Choice Architecture by Richard Thaler, Cass Sunstein, John Balz Richard H. Thaler University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER) Cass R. Sunstein Harvard Law School John P. University of Chicago - Political Science DepartmentApril 2, 2010 Abstract: Decision makers do not make choices in a vacuum. Number of Pages in PDF File: 17 Keywords: Behavioral Economics, Public Policy, Nudge, Psychology working papers series
Think before you nudge: the benefits and pitfalls of behavioural public policy The government’s commitment to behavioural change is starting to be taken up by both central government departments and local authorities. Paul Rainford and Jane Tinkler look at the benefits and problems associated with so called ‘nudge’ theories and how this approach is being used in the UK. In 2008 Richard Thaler and Cass Sunstein published a book entitled Nudge: Improving Decisions About Health, Wealth, and Happiness. It draws on the emerging disciplines of behavioural economics and social psychology to explain why people often act in ways that are against their interests – that is the maximisation of welfare – as defined by classical economics The authors argue that this discrepancy between interests and actions reflects the fact that we are driven by two different, but interlocking, systems. It is via this second system that it is possible to ‘nudge’ people into making certain ‘beneficial’ choices. Figure 1: A summary of the main influences outlined in the MINDSPACE framework
Book Summary: Yes! 50 Scientifically Proven Ways to be Persuasive Yes! 50 Scientifically Proven Ways To Be Persuasive This book is an attempt to focus on persuasion as a science rather than an art. It relies on a significant body of research to compile this list. 1) Social Proof – People look outside themselves to justify their actions. You can persuade individuals by highlighting that a majority of people do ‘x’. 2) More individualized messages get greater results. 3) Social proof can backfire if you are showing that the wrong course of action is popular. 4) People who deviate from the average will move toward the average. 5) For those acting in a socially desirable way, there needs to be praise or positive reinforcement of the good behavior. 6) Too many choices overwhelm people unless people are already clear about their options. 7) When giving a free gift with an item, the value of the free item declines in the mind of the purchaser. 8 )When multiple products are offered, the middle item is often selected as the compromise approach. Be Sociable, Share!
The Responsible Tourism Partnership Better the devil you know Dan Ariely tells Matthew Taylor why it's only by understanding our weaknesses that we can learn to anticipate and avoid mistakes Matthew Taylor: The UK government has just set up a behavioural insight team, and behavioural economics has been subject to a surge of policy interest in recent years. What do you think has driven this trend? Dan Ariely: Without the financial crisis, I don’t think behavioural economics would have gained the popularity it has. Almost everyone believed that the market was the most rational place on the planet, yet it failed in a magnificent way. In addition, over the years, behavioural economics has moved from the lab to the field. MT: Can you give me some examples of these real-world implications? DA: We've recently done a study looking at how people decide which loans to pay back. Another study we’re doing is about why people don’t look for second opinions in medicine. Conflicts of interest are a good example of the importance of behavioural economics.
Health nudge: the stairs to fitness Singapore has to be the nudge capital of the world. Everywhere you look behavior is being guided and shaped towards better outcomes. In this post I report on a nudge that actually works for choosing the stairs rather than the escalator – forget about piano-stairs and FunTheory! Nudge stairs vs. escalators Take a good look at these stairs. They are located at the popular Bugis MRT station in Singapore. As a nudge enthusiast Singapore is definitely a must visit – Singapore is simply bristling with well-designed nudges. Priming – Our acts are often influenced by sub-conscious cues Most people, well, probably everyone, are aware that exercise makes your body healthier. The stairs at Bugis MRT station prime choices in a brilliant way. For one, the usual sounds and movement of escalators are absent. Second, as a foreigner, or just someone unfamiliar with the station or someone absent minded, you may come to believe for a second that the stairs are broken. Katrine
Lucid | Building Dashboard Competitions Go head-to-head in energy and water use reduction competitions between buildings, floors, and departments. Budgets Track success toward meeting a monthly budget with colorful calendar views and pertinent daily summaries. Discussions Make public announcements, strategize about reduction efforts, and share best practices with live discussion feeds. Commitments Call on individuals to publicly commit to energy and water conservation actions in their buildings and on Facebook. Community comparisons Grade your building against the best and worst performers, and see where your building stands among its neighbors. Event tagging Create a continuous log of building improvements, energy efficiency upgrades, and community activities.
Responsible Tourism Awards organised by responsibletravel.com We have now announced our official list of finalists for 2015! Thank you to all those on our Longlist for taking part. The winners will be announced on Wednesday 4th November 2015 at World Travel Market in London as part of the opening of World Responsible Tourism Day WTM Global Stage - Weds 4th November 2015 10:30am - WTM WRTD Opening & debate11:45am - World Responsible Tourism Awards 2015 About our Awards Responsible Travel's vision for the World Responsible Tourism Awards at WTM rests on a simple principle - that all types of tourism, from niche to mainstream, can and should be organised in a way that preserves, respects and benefits destinations and local people. The Awards are organised by founders Responsible Travel, in association with the International Centre for Responsible Tourism, and take place at the World Travel Market in London as part of World Responsible Tourism Day - the world's biggest event for responsible tourism. Read more about our Awards. Read about Last Year's Winners
6 Ways Google Hacks Its Cafeterias So Googlers Eat Healthier Much has changed since Google earned a reputation for fattening its staffers with food on demand. These days, the company is focused on advancing its healthy eating initiatives. Explains Jennifer Kurkoski, who has a PhD in organizational behavior and runs a division of Google’s HR department called People Analytics, “When employees are healthy, they’re happy. When they’re happy, they’re innovative.” In pursuit of that healthiness, happiness, and innovation, Google has turned to “nudges”: simple, subtle cues that prompt people to make better decisions. No longer are M&Ms in clear hanging dispensers. Waiting for you as you enter the cafeteria is the salad bar. While grabbing a plate to load up on grub, you see a sign informing you that people with bigger dishes are inclined to eat more. So you’ve had a bad day, and even a glaring red tag isn’t enough to discourage you from indulging in a treat. You’re back at your desk and thirst is setting in. Illustrations by Peter Oumanski.
The Google Diet: Search Giant Overhauled Its Eating Options to 'Nudge' Healthy Choices <br/><a href=" US News</a> | <a href=" Business News</a> Copy At Google's New York City offices, it's rumored you are never more than 150 feet from some kind of food. The building sports a cafeteria with too many options to choose from, with scattered micro kitchens full of free food for employees, 24/7. But with all this food goodness came unwanted pounds. Like most everything in the search giant's office culture, the cafeteria was hyper-analyzed and re-engineered to be loaded with "nudges" intended to lead people towards healthier food choices. Examples of Google's food tags. "There are all these different color-coded signs here to let you know what's healthy," said Googler Ashley Moak, pointing out green tags that indicate low-calorie food, yellow tags for moderate-sized portions and red tags for pastas and desserts. But it wasn't always this way. "We're busy," Kurkoski said.
NationalField | Measure Change James Surowiecki: Are the Jets Falling Victim to the Sunk-Cost Effect? After a farcical 2012 season, in which the New York Jets invented ever new ways to lose games (thus the “butt fumble”), the team’s general manager, offensive coördinator, and quarterback coach are all gone. Yet Mark Sanchez, the starting quarterback, remains. He has played poorly for two seasons in a row, and has now thrown more interceptions in his career than touchdowns. But the Jets have invested an enormous amount of energy and money in Sanchez, and, assuming that no one will trade for him, they are contracted to pay him $8.25 million next year, whether he plays or not. So figuring out what to do with Sanchez will be trickier than you might think. The Jets have stumbled into a classic economic dilemma, known as the sunk-cost effect. The sunk-cost dilemma isn’t just about waste. The most intriguing aspect of sunk costs, as Arkes and others have documented, is that greater investment in a project increases people’s belief that it will succeed. So how do you counter this problem?
Influencer: The New Science of Leading Change