The past decade has been a triumph for behavioural economics...[which] is one of the hottest ideas in public policy....Yet, as with any success story, the backlash has begun. Critics argue that the field is overhyped, trivial, unreliable, a smokescreen for bad policy, an intellectual dead-end – or possibly all of the above. Is behavioural economics doomed to reflect the limitations of its intellectual parents, psychology and economics? Or can it build on their strengths and offer a powerful set of tools for policy makers and academics alike?
In his new book, Risk Savvy, Psychologist Gerd Gigerenzer uses this ‘Turkey Illusion’ to challenge our reliance on data.
Imagine you’re a turkey. As a turkey you don’t know about Thanksgiving or Christmas. Every day a farmer brings you food, so despite your fear on day one, each day’s experience builds your certainty that visits from the farmer are a good thing. Your assumed probability of survival increases every day, until, at the point of highest certainty, you become dead meat.
Gigerenzer asserts that intuition and heuristics (i.e. mental rules of thumb) can often trump data, even in areas like financial forecasting. He draws turkey parallels with the financial crisis in 2008, arguing that updating probabilities based on experience isn’t a bad model per se, but in situations with unknown risks (e.g. Thanksgiving), it can create ‘illusory certainty’ and catch us out.
Daniel Kahnemann, a nobel prize winning behavioral psychologist, has determined that perception of lifelong happiness has an "end-bias". Essentially his thesis, which he seems to have proven through extensive empirical ...
The Myth Of The Myth Of The Hot Hand Deadspin In 1985, in one of the most famous contemporary papers in cognitive psychology, Thomas Gilovich, Robert Vallone, and Amos Tversky (hereafter GVT) took aim at the hot hand.
Applying Behavioral Economics to Improve Microsavings Outcomes. It's no secret that saving money is a good idea. Even when funds are tight, putting away a small amount on a regular basis can mitigate unforeseen emergencies and enable ...
Behavioral Boozeonomics from the New York Behavioral Economics Network
Thursday, Jun 19, 2014, 5:30 PM
The Penny Farthing NYC 103 3rd Avenue (corner of 3rd Ave & 13th St)
16 Members Attending
Behavioral Boozeonomics from the New York Behavioral Economics Network - two years success on the London pub scene, now coming to New York!
Interested in behavioral economics or psychology and applying them in marketing or public policy? Come along and join your fellow enthusiasts for a drink on the third Thursday of every month.
Based on the succe...
Behavioral Boozeonomics from the New York Behavioral Economics Network - two years success on the London pub scene, now coming to New York! Interested in behavioral economics or psychology and applyin (Behavioral Boozeonomics Meetup.
Empathy — it’s a buzzword in the UX design world. Everybody’s doing it! But what exactly are they doing? There isn’t a quick “Empathy Filter” that we can apply to our work or our team, no formula to pump out results, and no magic words to bring it forth.
There is, however, a simple workshop activity that you can facilitate with stakeholders (or anyone responsible for product development, really) to build empathy for your end users. We call it Persona Empathy Mapping.
Location-based social networks are allowing scientists to study the way human patterns of behavior change in time and space, a technique that should eventually lead to deeper insights into the nature of society.
Behavioural Exchange 2014 is the world’s first global public policy behavioural insights conference, bringing expert academics and practitioners from around the world to Sydney from 2-3 June 2014.
Behavioural approaches are really about “restoring common sense to economics”. These were the provocative words of Richard Thaler – Professor Behavioral Science and Economics at the University of Chicago Booth School of Business and co-author of Nudge – while speaking via video link atBX2014, the world’s first public policy behavioural insights conference, which concluded in Sydney on 3 June. The interplay between orthodox economics, psychology, and so-called ‘common sense’ was a recurring theme of the two-day conference, which brought together leading academics and practitioners from across the world to discuss behavioural innovations in public policy.
The conference included talks from many of the world’s leading thinkers in behavioural economics and policy making. Alongside Richard Thaler was his co-author,Cass Sunstein, and Professors Max Bazerman, Iris Bohnet, David Laibson, Michael Norton, and Michael Hiscox from Harvard’s Behavioral Insights Group. They were joined by those at the policy making end of the spectrum, with BIT Chief Executive, Dr David Halpern, Dr Maya Shankar from the White House, and Dr Thia Jang Ping and Mr Donald Low from the Government of Singapore. Reflecting Australia’s growing interest in applying behavioural approaches to public policy, BX2014 also brought together senior public servants from the Government of New South Wales , as well as representatives from private sector firms, such as Facebook.
The conference covered a range of topics, from the merits of design thinking and the hope of big data, to the importance of RCTs in driving evidence-based decision-making. But it was perhaps the ethos that underpins behaviourally-informed policy that anchored the discussions. Participants challenged speakers on the centrality of ethics and transparency in designing nudges, and the need to elevate a culture of experimentation in the public sector. Speakers also highlighted that the empirically-focussed approach to public policy that behavioural insights demands requires humility: we have to accept that context is critical to the success of any intervention, so we must admit that we don’t really know what will work until we have tried it and tested it to a high degree of scientific rigour. This way, by taking account of sometimes seemingly trivial details of implementation, public policy can be delivered better and with greater efficiency.
This thing we call empathy is strong in our little HSCs. No matter how it expresses itself, it's important that we recognize it, understand it, nurture it.
As an adult, I can confirm that these strong empathetic feelings cease to be brought up by objects.
. Yes, sometimes it makes us sad when we lose or break or sell something, but it’s sadness we feel, not empathy. Having to sell an old car makes us sad because it was part of our lives for so long, because of the memories that come with it, because of the stories it gave us, and not because we are hurting its feelings (unless you make the mistake of naming your car like I did my poor old Betsie). Instead, our empathy is incredibly strong for people, and all those other things we used to feel change into deep love and respect for things, animals and nature.
People don't always act rationally. In fact, they tend to act irrationally - but in predictable ways. In this video, four marketing professors from the Rotma... (RT @DavidHoffeld: Behavioral Economics.
It seems startling, but a California scientist has made an interesting discovery about how we connect with our social circles. It seems the brain can’t tell the difference between ‘real’ social interaction like kissing, hugging, talking to someone...
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