Found 23 article(s) for author 'Behavioral Economics'

Trusting Nudges: Toward A Bill of Rights for Nudging

Trusting Nudges: Toward A Bill of Rights for Nudging. Cass Sunstein, 2018, Book, “Many “nudges” aim to make life simpler, safer, or easier for people to navigate, but what do members of the public really think about these policies? Drawing on surveys from numerous nations around the world, Sunstein and Reisch explore whether citizens approve of nudge policies. Their most important finding is simple and striking. In diverse countries, both democratic and nondemocratic, strong majorities approve of nudges designed to promote health, safety, and environmental protection—and their approval cuts across political divisions.Link

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Behavioral Development Economics

Behavioral Development Economics. Michael Kremer, Gautam Rao, December 4, 2018, Paper, “Behavioral development economics applies theories and ideas from psychology and behavioral economics to the study of questions in development economics. We begin by examining a central puzzle in development economics: the existence of high rates of return without correspondingly rapid growth (the “Euler equation puzzle”). We discuss the extent to which present bias and loss aversion can help resolve this puzzle. We next consider various topics in development, including preventive health, savings, insurance, technology adoption, labor markets, and firms. We discuss particular behavioral theories that can help explain some key facts in each literature and describe the existing empirical evidence.Link

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Intertemporal Choice

Intertemporal Choice. David Laibson, December 2018, Paper, “Intertemporal tradeoffs play a key role in many personal decisions and policy questions. We describe models of intertemporal choice, identify empirical regularities in choice, and pose new questions for research. The focus for intertemporal choice research is no longer whether the exponential discounted utility model is empirically accurate, but, instead, what models best explain the robust behavioral deviations we observe. We introduce the term “present-focused preferences” to describe the large class of models that prioritize present flows of experienced utility. Present-focused preferences need not coincide with a preference for commitment or dynamically inconsistent preferences. Present-bias is a special case of present-focused preferences.Link

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Identifiable Service Provider Effect: When Guilt Undermines Consumer Willingness To Buy Time

Identifiable Service Provider Effect: When Guilt Undermines Consumer Willingness To Buy Time. Ashley Whillans, 2018, Paper, “In 2011, Time Magazine rated the sharing economy as one of the top 10 ideas that would change the world. Today, the possibility of outsourcing just about anything from grocery shopping, to dog walking, to standing in line for the latest iPhone is only a few clicks away. Companies such as TaskRabbit and Hello Alfred enable customers to outsource nearly any household chore by connecting people who need tasks done with people who have time to do them. With the growing popularity of the sharing economy, it has never been easier for consumers to outsource their most dreaded tasks to others. Yet, despite the rise of the sharing economy, very little is known about when individuals decide to ‘buy time.’Link

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Valuing time over money is associated with greater social connection

Valuing time over money is associated with greater social connection. Ashley Whillans, August 2, 2018, Paper, “Can the trade-offs that people make between time and money shape our social relationships? Across three studies, utilizing self-report (N = 127; N = 249) and behavioral outcomes (N = 358), we provide the first evidence that the chronic orientation to prioritize time over money encourages greater investment in daily social interactions. For example, in Study 2, respondents who valued time spent 18% longer socializing with a new peer than respondents who valued money. These findings could not be explained by extraversion (Study 1) or by demographic characteristics such as age, gender, or socioeconomic status (Studies 1 to 3). Together, these studies suggest that valuing time over money facilitates social connection.Link

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Behavioral Household Finance

Behavioral Household Finance, John Beshears, David Laibson, Brigitte Madrian, July 2018, Paper, “This chapter provides an overview of household finance. The first part summarizes key facts regarding household financial behavior, emphasizing empirical regularities that are inconsistent with the standard classical economic model and discussing extensions of the classical model and explanations grounded in behavioral economics that can account for the observed patterns. This part covers five topics: consumption and savings, borrowing, payments, asset allocation, and insurance. The second part addresses interventions that firms, governments, and other parties deploy to shape household financial outcomes: education and information, peer effects and social influence, product design, advice and disclosure, choice architecture, and interventions that directly target prices or quantities.Link

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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

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Uber Shows How Not to Apply Behavioral Economics

Uber Shows How Not to Apply Behavioral Economics. Francesca Gino, April 13, 2017, Case, “A recent New York Times article on how Uber is using various insights from behavioral economics to push, or nudge, its drivers to pick up more fares — sometimes with little benefit to them — has generated quite a bit of criticism of Uber. It’s just one of several stories of late that have cast the company in a poor light.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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