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.
12. Penalty System
• Public / Private
Success
Background Programs Experiment Conclusion
Metric
13. Public Private
Streets
Definition Shopping malls Residential Area
Movie Theatres
High Frequency High Frequency
Penalty
Small Amount Large Amount
Enforcers Police officers / Security Public inspectors
Success
Background Programs Experiment Conclusion
Metric
14. Private
Households:
Government issued plastic bags
Easily accessible
Exception: Condominium
Difficult to monitor and identify the households
Unrealistic
Costs outweigh benefits
Future importance
Success
Background Programs Experiment Conclusion
Metric
15. Payment System
Location: Government Agency
No prepayment
Time limit
Lateness charges
Success
Background Programs Experiment Conclusion
Metric
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.
Success
Background Programs Experiment Conclusion
Metric
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
Success
Background Programs Experiment Conclusion
Metric
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. Limitations
• Sample size is small
• Statistically insignificant
• Assumption in behavior
• Hard to identify is clear causal relationship
Success
Background Programs Experiment Conclusion
Metric
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. Conclusion
People are Irrational
• No Incentive
• Confusion
• No loss
Three Programs
Reduction in Choices
Posters
Penalty System
Experiment
• Posters
• Paradox of Choice
Success
Background Programs Experiment Conclusion
Metric
25. The End
Thank you for listening!
Success
Background Programs Experiment Conclusion
Metric
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.”
Success
Background Programs Experiment Conclusion
Metric