Found 14 article(s) for author 'Behavioral Economics'

Human Agency and Behavioral Economics Nudging Fast and Slow

Human Agency and Behavioral Economics: Nudging Fast and Slow. Cass Sunstein, 2017, Book, “This groundbreaking series is designed to make available in book form unique behavioral economic contributions. It provides a publishing opportunity for behavioral economist authors who have a novel perspective and have developed a special ability to integrate economics with other disciplines. It will allow these authors to fully develop
their ideas. In general, it is not a place for narrow technical contributions. Theoretical/conceptual, empirical, and policy contributions are all
welcome.Link

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When Novel Rituals Impact Intergroup Bias: Evidence from Economic Games and Neurophysiology

When Novel Rituals Impact Intergroup Bias: Evidence from Economic Games and Neurophysiology. Francesca Gino, Michael Norton, January 17, 2017, Paper, “Long-established rituals in pre-existing cultural groups have been linked to the cultural evolution of group cooperation. Here we test the prediction that novel rituals – arbitrary hand and body gestures enacted in a stereotypical and repeated fashion – can impact intergroup bias in newly formed groups. In four studies, participants practiced novel rituals at home for one week (Experiments 1, 2, 4) or once in the lab (pre-registered Experiment 3), and were divided into minimal ingroups and outgroups. Our results offer mixed support for the hypothesis that novel rituals promote intergroup bias. A modest effect for daily repeated rituals but a null effect for rituals enacted only once suggests that novel rituals can inculcate bias, but only when certain features are present: rituals must be sufficiently elaborate and repeated to impact bias. Taken together, our results offer modest support for the influence of novel rituals on intergroup bias.Link

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Social Recycling Transforms Unwanted Goods into Happiness

Social Recycling Transforms Unwanted Goods into Happiness. Michael I. Norton, December 8, 2016, Paper, “Consumers are often surrounded by resources that once offered meaning or happiness but that have lost this subjective value over time—even as they retain their objective utility. We explore the potential for social recycling—disposing of used goods by allowing other consumers to acquire them at no cost—to transform unused physical resources into increased consumer happiness. Six studies suggest that social recycling increases positive affect relative to trash, recycling, and donations of goods to nonprofit organizations. Both perceptions of helping the environment and helping other people drive this increase in positive affect. We conclude that social recycling offers a scalable means for reengineering the end of the consumption cycle to transform unused resources into happiness. We suggest that further research should continue to enrich a general theory of disposition, such that we are able to maximize the ecological, interpersonal, and community utility of partially depleted resources.Link

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Self-Selection and Comparative Advantage in Social Interactions

Self-Selection and Comparative Advantage in Social Interactions. Roland Fryer, November 2016, Paper, “We propose a model of social interactions based on self-selection and comparative advantage. When students choose peer groups based on comparative advantage, the effect of moving a student into an environment with higher-achieving peers depends on where in the ability distribution she falls and the shadow prices that clear the social market. We show that the model’s key prediction—an individual’s ordinal rank predicts her behavior and test scores—is borne out in one randomized controlled trial in Kenya as well as administrative data from the U.S. To test whether our selection mechanism can explain the effect of rank on outcomes, we conduct an experiment with nearly 600 public school students in Houston. The experimental results suggest that social interactions are mediated by self-selection based on comparative advantage.Link

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Nudges That Fail

Nudges That Fail. Cass Sunstein, September 2016, Paper, “Why are some nudges ineffective, or at least less effective than choice architects hope and expect? Focusing primarily on default rules, this essay emphasizes two reasons. The first involves strong antecedent preferences on the part of choosers. The second involves successful “counternudges,” which persuade people to choose in a way that confounds the efforts of choice architects. Nudges might also be ineffective, and less effective than expected, for five other reasons.Link

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Time, Money, and Happiness

Time, Money, and Happiness. Michael Norton, August 2016, Paper, “We highlight recent research examining how people should manage their most precious resources — time and money — to maximize their happiness. Contrary to people’s intuitions, happiness may be less contingent on the sheer amount of each resource available and more on how people both think about and choose to spend them. Overall, focusing on time leads to greater happiness than focusing on money. Moreover, people enjoy greater happiness from spending money on others rather than themselves and from acquiring experiences instead of possessions. Similarly, people enjoy greater happiness from spending time on or with others and from acquiring experiences — both extraordinary and ordinary.Link

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What Works: Gender Equality by Design

What Works: Gender Equality by Design, Iris Bohnet, March 2016, Book. “Gender equality is a moral and a business imperative. But unconscious bias holds us back, and de-biasing people’s minds has proven to be difficult and expensive. Diversity training programs have had limited success, and individual effort alone often invites backlash. Behavioral design offers a new solution. By de-biasing organizations instead of individuals, we can make smart changes that have big impacts. Presenting research-based solutions, Iris Bohnet hands us the tools we need to move the needle in classrooms and boardrooms, in hiring and promotion, benefiting businesses, governments, and the lives of millions.” Link

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BUYING TIME: The Science of Happier Spending

BUYING TIME: The Science of Happier Spending. Michael I. Norton, Winter 2016, Paper. “MANY OF US WISH WE HAD MORE FREE TIME to do what we love — whether it be working out, reading or playing guitar. In theory, it is possible to use the money we earn to ‘buy’ more of this kind of time; but research suggests that even when we can afford to do so, we are not spending our time in more enjoyable ways on a regular basis.Link

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Time, Money, and Happiness

Time, Money, and Happiness. Michael I. Norton, November 4, 2015, Paper. “We highlight recent research examining how people should manage their most precious resources – time and money – to maximize their happiness. Contrary to people’s intuitions, happiness may be less contingent on the sheer amount of each resource available and more on how people both think about and choose to spend them. Overall, focusing on time leads to greater happiness than focusing on money. Moreover, people enjoy greater happiness from spending money on others rather than themselves and from acquiring experiences instead of possessions. Similarly, people enjoy greater happiness from spending time on or with others and from acquiring experiences – both extraordinary and ordinary.Link

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Regulating Internalities

Regulating Internalities. Cass Sunstein, February 2015, Paper. “This paper offers a framework for regulating internalities. Using a simple economic model, we provide four principles for designing and evaluating behaviorally-motivated policy. We then outline rules for determining which contexts reliably reflect true preferences and discuss empirical strategies for measuring internalities. As a case study, we focus on energy efficiency policy, including Corporate Average Fuel Economy (CAFE) standards and appliance and lighting energy efficiency standards.Link

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