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Behavioral Economics & Design
Stefan Müller, HCI Remixed
„In the early days of industrial design,
  the work was primarily focused upon
  physical products. Today, designers
  work on organizational structure
  and social problems on interaction,
  service, and experience design.... As a
  result, designers have become applied
  behavioral scientists, but they are
  woefully undereducated for the task.”

Don Norman. 2010. „Why Design Education Must Change“. Core77.com
Dan Ariely: Predictably Irrational

„Visual Illusions as a metaphor for
irrationality (a.k.a. cognitive illusions)”
“We think that we make rational decisions. But most decisions actually
don’t lie within us but within the people who end up designing the forms.”
“We think that we make rational decisions. But most decisions actually

don’t lie within us but within the people who end up designing the forms.”
“We think that we make rational decisions. But most decisions actually

don’t lie within us but within the people who end up designing the forms.”
16%

0%

84%
68%

                                                             32%




The “useless” option actually helped people figure out what they wanted.

We actually don’t know our preferences that well and are hence open to these
influences.
“What a piece of work is a man! how
 noble in reason! how infinite in faculty!
 in form and moving how express and
 admirable! in action how like an angel!
 in apprehension how like a god!”
 Will Shakespeare (Act II,scene 2, of Hamlet)




Standard Economics
Behavioural Economics
“We build products that work with our
 physical limitations. Chairs, shoes, and
 cars are all designed to complement
 and enhance our physical capabilities...




Behavioural Economics
... If we take some of the same lessons
 we’ve learned from working with our
 physical limitations and apply them to
 things that are affected by our cognitive
 limitations—insurance policies,
 retirement plans, and healthcare—
 we’ll be able to design more effective
 policies and tools, that are more useful
 in the world...

Behavioural Economics
... This is the promise of behavioral
 economics – once we understand
 where we are weak or wrong we can try
 to fix it and build a better world.”
 Dan Ariely




Behavioural Economics
Some examples...
UK Design Council’s RED Unit
UK Design Council’s RED Unit
Health
A RED project form 2005
Health
A RED project form 2005
Health
A RED project form 2005
Health
A RED project form 2005
Health
A RED project form 2005
Participle
Addressing the big social issues of our time.
InWithFor
“Our problem? Too many families-in-crisis, interfacing with state systems,

and too few families thriving.”
Public Sector projects
@ IDEO
Public Sector projects
@ IDEO
Public Sector projects
@ IDEO
Social Innovation
@ frog

“Mobile technology as a accelerator of positive social change”
Social Design
@ Think Public

Working exclusively with the public sector, third sector and communities.
Social Design
@ Think Public

Working exclusively with the public sector, third sector and communities.
“We need a new form of design
  education, one with more rigor, more
  science, and more attention to the
  social and behavioral sciences, to
  modern technology, and to business.
  But we cannot copy the existing
  courses from those disciplines:
  we need to establish new ones
  that are appropriate to the unique
  requirements... of design.”
Don Norman. 2010. „Why Design Education Must Change“. Core77.com
Ende

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Design Practise & Behavioral Economics

  • 1. Behavioral Economics & Design Stefan Müller, HCI Remixed
  • 2. „In the early days of industrial design, the work was primarily focused upon physical products. Today, designers work on organizational structure and social problems on interaction, service, and experience design.... As a result, designers have become applied behavioral scientists, but they are woefully undereducated for the task.” Don Norman. 2010. „Why Design Education Must Change“. Core77.com
  • 3. Dan Ariely: Predictably Irrational „Visual Illusions as a metaphor for irrationality (a.k.a. cognitive illusions)”
  • 4. “We think that we make rational decisions. But most decisions actually don’t lie within us but within the people who end up designing the forms.”
  • 5. “We think that we make rational decisions. But most decisions actually don’t lie within us but within the people who end up designing the forms.”
  • 6. “We think that we make rational decisions. But most decisions actually don’t lie within us but within the people who end up designing the forms.”
  • 8.
  • 9. 68% 32% The “useless” option actually helped people figure out what they wanted. We actually don’t know our preferences that well and are hence open to these influences.
  • 10. “What a piece of work is a man! how noble in reason! how infinite in faculty! in form and moving how express and admirable! in action how like an angel! in apprehension how like a god!” Will Shakespeare (Act II,scene 2, of Hamlet) Standard Economics
  • 12. “We build products that work with our physical limitations. Chairs, shoes, and cars are all designed to complement and enhance our physical capabilities... Behavioural Economics
  • 13. ... If we take some of the same lessons we’ve learned from working with our physical limitations and apply them to things that are affected by our cognitive limitations—insurance policies, retirement plans, and healthcare— we’ll be able to design more effective policies and tools, that are more useful in the world... Behavioural Economics
  • 14. ... This is the promise of behavioral economics – once we understand where we are weak or wrong we can try to fix it and build a better world.” Dan Ariely Behavioural Economics
  • 18. Health A RED project form 2005
  • 19. Health A RED project form 2005
  • 20. Health A RED project form 2005
  • 21. Health A RED project form 2005
  • 22. Health A RED project form 2005
  • 23. Participle Addressing the big social issues of our time.
  • 24.
  • 25. InWithFor “Our problem? Too many families-in-crisis, interfacing with state systems, and too few families thriving.”
  • 29. Social Innovation @ frog “Mobile technology as a accelerator of positive social change”
  • 30. Social Design @ Think Public Working exclusively with the public sector, third sector and communities.
  • 31. Social Design @ Think Public Working exclusively with the public sector, third sector and communities.
  • 32. “We need a new form of design education, one with more rigor, more science, and more attention to the social and behavioral sciences, to modern technology, and to business. But we cannot copy the existing courses from those disciplines: we need to establish new ones that are appropriate to the unique requirements... of design.” Don Norman. 2010. „Why Design Education Must Change“. Core77.com
  • 33. Ende