Behavioral Economics: A Brief History and Overview of Nudges
•Download as PPTX, PDF•
4 likes•618 views
Nudges are subtle influences on behavior that steer people in a preferred direction without limiting options or significantly changing incentives. They work by designing choices to appeal to people's instincts and tendencies. Examples include putting healthy foods at eye level in a cafeteria or adding a fly graphic next to urinals in men's bathrooms to reduce spills. While nudges can encourage positive behaviors, they must be designed carefully and avoid becoming coercive or manipulative influences on choice.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Behavioral Economics: A Brief History and Overview of Nudges
Similar to Behavioral Economics: A Brief History and Overview of Nudges (20)
More from Bresslergroup
More from Bresslergroup (10)
Recently uploaded
Recently uploaded (20)
Behavioral Economics: A Brief History and Overview of Nudges
- 1. Ed Mitchell Senior Industrial Designer at Bresslergroup November 8, 2018 (World Usability Day)
- 2. BEHAVIORAL ECONOMINCS Daniel Kahneman The first formulation of the term and associated principles was developed in cybernetics by James Wilk Richard Thaler and Cass Sunstein's book Nudge: Improving Decisions About Health, Wealth, and Happiness brought nudge theory to prominence. Adopted to politics Obama, 2010 UK government sets up behavioral insight team commonly known as “Nudge Unit” CEOs like Pepsi's Indra Nooyi Nudge consumers to make sustainable choices 2008 1995 2009 & 2010 2012 PRESENT BVA Nudge Lab (a marketing consultancy)
- 3. A concept in behavioral science, political theory, and behavioral economics which proposes positive reinforcement and indirect suggestions as ways to influence the behavior and decision making of groups or individuals. Nudge is a simple way to modify people behavior / relationship with an object and / or environment by designing in incentives. It play’s off of peoples instinct's on a conscious and / or subconscious level. A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.. NUDGE DEFINITIONS
- 4. Simply put, it’s a little push created by the designer that makes the user think or do something they might not instinctively do
- 5. NUDGES ARE NOT MANDATES Putting fruit at eye level counts as a nudge. Banning junk food does not.
- 7. PROBLEM At Amsterdam's Schiphol Airport the men’s bathroom needed cleaning all the time because of “splashback”.
- 10. The fly acts as a target
- 11. WHY THE FLY? The fly conjures up images of something unsanitary, without being scary FLY
- 12. Initially reduced “spillage” by up to 80% Sphinx, the manufacturer, says it reduces cleanup by 20% on average
- 13. HOW NUDGES WORK
- 14. CONSIDERATIONS WHEN DESIGNING A NUDGE 1 Align incentives with desired behaviors, being careful to avoid incentive conflicts 2 Provide clear, visible, and immediate feedback to reinforce desired actions or mildly punish undesired behaviors 3 Simplify and structure choices when decision making parameters are complex 4 Make goals and performance status clearly visible
- 15. OVERT
- 17. OVERT SUBTLE Can also be graphical, but is seen a lot in product design Have a tendency to be more graphical in nature HIDDEN / BLENDS INPERCEIVED HONEST
- 18. ARE NUDGES GOOD?
- 19. You can argue that an intuitive design is created by a series of nudges that inform the user how to use an object INTUITIVE
- 20. SAFETY
- 21. GUIDANCE
- 22. REWARD
- 23. RESPONSIBLE
- 24. ENTERTAINING
- 25. FUN
- 26. ARE NUDGES EVIL?
- 28. The planet fitness business model Low cost gym memberships THE CHALLENGE If everyone went to the gym who purchased a membership there wouldn’t be enough room for anyone to work out
- 31. Most gyms try to nudge towards working out more but they don’t ABSENCE OF A NUDGE
- 32. NUDGE YOU TO COME BACK
- 33. NOODGES (Yiddish for nag) OR PHISHING
- 34. LOSE VALUE DUE TO EXCESSIVE USE NOODGES (Yiddish for nag) OR PHISHING
- 36. SLUDGE Procedures that accidentally or deliberately encourages inertia. Voter ID laws are a good example of sludge, calculated to softly disenfranchise
- 37. DARK NUDGE
- 38. DARK NUDGE Uber uses an algorithm similar to Netflix’s auto play feature, which automatically shows drivers their next possible fare before they’re even done dropping off their current rider incentivizing them to drive more...
- 40. “Whenever I'm asked to autograph a copy of “Nudge” the book I sign it “Nudge for good”” Unfortunately, that is meant as a plea, not an expectation - Richard Thaler
- 41. PRINCIPLES TO GUIDE THE USE OF NUDGES 1 All nudging should be transparent and never misleading 2 It should be as easy as possible to opt out of a nudge, preferably with as little as one mouse click 3 There should be a good reason to believe that the behavior being encouraged will improve the welfare of those being nudged
- 42. ANY QUESTIONS? Thanks for listening.