The Role of Cognitive Dissonance in the Pandemic
In last week’s 3L&3S we featured a piece about “Why facts don’t change our minds?”. One of our readers responded to that piece with this one which kind of steps back and attributes it to the aspect of cognitive dissonance. This piece is by Elliott Aronson and Carol Travis, who are social psychologists and authors of a new book, “Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts”. Aronson happens to be a protégé of Leon Festinger, who famously coined the term Cognitive Dissonance. In this piece, they bring about how cognitive dissonance is manifesting in our reaction to the pandemic and in this context, the consequences can be dire. For investors, this tends to be a big risk as we tend to defend our investment choices and shut our minds to anything that questions the decision. At Marcellus, we are cognizant of this and try and deal with it by having a ‘Devil’s Advocate’ analyst for each position (including the ones we don’t buy) pushing the other side of the investment case through research completely independent of and as rigorous as the primary analyst.
“Cognitive dissonance, coined by Leon Festinger in the 1950s, describes the discomfort people feel when two cognitions, or a cognition and a behavior, contradict each other. I smoke is dissonant with the knowledge that Smoking can kill me. To reduce that dissonance, the smoker must either quit—or justify smoking (“It keeps me thin, and being overweight is a health risk too, you know”). At its core, Festinger’s theory is about how people strive to make sense out of contradictory ideas and lead lives that are, at least in their own minds, consistent and meaningful.
…The minute we make any decision—I’ll buy this car; I will vote for this candidate; I think COVID-19 is serious; no, I’m sure it is a hoax—we will begin to justify the wisdom of our choice and find reasons to dismiss the alternative. Before long, any ambivalence we might have felt at the time of the original decision will have morphed into certainty. As people justify each step taken after the original decision, they will find it harder to admit they were wrong at the outset. Especially when the end result proves self-defeating, wrongheaded, or harmful.
…when people feel a strong connection to a political party, leader, ideology, or belief, they are more likely to let that allegiance do their thinking for them and distort or ignore the evidence that challenges those loyalties. The social psychologist Lee Ross, in laboratory experiments designed to find ways to reduce the bitter conflict between Israelis and Palestinians, took peace proposals created by Israeli negotiators, labeled them as Palestinian proposals, and asked Israeli citizens to judge them. “The Israelis liked the Palestinian proposal attributed to Israel more than they liked the Israeli proposal attributed to the Palestinians,” he told us. “If your own proposal isn’t going to be attractive to you when it comes from the other side, what chance is there that the other side’s proposal is going to be attractive when it actually comes from the other side?”
…Today, as we confront the many unknowns of the coronavirus pandemic, all of us are facing desperately difficult decisions. When is it safe to get back to work? When can I reopen my business? When can I see friends and co-workers, start a new love affair, travel? What level of risk am I prepared to tolerate? The way we answer these questions has momentous implications for our health as individuals and for the health of our communities. Even more important, and far less obvious, is that because of the unconscious motivation to reduce dissonance, the way we answer these questions has repercussions for how we behave after making our initial decision. Will we be flexible, or will we keep reducing dissonance by insisting that our earliest decisions were right?
Although it’s difficult, changing our minds is not impossible. The challenge is to find a way to live with uncertainty, make the most informed decisions we can, and modify them when the scientific evidence dictates—as our leading researchers are already doing. Admitting we were wrong requires some self-reflection—which involves living with the dissonance for a while rather than jumping immediately to a self-justification.
…This nasty, mysterious virus will require us all to change our minds as scientists learn more, and we may have to give up some practices and beliefs about it that we now feel sure of. The alternative will be to double down, ignore the error, and wait, as Trump is waiting, for the “miracle” of the virus disappearing.”