Behavioral economics is increasingly recognizing that personal experiences and biology play a major role in shaping decision-making. Research shows that life experiences can influence beliefs and choices long after events occur, even among experts. This perspective suggests that behavior is shaped not only by information and incentives but also by emotions, development, and lived experience.
Applied behavioural science is facing some tough challenges, in the form of an ongoing replication crisis and a public debate on limits to nudging (including COVID-related stumbles). At the same time, we believe there is reason to be optimistic: the fusing of behavioural knowledge with data science methods means that we can see some of these shared challenges in a completely new light. In this article, we show how a transformation of our interactions with consumers and employees can usher in a new age for the field.
