Sawang-sinawang: Focusing Illusion in Disability Context

In predicting the future (future forecasting), individuals tend to overestimate the impact they might experience if there is a significant change in one aspect of their life. This study seeks to determine the best strategy to reduce the focusing illusion that occurs when participants are asked to imagine a worse situation (disability setting). This study is a quantitative randomized controlled trial (RCT), comparing three defocusing illusion scenarios (concrete events, change for better and worse and time-weighted) and the effect on the level of quality of life (QoL) of the participants. The results of this study showed a significant effect between the three treatments on the quality of life. The ‘change for the better and worse’ scenario is shown to be more effective at reducing the effect of the focusing illusion. Keywords: disability, future forecasting, focusing illusion, defocusing illusion

The “Focusing Illusion” of Rawlsian Ideal Theory

In A Theory of Justice John Rawls constructed and defended an abstract account of distributive justice founded upon hypothetical theoretical devices like the original position and veil of ignorance, the principle of maximin, and conceptual analyses of equality of opportunities. Such a methodology places a premium on abstract hypotheticals (vs. the actual history of injustice), and idealizations that involve making claims that are actually false, in order to simplify an argument. This chapter critically examines the idealizations employed by Rawls’s original theory of justice. It argues that Rawlsian ideal theory is inherently flawed because Rawls’s idealizations make our normative theorizing prone to the valuation distortions that arise in what psychologists call a “focusing illusion.”

Dampening focusing illusion to protect borrowers

Focusing illusion describes how people, when making choices, give disproportionate attention and weight to attributes in which their options differ more. It can lead to harmful loan consumption because when considering a loan, one may attend excessively to the difference between getting the loaned amount and not, while ignoring the differences between making and not making repayments. In two experiments, we demonstrate that the effect of focusing illusion in loan decisions can be dampened by carefully designing the set of plans offered. The crux is to offer a steeply-decreasing installments plan alongside the usual fixed installments plan so that consumers are less likely to borrow, because the decreasing plan attracts attention to making repayments. We conclude that policy may combat against harmful loan consumption by prescribing joint presentation of loan offers such that at least one option includes high initial repayments, dampening the salience of getting the good.

Environmental issues: managing product switching intentions among Indonesian consumers

Purpose This study aims to explore the factors that make Indonesian consumers differ in their intentions to switch to products that are more eco-friendly than their current products. Design/methodology/approach Consumers’ experiences with their current product and evaluation of its more eco-friendly alternative were simulated; the effects on intention to switch to the better product were then investigated. Findings This study found that the differences in intentions to switch are attributable to loss aversion and focusing illusion. When consumers follow the principle of loss aversion (exaggeration of greater loss than gain), they are more likely to switch to leave unattractive product (i.e. a product that they perceive as contributing to environmental degradation) than when they do not. Also, when consumers experience focusing illusion concerning the environment (determining happiness based on environmental conditions), they are more likely to switch to make their lives happier than when they do not. Practical implications In managing consumer intention to switch, companies should effectively communicate how their products save the environment. This communication could make their customers less likely to give up their current products to live happier lives. Similarly, companies could encourage target customers to switch to their products by arguing that giving up their current products would help them live happier lives. Originality/value This study provides empirical evidence that perceived budget constraints may not inhibit consumers from switching to more eco-friendly products to live happier lives.