I have had a couple of moments of clarity recently, suddenly seeing how the words people use mean such very different things. Last year I realised that my approach to learning differs from most of the students in my class. I am an obsessive reader and need a lot of big picture structure with cohesive theory to understand stuff. My students are mostly experiential learners who don’t like to read and need to do problems to understand things. I skip the examples in books, they skip everything else. This means that most of my sincere attempts at teaching them would be destined to fail until I started making a concerted effort at using numbers in my examples.
Year: 2010
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Applicable or unavoidable
The title of this post is related to another realisation. I am an integrator. I try to find application of all the knowledge I have. I don’t believe that truly useless knowledge exists, which is probably why I have such a vast store of trivia tucked away in the recesses of my mind — I’m holding out hope that it will come in useful one day. This means I have often misinterpreted what people mean when they say they “haven’t needed” a particular thing they learned in school or at university. When I say something like that I mean I couldn’t find application for it. When they say it they mean they have been able to avoid application. This seems to be a very common goal in people’s jobs; to avoid application of their knowledge as much as possible. I speak to people and they’ve come up with poorly implemented versions of what should have been Wiener filters because they’ve avoided dredging up some signal processing theory they learned a while back, or they don’t program on principle, and spend hours doing a task that could have taken them seconds to Google and write down.Now, as I read that paragraph I can see how superior it comes off, but I am pretty sure my obsession with application has cost me a lot of time. It has definitely cost me a lot of time arguing with people over needing a particular piece of theory because I didn’t understand what they meant. To my mind, when you have a filtering problem you need a good filtering algorithm, which means you need to dredge up some filtering theory. To their mind they don’t need it if they can come up with their own implementation, and if what they come up with works ok, it’s good enough.The take home message here is that I am trying harder to use numbers in my examples and to search for the proper semantics when people speak. Do they mean they don’t need in my sense as in applicable or need as in unavoidable or need as unavoidable? -
Where “added value” comes from
One of the things that have often bothered me is the idea of added value. I’ll admit to not having read enough market theory, but it’s been pretty easy to understand how refining an ore leads to a product with higher value due to its increased utility. For bulk chemicals and products, the market is very efficient and bulk product prices tend to be marginally above production cost. Where things become weird is with services and branded products. Many of us have thought about the irrationality of paying twice as much for the same shirt simply because it bears a particular logo.
Then you start thinking about counterfeiting, especially about the concept of originality. Let’s say you’re willing to pay R100000 for an original Pierneef. If a person approaches you with a perfect copy of this painting, why would you not pay the same amount for the copy? The answer is that you are attaching some value to originality. I suppose it should be said that market theorists would probably explain this by saying perfect copies deminish the value of the painting by increasing the supply.While driving to fetch some pizza from the best pizza place in Pretoria, it occurred to me that cognitive biases could help to explain much of the strategies associated with good business beyond the bulk manufacturing sense engineers tend to think of. I’m still working on the details, but briefly, people do not generally have access to perfect rationality. The biases listed in that wikipedia page all show how our perceptions and estimation of the odds are actually a bit off. When you can craft a strategy that bends as many of these biases in your favour as possible, you will end up with a product that will appear to be worth more than its utility to most people, and you will be able to get a lot more money for it. I’ll be thinking about this more and posting, but leave a comment if you think I’m on to something (or even better, if you can point me to alternative explanations).