Task 1 Flashcards
Nudge Definition
Any aspect of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic environment
(choice architecture = aspect of social/physical environment that makes a particular option more attractive, preferred or even the default choice)
- changing the behaviour, NOT attitude without blocking any options or making one option much better than the others (not making them more costly or so), no consequences
- choice preserving approach that steers people in a particular direction, but that allows them to go their own way
- should be easy and cheap to avoid –> no mandates
- umbrella term for deliberate & predictable methods of changing ppl behaviour by modifying the cues in the physical and/or social context in which they act
> uses these cues to activate unconscious thought processes involved in human decision-making
Goal of (many) nudges
- steer someone towards a specific option & away from alternatives
- make life simpler for people to navigate (road signs, education campaigns)
- still preserve freedom of choice
- to inform ppl & ensure that their choices are informed
Principles of nudges
- Simplification & framing of information
- changes to the physical environment
- changes to the default option
- use of (descriptive) social norms
Prospects of nudges
- evidence-based
- testing of interventions in real-life context
- randomised control trials
What is NOT a nudge?
- prompts
- banning junk food, blocking stairs so that people use elevator
Dual Process Theory
theory behind nudging
slow, conscious process
vs
quick, effortless, non conscious process
Nudge Theory
Nudge Theory Toolkit:
- Understand & validate the required change
- Check for obstacles
- Check for unhelpful existing nudges
- Remove obstacles & establish support
- explore which environmental/circumstantial factors can be altered/introduced (=the nudge)
Dual systems theory in real life
- Behaviours are guided by processes that operate outside of conscious awareness
- many decisions not made based on lengthy deliberate thinking but quick & automatic heuristic processing
- ppl often do not have time/motivation/cognitive resources to carefully & consciously think through all decisions they make throughout they
System 1 nudge
explanation
- nudges take advantage of unconscious interaction between person & environment
- -> System 1 way of thinking
- making use of flaws that affect automatic unconscious processes & passive decision-making (like ppl don’t give full attention to their options) then to follow path of “least resistance”, they lack clear preferences & complete information and choices will inevitably be influenced by default rules, frames & starting points
Benefits of nudges
- low or no costs
- sometimes deliver prompt results
- maintain freedom
- can be highly effective
- sometimes more impact than more expensive & coercive tools
When are nudges appropriate?
- when choices have delayed effects
- perhaps no benefit in moment but later (stairs & health) - when they are complex or infrequent & thus learning is not possible
- When feedback is not available
- When the relation between choice & outcome is unclear
Thaler & Sunstein
Types of nudges
- changing standard options
- changing physical environment
- providing the possibility of correct impulsive choices
- providing feedback on choices
Hansen & Jesperson
Types of nudges
4 categories:
- unconscious vs conscious
transparent vs non-transparent
System 1 Nudge
- e.g defaults and sequential orderings
- uses automatic cognitive processing
- viewed less favourably than System 2 nudges
- perceived as more autonomy threatening
- System 1 nudges more likely to operate without awareness of decision maker by relying on implicit defaults and status quo options
- can be more automatic
- operate less directly on cognition and more directly on behaviour
–> perceived as more autonomy threatening
System 2 Nudge
- e.g. educational opportunities or reminders
- uses more deliberative processing
- more effortful and more transparent
- viewed as more effective for better decision making and more necessary for changing behaviour
- nudges provide information (& possibly education) that may make people more aware & presumably more thoughtful about their decisions
–> perceived as more effective for making good decisions and more necessary for behaviour change
Type 1 Nudge (Hansen & Jesperson)
aimed at influencing behaviour maintained by automatic thinking or consequences therefore without involving reflective thinking
- those influencing behaviour that so not involve deliberation, judgement and choice
(e. g. size of plates, narrowing side-lines on roads)
Type 2 Nudge (Hansen & Jesperson)
- aimed at influencing attention and premises of - and hence the behaviour anchored in reflective thinking/choices/inflencing automatic system
- those influencing behaviours best characterised as actions, results of deliberation, judgement and choice
(e. g. fly in urinal)
Transparent nudge
individuals understand expected behavioural change & means by which it likely to occur
Transparent Type 1 Nudge
reflective thinking is not engaged in what causes the behaviour change in question
–> reflective thinking is by-product
e.g. playing relaxing music while passengers board plane to calm them down
Transparent Type 2 Nudge
engages in reflective system in a away that mens it easy for citizen to reconstruct intentions and means by which behaviour change is pursued
e.f. fly in urinal, prompted choice for organ-donation
Non-Transparent Nudge
Individuals less likely to recognise the possibility of behaviour change, and they cannot reconstruct the means by which changes could occur
Non-Transparent Type 1 Nudge
causes behaviour change without reflective system and in a way that doesn’t make it likely to be recognised and transparent
- -> e.g. mindless eating, smaller dinner plates
e. g. changing of background defaults (organ donation)
Non-Transparent Type 2 Nudge
reflective system has to be engaged but doesn’t happen in a way that by itself gives people epistemic accede to intentions and means by which influence is pursued
e. g.
- clever framing of risks aimed to influence one’s decision-making
- aimed at affecting decision-making by clever framing, compliance, anchoring
10 important nudges according to Sunstein
- default nudge
- Simplification of current requirements
- reminders
- eliciting implementation intentions
- use of social norms
- increases in ease & convenience
- disclosure
- warnings (graphics or other)
- recommitment strategies
- informing people of nature & consequences of their own past choices