Behavioural Science, Rationality and Public Policy

The language of rationality is closely tied to ideas from behavioural science, economics and nudge theory, but how does it shape the way we make public policy and should we be casting it under a critical eye? Read this post to find out more.

By | November 24th, 2017|

What is the Future of Behavioral Research and Large-scale Nudges? Five Practical Tips

By Nathan Maddix   Can nudging overcome physics envy? As is now well-known, tremendous results have been found for nudges – behavioral interventions designed to facilitate choice for welfare-promoting outcomes. In my work over the last 5 years, I have sought not only to design and administer nudges, but also to understand how economists and [...]

By | October 31st, 2017|

Applying Behavioral Science to App Design: A Short Journey

Like many of you, I work in problem domains that are bedeviled by complexities, often in dispersed teams of people with different skills. New technologies are thrown into this problem solving mix with an accompaniment of overwhelming hyperbole on a daily basis. It soon becomes a case of struggling to see the forest for the trees. How exactly do we marry behavioral science, app design and engineering in an organized, coherent and repeatable manner in such a workplace?

By | September 25th, 2017|

Changing Your Mind

Changing one’s mind is a difficult, painful process. What kind of appeals are effective at changing the minds of others? How can you work on evaluating information objectively, such that you would reconsider your previous ideas?

By | August 21st, 2017|

Mental Money: The Psychology of Subscription Payment Options

What goes through your head when choosing between different payment options?

By | July 17th, 2017|

Now Available: The Behavioral Economics Guide 2017

Our fourth annual BE Guide is out!

By | June 15th, 2017|

What Do We Know about Trust?

Every year, millions of people invest money in projects they may not fully understand and, by choosing to do so, they reveal one of the most important values that holds our society and our economy together: trust. What do we know about trust? Read this post to find out.

By | May 31st, 2017|

Myopic Loss Aversion: A Behavioral Answer to the Equity Premium Puzzle?

Stocks yield much higher returns than bonds and other riskless securities. In fact, in the last 100 years US equities have seen an 8% average annual real return, compared to only a 1% return for more riskless securities. This gap is called the equity premium puzzle – why are equities valued so much higher than securities? One behavioral theory attributes the equity premium puzzle to what’s known as myopic loss aversion (MLA) – the idea that loss-averse investors (as all investors are) take too short-term a view of their investments, leading them to react overly negatively to short-term losses. We designed the first natural field experimental evidence to show that MLA exists for professional traders.

By | April 7th, 2017|

Information Avoidance in the Information Age

Ignorance is bliss: How much would you pay to avoid threatening information?

By | March 17th, 2017|

Three Ways the Internet of Things Is Shaping Consumer Behavior

The interconnection of devices within the “Internet of Things” (IoT) creates new data sources. Companies can now better observe people’s choices and test the effectiveness of different mechanisms to activate and retain more customers. It may also help policymakers overcome one of the most frequent problems of policy design: the lack of personalized content. We argue that the IoT not only disrupts the way we track our actions and monitor our goals, but also allows the identification of effective methods to alter our behavior. This is optimized by the combination of IoT, data analytics and behavioral science.

By | February 28th, 2017|

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