We've blogged before about the many advantages of being beautiful.  New research indicates that looking "trustworthy" carries some benefits as well:

In a paper recently published in the PLoS One journal, researchers from Warwick Business School, the University College London and Dartmouth College, USA, carried out a series of experiments to see if people made decisions to trust others based on their faces.

They found people are more likely to invest money in someone whose face is generally perceived as trustworthy, even when they are given negative information about this person's reputation.

"Trustworthiness is one of the most important traits for social and economic interactions and our study examines whether people take potentially costly actions in line with their face-based trustworthiness judgments," said Dr. Chris Olivola, one of the study's authors. "It seems we are still willing to go with our own instincts about whether we think someone looks like we can trust them."

Now the only trick is for people who aren't in fact trustworthy at all to appear as if they are. Or, as it's been said before: Once you can fake sincerity, you've got it made.

(HT: Naked Capitalism)

Like many major European venues, the Plaza Mayor in Madrid has many buskers operating.  One busker had a particularly clever shtick:  Dressed up like an infant in a stroller, he would squeal and squawk, especially whenever someone put money his jar.  Many kids, and even this adult, did exactly that.  In the 5 minutes I watched at least 10 people gave him something. BUT:  Near the end of that time, other buskers, who had been observing him, moved their routines closer to his. His flow of customers diminished, with some going to the other, now nearby buskers.  He still was attracting more money than the others, but his excess profits had been reduced by the new competition. 

One of the most important economic issues we face today is how much to spend on education, both individually and as a society. As tax revenues decline due to demographic changes and deteriorating business conditions, municipalities have to make tough choices about which programs to cut, and education is often an early victim. Because we don’t yet have good measures of all the future benefits produced by better education today, school programs are easy targets for cost-cutting measures, especially in lower-income regions where parents are focused on meeting more basic needs and less likely to put up a fight. But experiments like Geoffrey Canada’s Harlem Children’s Zone hint at the enormous impact that early educational support can have on lifetime achievement.

I have my own example: Mrs. Ficalora, the best third-grade teacher ever.