Richard Thaler, the University of Chicago professor who fused psychological insights and economics to reveal how biases affect decision-making, was awarded Oct. 8 the 2017 Nobel Prize in economics. The award, which recognizes Thaler's work in overturning assumptions about economic behavior as rational and demonstrating how people could be "nudged" to make better choices, … [Read more...] about How Nobel Ideas Inspired the IDB
A Simple Nudge is a Better Nudge
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
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"
Stepping in to Save Women’s and Babies’ Lives
The decision to give birth in one's village rather than a health facility is often a fatal one for women in Latin America. Too many women die in the time immediately before and after delivery from hemorrhages, hypertension and sepsis, conditions easily treated in a modern health facility. Their babies often die with them or in the week following. Yet, culture and poverty can … [Read more...] about Stepping in to Save Women’s and Babies’ Lives
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