Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
Prisoner's Dilemma is a paradox in decision analysis in which two individuals acting in their own best interest pursue a course of action that does not result in the ideal outcome. The typical prisoner's dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result of following a purely logical thought process to help oneself, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process.
In this session, we will be looking at The Prisoner's Dilemma and how it affects our decision making, group and team dynamics, business decisions. We'll look at real world case studies and nature with a goal of understanding this dilemma better.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
Prisoner's Dilemma is a paradox in decision analysis in which two individuals acting in their own best interest pursue a course of action that does not result in the ideal outcome. The typical prisoner's dilemma is set up in such a way that both parties choose to protect themselves at the expense of the other participant. As a result of following a purely logical thought process to help oneself, both participants find themselves in a worse state than if they had cooperated with each other in the decision-making process.
In this session, we will be looking at The Prisoner's Dilemma and how it affects our decision making, group and team dynamics, business decisions. We'll look at real world case studies and nature with a goal of understanding this dilemma better.
This is a managerial economics presentation on "Game Theory: Prisoners Dilemma" , presented by myself Peerzada Basim. I am a Business student pursuing IMBA degree at University of Kashmir.
I hope this presentation will suffice your need and curiosity of knowing what Game Theory is.
Thank you.
This is a managerial economics presentation on "Game Theory: Prisoners Dilemma" , presented by myself Peerzada Basim. I am a Business student pursuing IMBA degree at University of Kashmir.
I hope this presentation will suffice your need and curiosity of knowing what Game Theory is.
Thank you.
EU Onshore Insurance Protected Cells - Captives on a BudgetIan-Edward Stafrace
The use of EU onshore Protected Cells as a capital efficient, cost-effective, flexible and secure alternative to owning a standalone insurer or captive, together with the benefits PCCs offer under Solvency II. Presentation by Ian-Edward Stafrace to the Financial Services In Malta conference in Stockholm Oct 2011 on Insurance Protected Cell Companies (PCC)
Driving higher performance from Google AdWords by applying Behavioural Economicspaulsbooth
A new study shows that when Behavioural Economics thinking is applied to Google AdWords, performance improves and new areas of insight and learning are opened up.
The Power of Cognitive Interviewing... and what qualitative research can lear...Merlien Institute
at Qualitative360 North America 2014
1-3 April 2014, Toronto, Canada
This event is proudly organised by Merlien Live
Check out our upcoming events by visiting http://qual360.com/
The conference on Food Safety and Nutrition in 2050 – organised by Directorate-General for Health and Food Safety of the European Commission – provided an opportunity for dialogue among global stakeholders on the emerging challenges to the food chain and the role of future policy-making in addressing those challenges.
The conference also provided the opportunity to foster a dialogue on consumers' expectations for safe, nutritious, quality and sustainable food and the role of food science, technology and innovation in achieving them. Held on 17 July 2015 in Milan, Italy.
Event Programme. The Malta Forum of Internal Auditors (MFIA) and the Malta Association of Risk Management (MARM) are jointly organising a seminar on risk and internal audit, which should interest all those working in these two fields as well as anybody interested in learning more on these areas. This will be held on Wednesday 13th July 2016 at 1400 hours at the Corinthia Palace, Attard, Malta.
Applications of Behavioural Economics to consumer insightErica van Lieven
Shown at the AMSRS National Conference 2013 this presentation on Behavioural economics by Ben Wright highlights the very interesting findings from a small exploratory study that could serve as the basis to the beginnings of a revolutionary measure in the market research industry.
Increasingly qualitative research participant recruiters are being presented with locked bespoke quantitative segmentation tools, and no explanation of what defines the sample qualitatively. This is fraught with problems and does not lead to good recruitment. Similarly, recruiting on statistical demographic models: it’s too easy to recruit atypical outliers – when very small samples are required – if the focus is on the quantitative model rather than the desired demographics, attitudes and behaviours. To do a great job, qualitative recruiters need qualitative input and briefing – we’ll explain why, and provide explicit action points for planning and procuring better participant recruitment in future.
The use of EU onshore Protected Cells as a capital efficient, cost-effective, flexible and secure alternative to owning a standalone insurer or captive. Presentation by Ian-Edward Stafrace to the UK IRM Global Risk Management Professional Development Forum 2011
Futuring Friday 2017 Festival of NewMR 2017Ray Poynter
Lenny Murphy, Ray Poynter and guests Kristin Luck and Melanie Courtright survey the near and middle future for market research.
This session draws on the recent GRIT report as well as other leading sources and indicators as well as the panels’ extensive involvement with the future of market research and insight.
Behavioural Economics content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Alternative Views of Consumer Behaviour
Behavioural Biases
Nudges
Short: Using Behavioural Economics to sell carbon-reducing products & initiat...The Hunting Dynasty
We use Behavioural Economics to create communications that sell carbon-reducing products & initiatives (including to people who might not be interested).
See how we do it with this short and sweet trot through the sector.
rganizational behavior (OB) is a field of study that focuses on understanding, explaining, and improving the behavior of individuals and groups within organizations. It is concerned with how people behave in work settings, how organizations affect their behavior, and how individuals and groups interact with each other and with the larger organizational context.
Organizational behavior draws from a variety of disciplines, including psychology, sociology, anthropology, and economics. It encompasses topics such as motivation, leadership, communication, group dynamics, decision-making, organizational culture, and organizational change.
The goal of organizational behavior research is to develop a better understanding of why people behave the way they do in work settings and to identify ways to improve organizational performance and employee well-being. This knowledge can be applied in a variety of settings, including businesses, government agencies, and non-profit organizations.
This guidance issued by the Malta Association of Risk Management (MARM) is intended to describe a base level of competencies for a professional risk manager to function effectively in any sector. The document covers:
● Roles of the Risk Manager - describes the tasks associated with each role and common or likely requirements supporting the achievement of these tasks
● Required Competencies - outlines the competencies required of a risk manager to effectively carry out the roles the Roles of a Risk Manager
● Demonstrating Competence - outlines ways in which these competencies can be demonstrated to third parties by risk managers
The Federation of European Risk Management Associations (FERMA) will be holding its Forum in Monte Carlo between 15 and 18 October 2017. The Malta Association of Risk Management (MARM, a FERMA member) will be participating and encourages local risk managers to join.
http://www.ferma.eu/ferma-forum-2017/
Improving risk-return and resilience through Enterprise Risk Management — Jul...Ian-Edward Stafrace
The incentive for organisations to be resilient goes well beyond merely avoiding disaster. Companies confident in their risk management can be more enterprising, thereby not only identifying risks but also seizing opportunities. Practical examples will also be included in areas such as scenario analysis and risk culture, which will demonstrate the type of knowledge, skills and tools tomorrow’s risk manager needs to have.
Here is the slide deck used by Julia Graham in her presentation at the MARM MAS UOM collaborative event on the value of risk and actuarial functions held in March 2017. http://www.slideshare.net/ianstaf/15-march-2017-half-day-seminar-obtaining-more-value-from-risk-actuarial-functions
15 March 2017 Half Day Seminar - Obtaining More Value From Risk & Actuarial F...Ian-Edward Stafrace
Most insurers based in Malta ten years ago would not have had formal risk or actuarial functions, other than those in life business. Fast forward to present day and all have had to implement these as key functions expected by regulations. Beyond compliance are these functions providing added value to the business?
On 15 March a half day seminar with a focus on the insurance sector organised jointly by the Malta Association of Risk Management (MARM), the Malta Actuarial Society (MAS) and the University of Malta will aim to provide insight and thought leadership gained from experienced risk and actuarial professionals on how organisations embed and make best use of these new functions. We will also briefly show how insurers operating internationally can deal with challenges posed by OECD’s BEPS project. The event will be concluded by a panel session discussing emerging risks and opportunities. We are also very pleased to have the keynote delivered by Julia Graham, an internationally renowned risk and insurance professional.
Cyber Resilience presented at the Malta Association of Risk Management (MARM) Cybercrime Seminar of 24 June 2013 by Mr Donald Tabone. Mr Tabone, Associate Director and Head of Information Protection and Business Resilience Services at KPMG Malta, presented a six-point action plan corporate entities can follow in order to reach a sustainable level of cyber resilience.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
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⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
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➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
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Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
2. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
3. Economics...
Any aspect of human behaviour that involves the allocation of scarce
resources
…the study of choice
Like all science, economics
develops and applies theories,
applies assumptions.
The standard, or neo-classical, economic model is the dominant
framework for thinking about consumer welfare and consumer choice.
FOUNDATIONS
4. Practical men, who believe themselves to be quite
exempt from any intellectual influences, are usually
the slaves of some defunct economist.”
John Maynard Keynes
FOUNDATIONS
5. Example
Implicit assumption about how people make decisions
1. They perceive a situation.
2. They think of possible courses of action
3. They calculate which course is in their best interest.
4. They take action accordingly
STANDARD ECONOMIC MODEL
6. More specifically
•Is a Bayesian Information Processor
•With well-defined and stable preferences
•Who maximises expected utility
•Who applies exponential discounting rules
•Who is self-interested (narrowly defined)
•Who has preferences over outcomes not changes relative to a reference point
•Who has only instrumental tastes for beliefs and information
(Rabin: The “Dead Parrot” of Economics)
In short...
Individuals are assumed to be like computers
Can effortlessly process data and compute their optimal
choice
STANDARD ECONOMIC MODEL
7. If we assume decisions are made this way, we can believe in..
- Informing decisions to achieve behavioural change
- Using economic incentives to achieve behavioural change
- Limiting the scope for government
STANDARD ECONOMIC MODEL
8. Example:
How do we assume that people make decisions about savings?
They weigh up their consumption in the current and future periods.
They use all relevant information in making their savings choices;
They choose a level of consumption and saving that maximises their
lifetime utility.
STANDARD ECONOMIC MODEL
9. But we often observe people....
Paying for a gym they will never use....
Investing in lotteries rather than saving...
Leaving credit card bills outstanding ...
Taking up smoking...
Taking out a mobile phone contract with large upfront payments...
Buying cars they cannot afford to maintain...
Donating blood...
Reacting negatively to performance bonuses….
BEHAVIOURAL ECONOMICS
10. From initial doubts...
1. People are generally rational BUT
2. Emotions such as fear, affection, hatred explain most
departures from rationality.
...to the idea of “Satisfising” (Simon)
Information consumes the attention of its recipients.
..to ”heuristics” (Tversky & Kahneman)
Rules of thumb that can lead to systematic biases
…and behavioural economics
Relaxing the standard economic assumption that
everyone in the economy is rational and selfish.
SEM as a special case.
BEHAVIOURAL ECONOMICS
11. Behavioural economics increases the explanatory power of
economics by providing it with more realistic psychological
foundations
Camerer and Loewenstein 2004
BEHAVIOURAL ECONOMICS
13. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
15. The endowment effect
occurs when a person’s preferences depend upon what they
already possess.
implies that a person’s preferences depend upon a certain
reference point, perhaps determined by the person’s
possessions.
ENDOWMENT EFFECT
16. Kahneman and Tversky (1979) PROSPECT THEORY
embodies both
The endowment effect
Loss aversion
is more complex than utility theory
has sharp implications for how markets function
Is useful when prospects (most) are mixed eg.
starting a company
running for elections
PROSPECT THEORY
18. Anchoring and adjustment:
A process used when forming judgments: we first pick an initial estimate (an
anchor), then adjust up or down as necessary.
The estimate does not have to be related to the good.
Nor does the anchor have to be consciously chosen by the consumer.
ANCHORING AND ADJUSTMENT
19. Choice paradox
Although increased choice is perceived as desirable, in some
circumstances, the provision of choice either inhibits decision
makers’ likelihood to make a choice or detrimentally affects
their experienced well-being after the choice is made….
CHOICE PARADOX
20. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
24. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
25. Time Inconsistency
One’s behavior is time consistent if their preferences over two
options do not change just because time has passed.
The standard model of exponential discounting fails to capture the
manner in which people’s preferences appear to change over time.
TIME INCONSISTENCY
26. Preferences over Profiles
People might also have preferences over shapes of utility
profiles.
They might prefer increasing profiles, and/or like to end on
a high note.
PREFERENCES OVER PROFILES
27. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
28. Strategic interactions
Limited strategic thinking
Altruism – pure or impure
Envy
Fairness
Betrayal aversion
Reciprocity
Trust
Peer effects
Group Processes
29. Successful investing is anticipating the anticipations
of others.
John Maynard Keynes
STRATEGIC INTERACTION
30. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
32. Example of problems…
Savings too low to fund retirement
Obesity rates and chronic illness levels
Consumption patterns unsustainable
….ripe for BE solutions
simplified interventions
changing “default options”
mandating “cooling off periods”
application of “nudges” “choice architecture”
INTERVENTION
33. All errors which he is likely to commit against advice and
warning, are far outweighed by the evil of allowing others to
constrain him to what they deem his good.
JS Mill
It is impossible not to meddle. Given that we can’t avoid
meddling, let’s meddle in a good way.
R Thaler.
INTERVENTION
34. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
35. It's not a case of: 'Read this book and then you'll think
differently. I've written this book, and I don't think
differently.
Daniel Kahneman
36. Examples of empowering self
- Avoiding decisions when S2 is depleted
- Committing self to reach goals
- Choosing the right peer groups
- Changing default options
- Availability beats cognition
37. The Automatic Millionaire: #1 selling business book of 2004
Make savings automatic so that you don’t notice it (payroll
deductions, automatic withdraws from checking, mortgage
payment, etc.)
PRE COMMITMENT
38. 1. Background
2. How we really make choices
3. How we handle risk
4. Decisions about the future
5. Choice and other people
6. Influencing decisions
7. Making better decisions
8. Conclusion
39. Homo Economicus
Individuals make choices to maximize utility under constraints they face
In uncertainty, individuals maximize expected utility by assigning
probabilities to different states of the world
Vs Homo Sapiens
People are complicated
WAY FORWARD
40. “We are just at the beginning!”
Daniel Kahneman
WAY FORWARD
41. Resources
marie.briguglio@um.edu.mt
A Course in Behavioral Economics, by Erik Angner (Palgrave
Macmillan, 2012).
An Introduction to Behavioral Economics: A Guide for Students by
Nick Wilkinson (2008).
“Nudge” by Thaler and Sunstein;
Ariely’s “Predictably Irrational”;
"Exotic Preferences" by Lowenstein and
Frey and Stutzer’s economics and psychology.
Thaler, Richard and Cass Sunstein. Nudge: Improving Decisions about
Health, Wealth and Happiness. New Haven: Yale University Press,
2008.
Behavioural Economics
YOUTUBE CHANNEL
via www.mariebriguglio.com
Due acknowledgement to Liam Delaney and Russell James for some of the slide contents.