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Applying Behavioural Insights to public
policy
Dr Alex Gyani and Shabnam Gill
2
What will we be covering?
• What are Behavioural
Insights?
• How have they been used in
the UK and NSW?
• How do we know that they
work?
• How can I apply them to my
own work?
3
What are Behavioural Insights?
Behavioural
Insights
Psychology
Economics
Public
Policy
Ethnography
Understanding how people behave in practice, so that
we can design better policies & services
4
A different approach to public policy
Understand
Build
Test
Behavioural
Insights in NSW
6
Four major areas of current work
Health
Social Housing
Domestic Violence
Return to Work
The EAST
Framework
© Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY
Defaults
Simplification
Remove friction
10
BIT ran a trial on the ‘Tax Return Initiative’
with HM Revenue & Customs
Direct to form
Webpage
11
Removing small frictions seems to
make a disproportionate difference
19.2%
23.4%
Webpage Direct to Form
12
Significant increase in use of
Private Health Insurance
This led to $1.6m in additional
revenue and cost offsets at
Westmead Hospital
0%
5%
10%
15%
20%
25%
August September October November December January
% PHI 2012 % PHI 2013
© Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY
Salience
Personalisation
Rewards
15
Letters to persistent non-payers of car tax in the
UK
UNTAXED VEHICLE WARNING
Our latest information shows
you have not taxed your vehicle.
PAY YOUR TAX OR LOSE YOUR [MAKE OF CAR]
You have been caught driving your [make of
car] untaxed.
Image captured on traffic
camera of untaxed car stapled
on the front of the letter
2 31
16
% Relicensing rates of persistent offenders to
DVLA letters
40.4% 42.4%
48.8%
Original New New + image
17
NSW Office of State Revenue
18
NSW Penalty Notice Trial
53.5%
60.4%
Control Trial
© Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY
Norms
Networks
Commitments
21
Nine out of ten people pay their tax on time.
22
UK BIT ran a trial using social norms to increase
tax payment rates within 23 days (1 month)
33.6% 35.1% 35.9% 37.2% 39.0%
Control (8,558) UK Norm (8,300) Local Norm
(8,403)
Debt Norm
(8,779)
Local + Debt
Norm (8,643)
© Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY
Key moments
Prompts
Habits
25
Use critical moments when you have
people’s attention
© Behavioural Insights ltd
1. Control 2. Norm
3. Norm & Picture 4. Norm & Logo
© Behavioural Insights ltd
5. Three Die 6. Nine Lives
7. Reciprocity 8. Action
28
Proportion joining the organ donor
register after a simple online prompt
2.3%
2.8% 2.9% 2.9% 2.9% 3.1% 3.2%
2.2%
Control Take
Action
1000s Heart Lives 3 Die Would you People
29
How did UK cyclists win? ...radical
incrementalism
29
RCTs &
Systematic
Reviews of RCTs
Comparison study
without randomisation
Before and after study
Editorials, Expert opinion
Anecdotal evidence
The thought leaders all think that
this is a great idea
But, experts agreed that tonsils
should be removed
We randomly allocated people to
different conditions and found that the
second variant led to a 75% decrease in
water consumption
But, it opened the same week the
new Harry Potter book was
released
We spent $30M on a new library and found
that suddenly everyone was reading
We offered lots of free fruit in schools and
found that those who ate it ended up much
fitter and healthier
Well, maybe the healthy food
you gave them at school was
seen as a treat compared to the
quinoa they get at home
31
Using Norms to Reduce Energy
Consumption
Allcott 2011
32
How to apply BI to basic
communications
Can you find out their
name?
Can you make this
more action oriented?
What is a positive
covenant?
You have their address!
Or at least their gender?
Why use the 3rd
person?
33
How to apply BI to basic
communications What happens if I don’t?
Can you give an example of
what this is?
What was the last thing you
progressed in your personal life?
34
What do you actually need to say?
1. What they need to do.
2. How to do it.
3. What happens if they don’t.
Now look to the
EAST framework
35
Conclusions
Behavioural insights work!
With a better understanding of
people we can make better policy
We need to test our ideas to make
sure we are having the effect we
would like
We are only just starting to plumb
the depths of what BI can do for
citizens
36
NSW BI Unit Websites
Behavioural Exchange 2014
http://bx2014.org/
NSW BI Community of Practice
http://bi.dpc.nsw.gov.au/

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Applying behavioural insights to public policy

  • 1. Applying Behavioural Insights to public policy Dr Alex Gyani and Shabnam Gill
  • 2. 2 What will we be covering? • What are Behavioural Insights? • How have they been used in the UK and NSW? • How do we know that they work? • How can I apply them to my own work?
  • 3. 3 What are Behavioural Insights? Behavioural Insights Psychology Economics Public Policy Ethnography Understanding how people behave in practice, so that we can design better policies & services
  • 4. 4 A different approach to public policy Understand Build Test
  • 6. 6 Four major areas of current work Health Social Housing Domestic Violence Return to Work
  • 8. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  • 10. 10 BIT ran a trial on the ‘Tax Return Initiative’ with HM Revenue & Customs Direct to form Webpage
  • 11. 11 Removing small frictions seems to make a disproportionate difference 19.2% 23.4% Webpage Direct to Form
  • 12. 12 Significant increase in use of Private Health Insurance This led to $1.6m in additional revenue and cost offsets at Westmead Hospital 0% 5% 10% 15% 20% 25% August September October November December January % PHI 2012 % PHI 2013
  • 13. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  • 15. 15 Letters to persistent non-payers of car tax in the UK UNTAXED VEHICLE WARNING Our latest information shows you have not taxed your vehicle. PAY YOUR TAX OR LOSE YOUR [MAKE OF CAR] You have been caught driving your [make of car] untaxed. Image captured on traffic camera of untaxed car stapled on the front of the letter 2 31
  • 16. 16 % Relicensing rates of persistent offenders to DVLA letters 40.4% 42.4% 48.8% Original New New + image
  • 17. 17 NSW Office of State Revenue
  • 18. 18 NSW Penalty Notice Trial 53.5% 60.4% Control Trial
  • 19. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  • 21. 21 Nine out of ten people pay their tax on time.
  • 22. 22 UK BIT ran a trial using social norms to increase tax payment rates within 23 days (1 month) 33.6% 35.1% 35.9% 37.2% 39.0% Control (8,558) UK Norm (8,300) Local Norm (8,403) Debt Norm (8,779) Local + Debt Norm (8,643)
  • 23. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  • 25. 25 Use critical moments when you have people’s attention
  • 26. © Behavioural Insights ltd 1. Control 2. Norm 3. Norm & Picture 4. Norm & Logo
  • 27. © Behavioural Insights ltd 5. Three Die 6. Nine Lives 7. Reciprocity 8. Action
  • 28. 28 Proportion joining the organ donor register after a simple online prompt 2.3% 2.8% 2.9% 2.9% 2.9% 3.1% 3.2% 2.2% Control Take Action 1000s Heart Lives 3 Die Would you People
  • 29. 29 How did UK cyclists win? ...radical incrementalism 29
  • 30. RCTs & Systematic Reviews of RCTs Comparison study without randomisation Before and after study Editorials, Expert opinion Anecdotal evidence The thought leaders all think that this is a great idea But, experts agreed that tonsils should be removed We randomly allocated people to different conditions and found that the second variant led to a 75% decrease in water consumption But, it opened the same week the new Harry Potter book was released We spent $30M on a new library and found that suddenly everyone was reading We offered lots of free fruit in schools and found that those who ate it ended up much fitter and healthier Well, maybe the healthy food you gave them at school was seen as a treat compared to the quinoa they get at home
  • 31. 31 Using Norms to Reduce Energy Consumption Allcott 2011
  • 32. 32 How to apply BI to basic communications Can you find out their name? Can you make this more action oriented? What is a positive covenant? You have their address! Or at least their gender? Why use the 3rd person?
  • 33. 33 How to apply BI to basic communications What happens if I don’t? Can you give an example of what this is? What was the last thing you progressed in your personal life?
  • 34. 34 What do you actually need to say? 1. What they need to do. 2. How to do it. 3. What happens if they don’t. Now look to the EAST framework
  • 35. 35 Conclusions Behavioural insights work! With a better understanding of people we can make better policy We need to test our ideas to make sure we are having the effect we would like We are only just starting to plumb the depths of what BI can do for citizens
  • 36. 36 NSW BI Unit Websites Behavioural Exchange 2014 http://bx2014.org/ NSW BI Community of Practice http://bi.dpc.nsw.gov.au/