What are the best ways to get people to change their behavior for their own, and society’s, good? Seeking to avoid coercion, policymakers increasingly turn to pricing strategies, like "sin taxes" on alcohol or cigarettes. Or they resort to techniques from behavioral economics like "nudges," which employ peer pressure, moral appeals and suggestive images—such as pictures of … [Read more...] about A Simple Nudge is a Better Nudge
Behavioral Economics
Rewards Help Tax Payments Become "Contagious"
When the clock strikes midnight on December 31, it's very common to start going over one's New Year's resolutions, like doing more exercise, eating healthier food or giving up bad habits. And it's equally common to forget those resolutions only a couple weeks later. For that reason, sometimes an incentive needs to be added to the good will. Prizes that reward positive changes … [Read more...] about Rewards Help Tax Payments Become "Contagious"
Organ Donation: When Changing a Default Can Save Lives
Promotional prices can be irresistible sometimes. Who hasn’t signed up for a magazine subscription or a cable TV provider tempted by the low initial rates, and then continued paying the full price after the promotional period was over simply because canceling the subscription required taking the time to make a phone call or fill out a form. Those marketing techniques so common … [Read more...] about Organ Donation: When Changing a Default Can Save Lives
Public Information on Vaccines Can Be a Matter of Life and Death
Public information campaigns are a complex, delicate undertaking. Getting them right is crucial, as undoing the damage of misinformation is very difficult: once perceptions have been formed, it’s very hard to modify behavior. And when it comes to vaccination —an issue that has sparked controversy over the years and became news again this week— the repercussions of poor … [Read more...] about Public Information on Vaccines Can Be a Matter of Life and Death
Fighting the Spending Demon
We buy everything we crave at the supermarket; purchase the latest electronic gizmos the minute they appear; and download movies on the internet with abandon. Then we wonder why we have no money for a new car or savings for retirement. What in the world is wrong with us? The truth is that we aren't as morally weak as we think. Science shows that many of us are genetically wired … [Read more...] about Fighting the Spending Demon