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Nudging People to Recycle

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By Han Nim Jang, Casper Hsieh, Jun Li
Course code: RSM450 Judgment and Decisions
Professor Nina Mazar

This powerpoint talks about ways to nudge people to recycle using judgment and decision tools learned in class.

Published in: Business
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Nudging People to Recycle

  1. 1. Nudging People to Recycle Using Judgment & Decision Tools Casper Hsieh Han Nim Jang Jun Li
  2. 2. Agenda1. Background2. Programs3. Experiments4. Success Metric5. Conclusion
  3. 3. Problem SuccessBackground Programs Experiment Conclusion Metric
  4. 4. Why the Problem Exists • Confusion • No loss • No Incentive SuccessBackground Programs Experiment Conclusion Metric
  5. 5. Programs 1. Reduction in Choices 2. Posters 3. Penalty System SuccessBackground Programs Experiment Conclusion Metric
  6. 6. Reduction in Choices 1. Analysis Paralysis 2. Rational Ignorance SuccessBackground Programs Experiment Conclusion Metric
  7. 7. Reduction in Choices SuccessBackground Programs Experiment Conclusion Metric
  8. 8. Posters Recycling Area Public Area Fine Payment Area SuccessBackground Programs Experiment Conclusion Metric
  9. 9. Recycling Area Cognitive Dissonance Peer Effect SuccessBackground Programs Experiment Conclusion Metric
  10. 10. In Public Anticipated Regret Prospect Theory (Loss Aversion) SuccessBackground Programs Experiment Conclusion Metric
  11. 11. Payment Location Opportunity Cost Salience SuccessBackground Programs Experiment Conclusion Metric
  12. 12. Penalty System • Public / Private SuccessBackground Programs Experiment Conclusion Metric
  13. 13. Public Private  StreetsDefinition  Shopping malls  Residential Area  Movie Theatres  High Frequency  High Frequency Penalty  Small Amount  Large AmountEnforcers Police officers / Security Public inspectors Success Background Programs Experiment Conclusion Metric
  14. 14. PrivateHouseholds: Government issued plastic bags Easily accessibleException: CondominiumDifficult to monitor and identify the householdsUnrealisticCosts outweigh benefitsFuture importance SuccessBackground Programs Experiment Conclusion Metric
  15. 15. Payment System  Location: Government Agency  No prepayment  Time limit  Lateness charges SuccessBackground Programs Experiment Conclusion Metric
  16. 16. Experiment Garbage 1 Garbage Recycle Garbage 2 Recycle Wrong Compartment Recycle 3 Right Compartment Measurement: 1) % of garbage in recycling 2) % of recycled items in the garbage 3) % of recycled items in the wrong recycling compartments. SuccessBackground Programs Experiment Conclusion Metric
  17. 17. Control Group 69% 70% 60% 50% 40% 31%Percentage 30% 18% 20% 10% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment SuccessBackground Programs Experiment Conclusion Metric
  18. 18. Experiment #1 SuccessBackground Programs Experiment Conclusion Metric
  19. 19. Results Experiment #2: Poster Program 69% 70% 60% 50% 40% 31%Percentage 27% Control Group 30% 18% Poster Program 20% 10% 2% 3% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment Success Background Programs Experiment Conclusion Metric
  20. 20. Experiment #2 Paradox of Choice SuccessBackground Programs Experiment Conclusion Metric
  21. 21. Results Experiment #2: Reduction in Choices 69% 70% 60% 50% 40%Percentage 30% 24% Control Group 18% Reduction in Choice 20% 6% 10% 0% Garbage in Recycling Items Recycling in Garbage Compartment Success Background Programs Experiment Conclusion Metric
  22. 22. Limitations • Sample size is small • Statistically insignificant • Assumption in behavior • Hard to identify is clear causal relationship SuccessBackground Programs Experiment Conclusion Metric
  23. 23. Success Metrics The benchmarks of success are the followings: 30% 30% 25% 20%Percentage 15% 10% 10% 10% 5% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment Success Background Programs Experiment Conclusion Metric
  24. 24. Conclusion People are Irrational • No Incentive • Confusion • No loss Three Programs Reduction in Choices Posters Penalty System Experiment • Posters • Paradox of Choice SuccessBackground Programs Experiment Conclusion Metric
  25. 25. The End Thank you for listening! SuccessBackground Programs Experiment Conclusion Metric
  26. 26. Q&A SuccessBackground Programs Experiment Conclusion Metric
  27. 27. Appendix• http://www.recycling-guide.org.uk/facts.html• http://www.environment-green.com/
  28. 28. Problem “Approximately 60% of our rubbish thrown away today could be recycled. “ “The unreleased energy contained in the average dustbin each year could power a television for 5,000 hours.” “A survey was done and 9 out of 10 people surveyed said they would recycle more if it was easier.” SuccessBackground Programs Experiment Conclusion Metric

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