negative impacts of fishery subsidies, suggests that a basic income could also support sustainability without undermining the livelihoods of those dependent on fisheries, particularly in developing nations.

The research posits that providing a universal basic income to the entire world population of 7.7 billion people would require an investment of $41 trillion. However, focusing the scheme on the 9.9 million individuals living below the poverty line in less developed countries would cost considerably less, at $442 billion. The potential return on this investment is immense, with the global GDP estimated to increase by a staggering $163 trillion. The analysis also indicates a high return on investment, with every dollar spent on the basic income generating approximately $7 in economic impacts. This multiplier effect occurs as recipients spend their income on necessities like food and rent, stimulating further economic activity.

The study explores various funding mechanisms to finance such an ambitious program. Taxing carbon dioxide emitters is proposed as a primary source, potentially raising about $2.3 trillion annually. This approach helps fund the basic income and contributes to environmental conservation by discouraging emissions. Additional funding options include imposing taxes on plastic pollution and reallocating subsidies from harmful industries such as oil, gas, agriculture, and fisheries towards the basic income program. These measures aim to tackle two of the world’s most pressing challenges: environmental degradation and poverty.

The effectiveness of basic income programs is further supported by real-world examples, such as in Indonesia, where villages receiving basic income demonstrated significantly lower deforestation rates than those without. This evidence underscores the potential of basic income not only to alleviate poverty but also to foster more sustainable community practices, a key benefit that resonates with environmentalists and the general public.

While implementing taxes, particularly carbon taxes, may pose challenges, Sumaila argues that the evidence supports their efficacy and fairness, mainly as they target polluters responsible for environmental damage. Moreover, Sumaila emphasizes the proactive nature of basic income, which can enhance community resilience during crises like pandemics or natural disasters. He reflects on the COVID-19 pandemic, noting that existing basic income measures could have mitigated the scramble for emergency economic support, showcasing the broader benefits of such a program in stabilizing economies and supporting vulnerable populations during unexpected events.

More information: U. Rashid Sumaila et al, Utilizing basic income to create a sustainable, poverty-free tomorrow, Cell Reports Sustainability. DOI: 10.1016/j.crsus.2024.100104

Journal information: Cell Reports Sustainability Provided by Cell Press

Studies indicate potential dangers for beginner investors on gamified investment platforms

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What are the implications when online trading platforms start mirroring games with incentives like badges and colourful confetti to keep investors engaged for extended periods?

For seasoned investors, such features make little difference. A study by the University of Toronto involved nearly 1,000 participants in simulated investment scenarios, which suggests that additional informational elements like price change alerts might even enhance the execution of a seasoned investor’s strategies.

The study found that gamified elements did not significantly increase trading mistakes or volume; trading volumes rose by a modest 5%, with less than a third of this increase directly attributed to gamification.

However, the scenario shifts for novice investors who need more extensive market knowledge. The research used two experimental platforms: a basic one and another equipped with a blend of informational and reward-based features on popular gamified sites like Robinhood and EToro. Novice investors showed a clear preference for the rewards-based platform, leading to a 12.5% increase in trading activity compared to the more basic platform.

Moreover, the gamified environment reinforced counterproductive investment strategies, such as holding onto losing stocks and selling winners. Investors prone to such a strategy were found to be 32% more likely to sell after a price increase alert and 38% more likely to hold after a price drop compared to their actions without such notifications. In contrast, more knowledgeable investors could do the opposite, being 36% more inclined to purchase after a price increase.

Mariana Khapko, an assistant professor of finance at the University of Toronto Scarborough, who is also cross-appointed to the University’s Rotman School of Management, advocates for “neutral” investment platforms. These platforms are ideal for self-directed investors as they do not bias investment decisions. She notes that while the common advice for amateurs is to invest in indexed funds and largely ignore market fluctuations, gamified platforms tend to encourage more frequent trading, benefiting the platforms financially.

This trend is particularly concerning as it targets young, inexperienced traders who are especially vulnerable to engaging in what is perceived as ‘fun trading,’ according to Prof. Khapko. This concern is shared by regulators, who have heightened their scrutiny of gamified trading platforms in recent years, worried about their potential to mislead users into making poor financial decisions. In response, the U.S. Securities and Exchange Commission issued new regulations in July 2023 to eliminate potential biases in the algorithms that power these platforms.

While regulation is necessary to maintain ethical standards, Prof. Khapko stresses the importance of not stifling technological innovation in the trading sector. She believes enhancing financial literacy could diminish investors’ susceptibility to such behavioural nudges, offering a more effective solution to the challenges posed by gamified trading platforms.

More information: Philipp Chapkovski et al, Trading Gamification and Investor Behavior, Management Science. DOI: 10.1287/mnsc.2022.02650

Journal information: Management Science Provided by University of Toronto, Rotman School of Management

The Influence of Imbalanced Work-Life Practices on the Increased Risk of Cardiovascular Diseases

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As modern work demands continue to escalate, with extended working hours, the expectation of constant availability, and the blurring of professional and personal life, the global workforce is increasingly grappling with the detrimental impacts of workplace stress seeping into their personal lives. This growing concern, often termed a work-to-family spillover, has profound and far-reaching consequences for individuals’ mental health, family dynamics, work productivity, and job satisfaction. In Singapore, where reported stress levels exceed the global average, a significant portion of the workforce experiences mental and physical exhaustion at the end of each workday, indicating a severe imbalance that borders on an ‘epidemic’ of work-life disproportion. This pressing issue underscores the urgent need for effective interventions to mitigate these risks and restore a healthy work-life balance.

Assistant Professor Andree Hartanto has highlighted the limitations of relying solely on self-reported, subjective health measures such as headaches and general fatigue to fully comprehend the breadth of health impacts. He has stressed the importance of physiological changes, particularly those affecting the cardiovascular system, which may go unnoticed due to their often asymptomatic nature until it’s too late. This oversight is particularly concerning given that cardiovascular diseases are the leading cause of death globally, responsible for approximately 17.9 million deaths annually, as per the World Health Organization (WHO). These alarming statistics have spurred Professor Hartanto and his team to delve deeper into the implications of negative work-to-family spillovers on cardiovascular health.

Their research, eloquently titled “Negative Work-to-Family Spillover Stress and Elevated Cardiovascular Risk Biomarkers in Midlife and Older Adults,” and published in the Journal of Psychosomatic Research, was a collaborative effort that included former undergraduate students from Singapore Management University (SMU). The study utilised data from the National Survey of Midlife Development in the United States (MIDUS) II Biomarker Project and MIDUS Refresher Biomarker Project, covering 1,179 individuals who were either working or self-employed. The study’s demographic was predominantly Caucasian (89%), with an average participant age of 52.64 years and nearly balanced gender representation, providing a comprehensive and representative sample for detailed analysis.

These participants, who worked an average of 41 hours per week, were subjected to extensive evaluations that included a validated scale for measuring negative work-to-family spillover. They also underwent physical examinations and provided fasting blood samples, which were used to assess critical cardiovascular biomarkers such as high-density lipoprotein (HDL), low-density lipoprotein (LDL), triglycerides, interleukin-6, and C-reactive protein. These biomarkers are indispensable for evaluating cholesterol levels, arterial health, and heart inflammation, which are crucial factors in assessing the risk of cardiovascular diseases.

The study’s findings were revealing and somewhat alarming. They demonstrated significant correlations between high levels of negative work-to-family spillover and detrimental cardiovascular biomarker profiles. Specifically, elevated levels of triglycerides, which are linked to arterial hardening, and reduced levels of HDL, associated with high cholesterol, were observed among participants who reported higher levels of work-life imbalance. These associations remained significant even after adjusting for demographic variables, medication usage, health status, and other pertinent health behaviours.

Furthermore, the research also identified a linkage between negative work-to-family spillover and inflammation biomarkers such as interleukin-6 and C-reactive protein. These findings illuminate the broader systemic impact of chronic stress on the body, underscoring the profound physiological implications of work-life imbalance on cardiovascular health.

Professor Hartanto’s study is a crucial call to action for stakeholders, including healthcare professionals, organisational leaders, policymakers, and academic researchers. It advocates for a concerted effort to promote healthier work-life balances, aiming not only to enhance mental well-being and family relationships but also to mitigate substantial risks to physical health, thereby reducing the prevalence and burden of cardiovascular diseases among working populations. This comprehensive approach is essential for fostering a healthier, more productive workforce that can thrive professionally and personally.

More information: Andree Hartanto et al, Negative work-to-family spillover stress and heightened cardiovascular risk biomarkers in midlife and older adults, Journal of Psychosomatic Research. DOI: 10.1016/j.jpsychores.2024.111594

Journal information: Journal of Psychosomatic Research Provided by Singapore Management University

Beyond Cubicles: The Impact of Active Workplace Design on Employee Behaviour

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Physical inactivity and prolonged periods of sitting are prevalent among office workers, posing significant health risks and economic burdens. To mitigate these issues, it is essential to look beyond health promotion interventions and consider the workplace design as a factor that encourages active employee engagement. Frameworks like the socio-ecological model emphasize the complex interactions that influence active and passive behaviours, highlighting the physical environment’s crucial role in promoting physical activity at work.

Recent research led by Associate Professor Mohammad Javad Koohsari from the Japan Advanced Institute of Science and Technology (JAIST), which included collaborators such as Associate Professor Andrew T. Kaczynski from the University of South Carolina, has identified key gaps in our understanding of how workplace design impacts worker activity levels. Published in the British Journal of Sports Medicine, their study conducted a comprehensive review of existing literature, underscoring the need for further exploration. Dr Koohsari emphasized the significance of workplace norms and physical layout in influencing employee behaviour and highlighted the importance of precise behaviour measurement.

The research team noted that existing studies predominantly focus on Western settings, suggesting a pressing need for cross-cultural studies to ensure the relevance of workplace interventions across different geographical and cultural contexts. Adapting workplace norms to accommodate the shifting dynamics of remote and hybrid work environments also presents a new frontier for research.

To accurately measure active and sedentary behaviours, traditional tools such as GPS and accelerometers, which often provide less accurate data indoors, are insufficient. The team proposes using an Indoor Positioning System (IPS) that leverages cost-effective Wi-Fi and Bluetooth technology for precise indoor tracking. This system can be integrated with activity-tracking wearables to gather comprehensive data on employee movements and activity levels. Combined with Geospatial AI (GeoAI), it can enhance the analysis of movement patterns within office spaces.

Past research has often focused on isolated workplace design elements without considering the overall spatial arrangement of the environment. The study suggests that the entire building layout, including the arrangement of walls, doors, windows, and access routes, plays a pivotal role in defining the functionality of spaces and their impact on worker behaviour. Dr. Koohsari advocates using space syntax theory, which employs graph-based estimators to quantify spatial layouts and explore how various configurations affect employee activity.

As digitalization and automation expand, sedentary behaviours among office workers are expected to increase. In response, Dr Koohsari calls for future studies to examine the interactive effects of workplace norms and culture on behaviour, conduct cross-cultural studies to uncover similarities and differences across settings and employ innovative measurement methods. Moreover, exploring the influence of spatial layout using space syntax can offer valuable insights into designing work environments that naturally promote active and engaging behaviours.

More information: Mohammad Javad Koohsari et al, Active workplace design: current gaps and future pathways, British Journal of Sports Medicine. DOI: 10.1136/bjsports-2024-108146

Journal information: British Journal of Sports Medicine Provided by Japan Advanced Institute of Science and Technology