A free online course on behavioural insights for public policy from the Behavioral Economics Team of the Australian government

This chapter illustrates how the Swachh Bharat Mission (SBM) and the Beti Bachao Beti Padhao (BBBP) have successfully employed behavioural insights. Using such learning, the chapter lays out an ambitious agenda for social change: (i) from BBBP to BADLAV (Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi); (ii) from Swachh Bharat to Sundar Bharat; (iii) from “Give it up” for the LPG subsidy to “Think about the Subsidy”; and (iv) from tax evasion to tax compliance. First, a key principle of behavioural economics is that while people’s behaviour is influenced significantly by social norms, understanding the drivers of these social norms can enable change. In India, where social and religious norms play such a dominant role in influencing behaviour, behavioural economics can therefore provide a valuable instrument for change. So, beneficial social norms can be furthered by drawing attention to positive influencers, especially friends/ neighbours that represent role models with which people can identify. Second, as people are given to tremendous inertia when making a choice, they prefer sticking to the default option. By the nearly costless act of changing the default to overcome this inertia, desired behaviour can be encouraged without affecting people’s choices. Third, as people find it difficult to sustain good habits, repeated reinforcements and reminders of successful past actions can help sustain changed behaviour

Nudges span an exceedingly wide range, and their number and variety are constantly growing. Here is a catalogue of ten important nudges — very possibly, the most important for purposes of policy — along with a few explanatory comments.

However, nudges aimed at reducing carbon emissions could have a pernicious indirect effect if they offer the promise of a ‘quick fix’ and thereby undermine support for policies of greater impact.

Given the central role of anger in shaping adversarial policy preferences in the context of intergroup conflict, its reduction may promote conflict resolution. In the current work, we drew on psycholinguistic research on the role of language in generating emotions to explore a novel, extremely subtle means of intervention. Specifically, we hypothesized that phrasing conflict-relevant policies in noun form (vs. verb form) would reduce anger and impact policy support correspondingly. Results across three experimental studies in the context of the Israeli-Palestinian conflict supported these expectations for both support for concessions (Studies 1–3) and retaliatory policies (Study 3), with reduction in anger mediating the salutary impact of noun form (vs. verb form) on policy support. These results expand our understanding of the influence of language on emotions and policies in the context of conflict and have applied relevance for conflict-resolution efforts. (1) (PDF) A Rose by Any Other Name? A Subtle Linguistic Cue Impacts Anger and Corresponding Policy Support in Intractable Conflict. Available from: https://www.researchgate.net/publication/322150387_A_Rose_by_Any_Other_Name_A_Subtle_Linguistic_Cue_Impacts_Anger_and_Corresponding_Policy_Support_in_Intractable_Conflict [accessed May 02 2019].

To gain a better understanding of how to build a successful nudge unit, we recently talked to 14 experts who have led initiatives in sectors from financial services and healthcare to advertising and retail (see sidebar, “Fourteen experts forging the future”). Most stressed that while nudging is a catchy term, it does not do full justice to the broad applications of behavioral science to the businesses for which they and their units are responsible. Behavioral science, for instance, encompasses debiasing and other tools for driving behavioral change, including incentives, education, and awareness.

This report is a summary of the work of the Behavioural Insights Team and its partners from September 2017 to November 2018. It includes highlights from our six offices around the world – in London, Manchester, New York, Singapore, Sydney and Wellington. We also cover our growing portfolio of BI Ventures, products that draw on behavioural insights to make positive social impact.

This report aims to capture both the spread and form of behavioral science in 10 countries, selected based on being innovators or early adopters in the field: Australia, Canada, Denmark, France, Germany, Netherlands, Peru, Singapore, the U.S., and the UK. We hope that the experiences of these ten countries – including information on As of November 2018, there are at least 202 public entities all over the world applying behavioral insights to their policies (OECD, 2018) COUNTRY PROFILES - INTRODUCTION — 07 — how public bodies within these countries are integrating behavioral insights, how they are working to apply behavioral insights, and how these behavioral functions have been structured and staffed – can serve as useful information for all those working to leverage behavioral science to improve society. Given the expansion of behavioral science within governments; the shifting behavioral insights landscape; and the limit to, and wide distribution of, public information; this report presents a representative snapshot of the state of behavioral science within the governments of the profiled countries.

Week 1 When Everything Looks Like a Nail: Building Better “Behavioral Economics” Teams By Jason Collins Nudges Alone Won’t Save Nemo: Conservation in the Great Barrier Reef By John Pickering From Ph.D. to Policy: Facilitating Connections Between Junior Scholars and Policymakers By Ashley Whillans and Heather Devine Shouldn’t We Make It Easy to Use Behavioral Science for Good? By Manasee Desai RCTs Are Not (Always) the Answer By Tania Ramos and João Matos Week 2 Why Governments Need to Nudge Themselves By Michael Hallsworth and Mark Egan Behavioral Development Economics By Syon Bhanot and Aishwarya Deshpande Why Governments Should Treat Cybersecurity the Way They Do Infectious Diseases By Karen Renaud and Stephen Flowerday Pour One Out for Nudge’s Forgotten Peers By Jesse Dashefsky Helping Parents Follow Through By Nadav Klein, Keri Lintz, Ariel Kalil, and Susan E. Mayer Week 3 A New Model for Integrating Behavioral Science and Design By Sarah Reid and Ruth Schmidt Applying Behavioral Science Upstream in the Policy Design Process By Kate Phillips Lessons in “Nudging” From the Developing World By Abigail Goodnow Dalton Choice Architecture 2.0: How People Interpret and Make Sense of Nudges By Job Krijnen What the Origins of the “1 in 5” Statistic Teaches Us About Sexual Assault Policy By Alexandra Rutherford BONUS Nudge Turns 10: A Q&A With Cass Sunstein By Elizabeth Weingarten Nudge Turns 10: A Q&A With Ricard Thaler By Evan Nesterak

This report discusses the use and reach of behavioural insights, drawing on a comprehensive collection of over 100 applications across the world and policy sectors.

But to be effective, nudges should be calibrated; “one size fits all” approaches tend to fall short of expectations. Instead, policymakers can tailor their nudges to align with these three dimensions: Spectrums of acceptability (and deviance). How strictly must targets adhere to the rule? While driving a couple of miles over the speed limit is unlikely to result in a traffic violation, attempting to bring a weapon onto an airplane requires zero-tolerance enforcement. Frequency of action. How often must the target group provide input? It may be easier to have targets make a single decision to contribute or obey, as opposed to encouraging them to repeatedly make the same decision over time. For example, people usually only need to choose to be an organ donor once, but drivers put their seat belt on every time they get into a car. Target group diversity. How heterogeneous is your target group? People may come from different socioeconomic backgrounds, have different interests, or may speak another language, all of which makes it challenging to apply a blanket rule with universal success. Moreover, targets can be geographically scattered or online, making it difficult for policymakers to surveil the target group. For example, all vehicle owners must register their cars, but not everyone should seek the same preventative medical treatments. And even those that do require similar treatments may have different motivations for doing so.

Our work published this week analyses all 111 cases studies of behavioral techniques used by governments compiled by the OECD (Organisation for Economic Co-operation and Development). Our analysis demonstrates that none of the techniques used have scientific proven effectiveness.

The table below provides guidance for thinking through when specific policy tools are useful and when choice architecture or nudging can be used to complement or enhance a particular strategy.

How-to for govts to set up a nudge unit

But you have to get System 1 onside in the first place. Decisions have three big levers – in branding, in politics, in anything else. We call them Fame, Feeling & Fluency. Does a choice come to mind easily (Fame)? Then it’s a good choice. Does a choice feel good? (Feeling) Then it’s a good choice. Is a choice easy to recognise and understand? (Fluency) Then it’s a good choice.

Results of Social and Behavioral Sciences Team's Nudges

Nudge + Networks

Illustrates the power of policy to bring about voluntary behavior change