Monday, May 19, 2008

Can We Really Trust Ourselves? Monkey See Monkey Do

I'm not a proponent of evolution but maybe we have more in common with monkeys than we would care to admit. When imitation occurs as a result of conscious thought it can represent the sincerest form of flattery but more often than not people are actually "victims" of unconscious imitation.

Innately, humans have a strong tendency towards imitation. Just look at children - they were never told to imitate but they just do - it is the way they learn and it's natural. As we progress in brain development and age, we have had enough experiences to generate "unique" behaviors and outwardly cast off "child-like" imitation behaviors (this is especially prevalent in the Western hemisphere where individuality reigns supreme).

Like all natural urges, what may be suppressed in the conscious mind (ego) may not necessarily be restrained in the unconscious mind (id). This is the reason why we have so many fads, fashion and partners that are beyond the comprehension of reasonable thinking. One example of imitation gone wild is the popularity of faded designer jeans. These days, jeans that look like they would have normally been thrown out due to extensive wear (stained and faded with holes) are being sold as new and bought at ridiculous prices. Despite our common sense (jeans do not cost over $100 to make), we can not help but to imitate everyone else and buy these jeans or at least have the desire to buy them.

Another interesting example of unconscious imitation is the "groupie effect" (For more on human attraction, check out Like Dissolves Like). The basic premise for this effect is that men/women are attracted to women/men that other men/women find attractive. This is why musicians and celebrities "seem" attractive and have groupies despite their actual physical appearance. So for anyone that is single, a good way to increase your chances of success in meeting someone is to have an "opposite-sex" wing person. This effect can be explained by what scientists call "mate choice copying". Finding a suitable partner is time consuming so taking cues from other is an effective mating shortcut. This also explains why women view men who are married or have a girlfriend more attractive than men who are single.

The last example that exemplifies unconscious imitation, desiring what others consider desirable, can be found in free capital markets. In the year 1634 in Holland, the price of tulips (yes, the flower) traded higher than the price of gold. This occurred because people wanted tulips for the sole reason that everyone else wanted tulips. They disregarded their common sense, much like we do with "holey" jeans, and prices for tulips sky rocketed. As with all fads, the demand for tulips faded and a panic ensued causing the price to plummet and financial ruin for many. Now tulip mania or tulipomania is used to refer to any large economic bubble. In hindsight, one can almost laugh at the absurdness of the Dutch, but with many brought to financial ruin when the tech bubble burst and many suffering through the bursting of the current housing bubble, are we that much different?

Unconscious imitation can certainly be dangerous but it can also be helpful. One way to take advantage of your natural desire to imitate is to surround yourself with people you want to be like. If you want be a better basketball player, play with people better than you. If you want be more religious, surround yourself with religious people by consistently attending religious services and events. Unconscious imitation requires no "work" on your part but this can be a double edged sword. Since you can't help but be affected by those around you, it is important to evaluate the people and media (visual- television, audio- radio/mp3 and print- books) that you surround yourself with.

"When the character of a man is not clear to you, look at his friends." - Japanese Proverb

Recommended Readings: Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay

4 comments:

Anonymous said...

Very interesting, especially the origin of the term "tulipmania". I think this characteristic of imitating is innate in all of us, and as human beings we end up repeating the same mistakes time after time, but in different shapes and forms. The tech bubble is one instance, but now we're looking at oil prices and also commodities- two similar bubbles where investors are just chasing the same thing everyone else is. Same with the subprime crisis... it is not much different than the Savings and Loan Crisis. When we will learn? Unfortunately, it may never happen.

Thanks for your thoughtful insights.

AK

Seemingly Useless said...

I feel that people who are part of a bubble never seem to realize it because they always assume this time it is different. They may point to a million and one facts about how this may be different and then the bubble bursts and they talk about how obvious it was. Emotions can be a scary thing.

Anonymous said...

as you said, humans innately have the ability to imitate. in fact, i believe that is the one ability that has facilitated our separation from the rest of the animal kingdom. our ability to imitate enables us to build on the knowledge of all of humanity instead of having to re-learn every skill that has come along the way. i'd say it's much easier to watch and copy your neighbor pick up a rock for hunting rather than wait for that spark of genius to happen on its own.

however, as your post certainly points out, imitation comes at the cost of picking up potentially deleterious habits as well. certainly it's extremely difficult as it probably does lie in our subconscious and thus defies rational thought, but it is all the more reason that people MUST exercise discretion. i think the best way to start to do so is to come to terms with the fact that we are so quick to imitate others, and to beware of "fads" as they come along before we get swept away by them.

a final note regarding tulipomania. i disagree that it was entirely imitation that drove it, at least from my understanding of what i've read. i think there were two different forces at work. initially, yes, that tulips became a fad and that people collected them was probably a result of our imitative behavior. as the fad was in full force and prices rose, another force took over, greed. people were no longer buying and collecting tulips for the sake of buying tulips because they were popular. instead they were buying them under the assumption that the value of them would continue to rise and to no end. at this point, the bubble spiraled out of control.

Seemingly Useless said...

I completely agree that greed is what took over the latter part of the mania as people who weren't interested in the tulip at all began speculating in it. But with all price movements, there has the be an inherent belief that the tulip is worth the highest price transacted since it takes two sides to complete a sale. It was because of everyone else's optimism on the price of tulips that created the house of cards that caused many fortunes to be lost.