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HOW TO BE HAPPY
DR. PAUL

MARSDEN

PSYCHOLOGIST
@marsattacks
Behavioural Economics and “Happy Nudges”
3 Weeks
Smiling selfies
Photos of things that make
you happy
Sending photos of things you
think will make others happy
+22% happier
Smartphone happiness
Source: Chen, Y., Mark, G., & Ali, S. (2016). Promoting positive affect through smartphone photography. Psychology of Well-Being, 6(1), 1-16.
Positive Psychology
Science and practice of improving wellbeing
–Baruch Spinoza
“Everyone wants continuous and genuine happiness.”
What is this thing called happiness?
What is this thing called happiness?
Being happy in life Being happy with life
Being happy in life
Frequency of positive affect
Active
Attentive
Determined
Enthusiastic
Excited
Inspired Interested
Proud Strong
Alert
Infrequency of negative affect
Afraid
Distressed
Guilty
Hostile
Irritable
Jittery Nervous
Scared Upset
Ashamed
Watson, D., Clark, L. A., & Tellegen, A. (1988). Development and validation of brief measures of positive and negative affect: the PANAS scales. Journal of personality and social psychology,
Being happy with life
You Your Ideal Life
Overall satisfaction with life
Memory, Experience, Anticipation
Few regrets
Regrets
Hedonia and Eudaimonia
Being happy in life Being happy with life Meaning/Purpose
BE & Happiness?
Positive choice architecture?
• Positive nudge towards outcomes associated with positive feelings
• Positive nudge towards outcomes associated with ideals
• Positive reframing of past, present and future
What are the things that make people happy?
Genes
50%
Activities
40%
Circumstances
10%
What are the things that make people happy?
It’s the little things 

“happy nudges”
Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.
Sometimes big life events have
small effects on happiness
Sometimes big life events have
small effects on happiness
Sometimes big life events have
small effects on happiness
Sometimes big life events have
small effects on happiness
Sometimes big life events have
small effects on happiness
Happy surprises and set-points
Although we may respond to unexpected positive events with short term surges in
happiness, we return to our happiness set point or baseline (hedonic treadmill)
Happy surprise!
• Happiness happens when unexpected positive events happen, but we have a
natural happiness set-point to which we return
“Happy nudges”
• Little behavioural changes can make big differences to happiness
Expressing gratitude Cultivating optimism
Avoiding
overthinking and
social comparison
Practising acts of
kindness
Nurturing
relationships
Developing strategies
for coping
Learning to forgive
Doing more activities
that truly engage you
Savoring life’s joys
Committing to your
goals
Practising religion
and spirituality
Taking care of your
body (eating well/
exercising)
Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.
“Happy nudges”
• “Positive psychology” uses simple clinically validated behavioural techniques
to improve happiness
Every evening as you clean your
teeth, think of three good things
that happened to you that day,
and ask yourself why they
happened
“Happy nudges”
Autonomy
Our universal need
for autonomy is about
self-determination;
experiencing
freedom, choice and
control.
Relatedness
Our universal need
for relatedness is
about giving and
experiencing
attachment, security
and love.
Competence
Our universal need
for competence is
about experiencing
mastery
achievement, and
success.
• The ARC of Happiness (self-determination theory) - improving people’s
sense of autonomy, relatedness or competence, improves happiness
Happy nudges
Autonomy
vs. Helplessness – do
we feel in control or
do we feel helpless to
circumstance and
systems?
Relatedness
vs. Isolation – do we
feel cared for
by others, or do we
feel left behind,
alone and isolated?
Competence
vs. Frustration – do we
experience mastery
and achievement, or
are our goals put out
of reach?
• President Trump’s campaign focused on the ARC of happiness
Happy nudges
• Activate Autonomy - How might a choice promote a sense 

of autonomy, freedom or control?
• Reward Relatedness - How might a choice

help people care for and feel cared for by others?
• Cultivate Competence - How might a choice help

people feel that more competent and proficient?
Promoting a sense of Autonomy (Stitch Fix, Nike)
Promoting a sense of Relatedness (CuteCircuit hugshirt, Nike/Lululemon communities)
Promoting a sense of Competence (Nike, Under Armour)
Customer Experience is Worthless
Memories of Customer Experience are Priceless
customer experience
we only remember the peak moment and the end moment
peak
end
we only remember the peak moment and the end moment
peak
end
remembered
experience
Thinking, Fast and Slow
• The part you may have missed
• Happiness - it’s complicated…
• Happy experiences vs happy memories
• ‘Experiencing Self’ vs ‘Remembering Self’
PAININTENSITY
10
9
8
7
6
5
4
3
2
1
0
PATIENT A
PAININTENSITY
10
9
8
7
6
5
4
3
2
1
0
5 10 15 20
TIME (MINUTES)
PATIENT B
TIME (MINUTES)
5 10
Experienced more pain, remembered less pain
The Peak/End Rule
18 Positive Design Interventions
to promote happiness
Brands with happiest
users grow 2x category
average
Brands with 5+ years
sustained growth
have 2x happier users
Source Bain/Reichheld, 2011
The care of human life
and happiness… is the
only legitimate object of
good government
The care of human life
and happiness… is the
only legitimate object of
good behavioural
economics
Thomas Jefferson 1809
–Jeremy Bentham
How can we become agents of positive change and put
Behavioural Economics to the service of human
happiness?
“The greatest happiness for the greatest number.”

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Happy Nudges - Behavioural Economics and Happiness

  • 1. HOW TO BE HAPPY DR. PAUL MARSDEN PSYCHOLOGIST @marsattacks Behavioural Economics and “Happy Nudges”
  • 2.
  • 3. 3 Weeks Smiling selfies Photos of things that make you happy Sending photos of things you think will make others happy +22% happier Smartphone happiness Source: Chen, Y., Mark, G., & Ali, S. (2016). Promoting positive affect through smartphone photography. Psychology of Well-Being, 6(1), 1-16.
  • 4. Positive Psychology Science and practice of improving wellbeing
  • 5. –Baruch Spinoza “Everyone wants continuous and genuine happiness.”
  • 6.
  • 7. What is this thing called happiness?
  • 8. What is this thing called happiness? Being happy in life Being happy with life
  • 9. Being happy in life Frequency of positive affect Active Attentive Determined Enthusiastic Excited Inspired Interested Proud Strong Alert Infrequency of negative affect Afraid Distressed Guilty Hostile Irritable Jittery Nervous Scared Upset Ashamed Watson, D., Clark, L. A., & Tellegen, A. (1988). Development and validation of brief measures of positive and negative affect: the PANAS scales. Journal of personality and social psychology,
  • 10. Being happy with life You Your Ideal Life Overall satisfaction with life Memory, Experience, Anticipation Few regrets Regrets
  • 11. Hedonia and Eudaimonia Being happy in life Being happy with life Meaning/Purpose
  • 12. BE & Happiness? Positive choice architecture? • Positive nudge towards outcomes associated with positive feelings • Positive nudge towards outcomes associated with ideals • Positive reframing of past, present and future
  • 13. What are the things that make people happy?
  • 14. Genes 50% Activities 40% Circumstances 10% What are the things that make people happy? It’s the little things 
 “happy nudges” Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.
  • 15. Sometimes big life events have small effects on happiness
  • 16. Sometimes big life events have small effects on happiness
  • 17. Sometimes big life events have small effects on happiness
  • 18. Sometimes big life events have small effects on happiness
  • 19. Sometimes big life events have small effects on happiness
  • 20. Happy surprises and set-points Although we may respond to unexpected positive events with short term surges in happiness, we return to our happiness set point or baseline (hedonic treadmill) Happy surprise! • Happiness happens when unexpected positive events happen, but we have a natural happiness set-point to which we return
  • 21. “Happy nudges” • Little behavioural changes can make big differences to happiness Expressing gratitude Cultivating optimism Avoiding overthinking and social comparison Practising acts of kindness Nurturing relationships Developing strategies for coping Learning to forgive Doing more activities that truly engage you Savoring life’s joys Committing to your goals Practising religion and spirituality Taking care of your body (eating well/ exercising) Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.
  • 22. “Happy nudges” • “Positive psychology” uses simple clinically validated behavioural techniques to improve happiness Every evening as you clean your teeth, think of three good things that happened to you that day, and ask yourself why they happened
  • 23. “Happy nudges” Autonomy Our universal need for autonomy is about self-determination; experiencing freedom, choice and control. Relatedness Our universal need for relatedness is about giving and experiencing attachment, security and love. Competence Our universal need for competence is about experiencing mastery achievement, and success. • The ARC of Happiness (self-determination theory) - improving people’s sense of autonomy, relatedness or competence, improves happiness
  • 24. Happy nudges Autonomy vs. Helplessness – do we feel in control or do we feel helpless to circumstance and systems? Relatedness vs. Isolation – do we feel cared for by others, or do we feel left behind, alone and isolated? Competence vs. Frustration – do we experience mastery and achievement, or are our goals put out of reach? • President Trump’s campaign focused on the ARC of happiness
  • 25. Happy nudges • Activate Autonomy - How might a choice promote a sense 
 of autonomy, freedom or control? • Reward Relatedness - How might a choice
 help people care for and feel cared for by others? • Cultivate Competence - How might a choice help
 people feel that more competent and proficient?
  • 26. Promoting a sense of Autonomy (Stitch Fix, Nike)
  • 27. Promoting a sense of Relatedness (CuteCircuit hugshirt, Nike/Lululemon communities)
  • 28. Promoting a sense of Competence (Nike, Under Armour)
  • 30. Memories of Customer Experience are Priceless
  • 32. we only remember the peak moment and the end moment peak end
  • 33. we only remember the peak moment and the end moment peak end remembered experience
  • 34.
  • 35. Thinking, Fast and Slow • The part you may have missed • Happiness - it’s complicated… • Happy experiences vs happy memories • ‘Experiencing Self’ vs ‘Remembering Self’
  • 36.
  • 37.
  • 38. PAININTENSITY 10 9 8 7 6 5 4 3 2 1 0 PATIENT A PAININTENSITY 10 9 8 7 6 5 4 3 2 1 0 5 10 15 20 TIME (MINUTES) PATIENT B TIME (MINUTES) 5 10 Experienced more pain, remembered less pain
  • 40. 18 Positive Design Interventions to promote happiness
  • 41. Brands with happiest users grow 2x category average Brands with 5+ years sustained growth have 2x happier users Source Bain/Reichheld, 2011
  • 42. The care of human life and happiness… is the only legitimate object of good government The care of human life and happiness… is the only legitimate object of good behavioural economics Thomas Jefferson 1809
  • 43. –Jeremy Bentham How can we become agents of positive change and put Behavioural Economics to the service of human happiness? “The greatest happiness for the greatest number.”