The Psychology of Discounting

This is a good reminder in The Economist of how marketers take advantage of consumers’ innumeracy:

Consumers often struggle to realise, for example, that a 50% increase in quantity is the same as a 33% discount in price. They overwhelmingly assume the former is better value. In an experiment, the researchers sold 73% more hand lotion when it was offered in a bonus pack than when it carried an equivalent discount (even after all other effects, such as a desire to stockpile, were controlled for).

This numerical blind spot remains even when the deal clearly favours the discounted product. In another experiment, this time on his undergraduates, Mr Rao offered two deals on loose coffee beans: 33% extra free or 33% off the price. The discount is by far the better proposition, but the supposedly clever students viewed them as equivalent.

Studies have shown other ways in which retailers can exploit consumers’ innumeracy. One is to befuddle them with double discounting. People are more likely to see a bargain in a product that has been reduced by 20%, and then by an additional 25%, than one which has been subject to an equivalent, one-off, 40% reduction.

Consider a $100 product that’s been discounted 20%, then 20%, then 20% once again. If someone asked you whether you’d take that deal versus a one-time discount of 60%, choose the latter. The difference is paying $51.2 with the initial (three-time) discounting versus $40 via the one-time 60% discount.

Why Supermarket Tomatoes Taste Like Cardboard

It’s no secret that the mass-produced tomatoes we buy at a typical grocery store tend to taste like cardboard. Now researchers have discovered one reason why: a genetic mutation, common in store-bought tomatoes, that reduces the amount of sugar and other tasty compounds in the fruit.

Mass-produced tomato varieties carrying this genetic change are light green all over before they ripen. Tomatoes without the mutation — including heirloom and most small-farm tomatoes — have dark-green tops before they ripen. There is also a significant difference in flavor between the two types of tomatoes, but researchers had not previously known the two traits had the same root cause.

The study authors set out to pin down the genetic change that makes tomatoes lose their dark-green top. They focused their attention on two genes — GLK1 and GLK2 — both known to be crucial for harvesting energy from sunlight in plant leaves.

They found that GLK2 is active in fruit as well as leaves — but that in uniformly colored tomatoes, it is inactivated.

Adding back an active GLK2 gene to bland, commercial-style tomatoes through genetic engineering created tomatoes that had the heirloom-style dark-green hue. The darker green comes from greater numbers of structures called chloroplasts that harvest energy from sunlight.

The harvested energy is stored as starches, which are converted to sugars when the tomatoes ripen.

The vast majority — 70% to 80% — of the sugar in tomatoes travels to the fruit from the leaves of the plant. But the remaining amount of sugar is produced in the fruit. This contribution is largely wiped out in uniform, commercial-style tomatoes — and thus they won’t be as sweet.

For the science nerds, here is the paper’s abstract:

Modern tomato (Solanum lycopersicum) varieties are bred for uniform ripening (u) light green fruit phenotypes to facilitate harvests of evenly ripened fruit. U encodes a Golden 2-like (GLK) transcription factor,SlGLK2, which determines chlorophyll accumulation and distribution in developing fruit. In tomato, two GLKs—SlGLK1 and SlGLK2—are expressed in leaves, but only SlGLK2 is expressed in fruit. Expressing GLKsincreased the chlorophyll content of fruit, whereas SlGLK2 suppression recapitulated the u mutant phenotype. GLK overexpression enhanced fruit photosynthesis gene expression and chloroplast development, leading to elevated carbohydrates and carotenoids in ripe fruit. SlGLK2 influences photosynthesis in developing fruit, contributing to mature fruit characteristics and suggesting that selection of u inadvertently compromised ripe fruit quality in exchange for desirable production traits.

It’s no wonder that tomatoes you can grow in your backyard taste that much better.

###

(via Los Angeles Times)

The Best Moments of Euro 2012

Roger Bennett distills the UEFA Euro 2012 tournament to the top 11 moments in his post for ESPN:

1. Shevchenko’s golden goals

In a tournament blighted by the occasional inability to fill stadia, the noise that greeted the brace of goals headed home in the opening group game by veteran Ukrainian icon Andriy Shevchenko still resounds. The 35-year-old striker’s body may be creaking, but muscle memory kicked in to provide his team with a fleeting moment of glory against Sweden. This was Kiev’s version of a Hollywood ending.

2. Danny Welbeck’s flick against Sweden

Had this late game-winning goal – an improvisational 360-degree flick between his own legs – been scored by a player wearing a Brazilian jersey, it would have instantly been hailed as a masterpiece. Because Welbeck was wearing an England shirt, the world media’s first instinct was to wonder whether he had really intended it. England would soon flounder. But the goal’s lasting significance may lie in the glimmer of false hope it offers long-suffering England fans that a youth revolution is poised to transform their team before the 2014 World Cup.

3. “This is Russia”

After rioting in the streets of Warsaw saw 184 people arrested and at least 24 injured, Russian fans completed their celebration of Russia Day by unfurling a colossal banner taunting their Polish opponents by proclaiming “This is Russia.” This show of power outstripped that of their team, which wilted oddly in the group stage. But the violent scenes do not augur well for the World Cup in Russia in 2018.

6. The flood

Donbass Arena in Donetsk, Ukraine, is a spectacular football stadium, but five minutes into Ukraine’s opening-round game with France, its man-made splendor was trumped by the force of nature. A downpour of biblical proportions forced the referee to suspend the action as players and match officials scurried to the locker room to seek refuge from the lightning storm. Unyielding Ukrainian coach Oleg Blokhin stood in the tunnel, monitoring matters with a towel wrapped around his shoulders.

7. Pirlo’s Panenka

With his throwback layered haircut granting his deft performances a timeless quality, the creativity of Andrea Pirlo’s play did not just lift Italy, it elevated the entire tournament. Pirlo’s confidence and experience were best captured by the “Panenka” kick he unveiled to embarrass England’s Joe Hart in the quarterfinal shootout. “I don’t practice it, it just comes to you in the moment,” Pirlo would later say about his poetic kick. “I saw that Hart was very sure of himself; I thought that he had to come down off his high horse.”

9. Mario Balotelli reveals his true self

His second thunderous semifinal strike that threatened to decapitate German goalkeeper Manuel Neuer was astonishing, as was his shirtless, stone-faced celebration that followed it. But the controversial Italian striker’s desire to run to the terraces and hug his tearful mother, Silvia, in the stands after Italy beat Germany showed a side of him we rarely get to see. Beneath the swirling tournament storylines of racism and Italian multiculturalism, Super Mario proved that at heart, he is just a mother’s boy.

10. Jordi Alba’s goal

Spain’s tactical flexibility and footballing intelligence allowed it to write history, triggering instant debate as to whether it is the greatest team of all time. La Roja played without a recognized striker, but who needs one when you have a left back who can run at the speed of light to latch onto Xavi’s clairvoyant pass?

11. Gigi Buffon’s singing of the national anthem

Few sights at Euro 2012 were more memorable than the Italian captain Buffon bellowing the national anthem before matches with eyes closed, chest puffed out, enunciating every syllable with pride. The goalkeeper revealed that the two grandparents he lost in World War II fill his mind before the game, but his musical rendition served as a reminder of what the tournament is all about beneath the hype – 23 men proud to represent the best of their nation.

Certainly #11, in my mind, is near the top of my list. I am really glad Spain was able to win the 2012 tournament, their third major tournament in four years.

Four years ago, I was in Spain and witnessed Spain claim the Euro 2008 title. How quickly time flies. You can browse through my adventures in Spain via this gallery.

Anderson Cooper on Being Human

This is one of the best things I’ve read today. Anderson Cooper writes to his friend, Andrew Sullivan, about his life and public image:

Even though my job puts me in the public eye, I have tried to maintain some level of privacy in my life. Part of that has been for purely personal reasons. I think most people want some privacy for themselves and the people they are close to.

But I’ve also wanted to retain some privacy for professional reasons. Since I started as a reporter in war zones 20 years ago, I’ve often found myself in some very dangerous places. For my safety and the safety of those I work with, I try to blend in as much as possible, and prefer to stick to my job of telling other people’s stories, and not my own. I have found that sometimes the less an interview subject knows about me, the better I can safely and effectively do my job as a journalist.

I’ve always believed that who a reporter votes for, what religion they are, who they love, should not be something they have to discuss publicly. As long as a journalist shows fairness and honesty in his or her work, their private life shouldn’t matter. I’ve stuck to those principles for my entire professional career, even when I’ve been directly asked “the gay question,” which happens occasionally. I did not address my sexual orientation in the memoir I wrote several years ago because it was a book focused on war, disasters, loss and survival. I didn’t set out to write about other aspects of my life.

Recently, however, I’ve begun to consider whether the unintended outcomes of maintaining my privacy outweigh personal and professional principle. It’s become clear to me that by remaining silent on certain aspects of my personal life for so long, I have given some the mistaken impression that I am trying to hide something – something that makes me uncomfortable, ashamed or even afraid. This is distressing because it is simply not true.

I’ve also been reminded recently that while as a society we are moving toward greater inclusion and equality for all people, the tide of history only advances when people make themselves fully visible. There continue to be far too many incidences of bullying of young people, as well as discrimination and violence against people of all ages, based on their sexual orientation, and I believe there is value in making clear where I stand.

The fact is, I’m gay, always have been, always will be, and I couldn’t be any more happy, comfortable with myself, and proud.

I have always been very open and honest about this part of my life with my friends, my family, and my colleagues. In a perfect world, I don’t think it’s anyone else’s business, but I do think there is value in standing up and being counted. I’m not an activist, but I am a human being and I don’t give that up by being a journalist.

Since my early days as a reporter, I have worked hard to accurately and fairly portray gay and lesbian people in the media – and to fairly and accurately portray those who for whatever reason disapprove of them. It is not part of my job to push an agenda, but rather to be relentlessly honest in everything I see, say and do. I’ve never wanted to be any kind of reporter other than a good one, and I do not desire to promote any cause other than the truth.

Being a journalist, traveling to remote places, trying to understand people from all walks of life, telling their stories, has been the greatest joy of my professional career, and I hope to continue doing it for a long time to come. But while I feel very blessed to have had so many opportunities as a journalist, I am also blessed far beyond having a great career.

I love, and I am loved.

The Obituary of Count Robert de La Rochefoucauld

The year 2012 is turning out to be a good one for excellent obituaries. This one of Count Robert de La Rochefoucauld certainly fits the bill. Here’s an excerpt:

En route to his execution in Auxerre, La Rochefoucauld made a break, leaping from the back of the truck carrying him to his doom, and dodging the bullets fired by his two guards. Sprinting through the empty streets, he found himself in front of the Gestapo’s headquarters, where a chauffeur was pacing near a limousine bearing the swastika flag. Spotting the key in the ignition, La Rochefoucauld jumped in and roared off, following the Route Nationale past the prison he had left an hour earlier.

He smashed through a roadblock before dumping the car and circling back towards Auxerre on foot under cover of night. He sheltered with an epicier. From Auxerre, friends in the Resistance helped him on to a train for Paris, where he evaded German soldiers hunting him by curling up underneath the sink in the lavatory. “When we arrived in Paris I felt drunk with freedom,” he recalled.

Still, this is only the second best obituary of the year. The best one? That of John Fairfax.

###

(HT: @legalnomads)

On Busy-ness and Idleness

Tim Kreider, in an op-ed piece in The New York Times, writes on the “Busy Trap.” I liked this paragraph in particular:

Idleness is not just a vacation, an indulgence or a vice; it is as indispensable to the brain as vitamin D is to the body, and deprived of it we suffer a mental affliction as disfiguring as rickets. The space and quiet that idleness provides is a necessary condition for standing back from life and seeing it whole, for making unexpected connections and waiting for the wild summer lightning strikes of inspiration — it is, paradoxically, necessary to getting any work done. “Idle dreaming is often of the essence of what we do,” wrote Thomas Pynchon in his essay on sloth. Archimedes’ “Eureka” in the bath, Newton’s apple, Jekyll & Hyde and the benzene ring: history is full of stories of inspirations that come in idle moments and dreams. It almost makes you wonder whether loafers, goldbricks and no-accounts aren’t responsible for more of the world’s great ideas, inventions and masterpieces than the hardworking.

How busy are you? Is it an excuse in your mind, or a welcome state?