The column argues that markets are driven by conflicting certainties: investors believe they’re right while assuming others are equally informed, yet the no-arbitrage principle and markets’ role as prediction engines still govern pricing, exposing a pervasive cognitive dissonance in investing.
The article discusses the film "The Zone of Interest" and its exploration of cognitive harmony, contrasting it with the concept of cognitive dissonance. The film, directed by Jonathan Glazer, is based on the real biography of Rudolf Höss, the longest-serving commandant of Auschwitz. The author critiques the film's explicit portrayal of dissonance, finding it lacking in subtlety. The article delves into the psychological aspects of cognitive dissonance and cognitive harmony, drawing parallels to current events and historical contexts. It emphasizes the importance of confronting the human impulse to avoid contradiction and the need to acknowledge and understand it.
Researchers have found that labeling food as "vegan" may deter people from choosing meat and dairy-free options. In an experiment involving over 7,300 participants, food labeled as "healthy and sustainable" was chosen more often (44%) compared to food labeled as "vegan" (20%). This bias against veganism reflects the cultural resistance seen broadly within the wider community. To overcome this, some researchers suggest focusing on flexitarianism, which involves reducing but not eliminating animal products, as a more attainable and sustainable goal. The study highlights the potential of using labels as a low-cost intervention to promote healthy and sustainable food choices.
A new study by researchers from The Ohio State University and the University of Michigan found that psychological distress caused by cognitive dissonance, the psychological whiplash that arises when attempting to reconcile multiple, seemingly incompatible beliefs, can lead to physical pain in the neck and back. The study had volunteers lift lightweight boxes whilst being told they were doing an unsatisfactory job, resulting in extra pressure on participants' necks and low backs. The study could have implications for workplace safety that should recognize how psychosocial stressors may harm physical health.