AØKA08218U Science of behavior change

Volume 2014/2015
Education
MSc in Economic
BSc in Economic
Content

Over the last 30 years, behavioral scientists have gained a deeper understanding of what motivates people, how they process information, and what non-economic features of the choice environment influence decisions. Many of their insights challenge traditional assumptions such as rationality, self-interest, time consistency. This research program (sometimes called “Behavioral Economics” or "Psychology and Economics") has shed light on how people’s decisions deviate from “optimal” choices as well as the consequences of such deviations. But, how we can use this knowledge? How can we get people to save more money, eat healthy foods and engage in healthy behaviors, and more generally make better choices? This course allows the student to develop a hands-on approach by learning and applying the methods of behavioral economics and more importantly, how it can be harnessed by suitably designing contexts to “nudge” choice. We will review research on human decision making from psychology, political science, organizational behavior and economics and we will look for easy‐to‐implement solutions.At the end of this course, students are supposed to become “choice architects” able to identify human biases and creatively design interventions, policies or products that help people make better decisions.

Learning Outcome

-         Students will review the most recent developments and theories of human decision-making both from Economics and Psychology.

-         Students will analyze the tools of behavioral science (namely incentive, regulation, persuasion and nudging) and they will compare their effectiveness to change specific behaviors.

-         Student will reflect on how experiments and randomized controlled trials work and why this methodology is critical for making inference about causal relationships.

-         Student will debate and discuss critically several interventions that have been conducted to change people’s behavior in the domain of energy efficiency, health and well-being, dishonesty, charitable giving, education and work performance.

-         Student will examine cases where people make decisions that are inconsistent with the assumptions of rational decision making and they will identify the consequences of this irrational behavior for the society.

-         Students will design experiments and develop policy intervention aiming at ameliorate societal well-being and improve people’s life.

Students have to read critically several papers, reports, articles and news in blogs. A preliminary reading list includes:

Books:

-          Sunstein, Cass and Thaler, Richard (2008). Nudge: Improving Decisions about Health, Wealth, and Happiness. Yale University Press.

-          Cialdini, Robert (2008). Influence: Science and Practice. Prentice Hall.

-          Ariely, Dan (2008) Predictably Irrational, HarperCollins.

Papers (preliminary list):

  1. Ly, K., Mazar, N., Zhao, M., Soman, D. (2013) A Practitioner's Guide to Nudging, Research Report Series, Rotman School of Management; Issue: March; 2013
  2. DellaVigna (2009) Psychology and Economics: Evidence from The Field, Journal of Economic Literature, Vol. 47, pp. 315-372
  3. Johnson E. and Goldstein D. (2003). Do defaults save lives? Science, 302(5649), 1338-1339.
  4. Danziger (2011), Extraneous Factors in Judicial Decisions, PNAS
  5. Shu et al. (2012), Signing at the beginning makes ethics salient and decreases dishonest self-reports in comparison to signing at the end, PNAS vol. 109.
  6. Hershfield et al. (2011), Increasing Savings Behavior Through Age-Progressed Renderings of the Future Self, Journal of Marketing Research

 

Reports written for the Behavioural Insights Team ( BIT):

  1. BIT (2011) “Helping consumers make better choices and better deals”, Cabinet Office, Behavioural Insights Team, Research and analysis
  2. BIT (2012) “Test, Learn, Adapt: Developing Public Policy with Randomised Controlled Trials”, Cabinet Office, Behavioural Insights Team, Research and analysis
  3. BIT (2013) “Organ donor registrations: trialling different approaches”, Cabinet Office, Behavioural Insights Team, Research and analysis
  4. BIT (2012) “Behaviour change and energy use: behavioural insights team paper”, Cabinet Office, Behavioural Insights Team, Research and analysis
  5. BIT (2012) “Applying behavioural insight to health: behavioural insights team paper”, Cabinet Office, Behavioural Insights Team, Research and analysis
  6. BIT (2012) “Fraud, error and debt: behavioural insights team paper”, Cabinet Office, Behavioural Insights Team, Research and analysis
  7. BIT (2013) “Applying behavioural insights to charitable giving”, Cabinet Office, Behavioural Insights Team, Research and analysis

Blogs:

  1. Nudge: http://nudges.org/
  2. Danish Nudging Network: http:/​/​www.inudgeyou.com/​
  3. BIT: https:/​/​www.gov.uk/​government/​organisations/​behavioural-insights-team
  4. Ideas 42: http://www.ideas42.org/
  5. Dan Ariely: http:/​/​danariely.com/​category/​blog/​
A sound knowledge of microeconomics and game theory is required.
The course consists of 21 lectures of 2 hours. Tuesday from 13.00 to 15.00 every week and Friday 15.00 -17.00 even weeks

The course is taught in English. Student participation will be expected and encouraged. An active discussion in class is essential for an effective peer learning. Some guest speakers (TBA) will present their ongoing research.

- Student will examine cases where people make decisions that are inconsistent with the assumptions of rational decision making and they will identify the consequences of this irrational behavior for the society.

- Students will design experiments and develop policy intervention aiming at ameliorate societal well-being and improve people’s life.
  • Category
  • Hours
  • Exam
  • 2
  • Lectures
  • 42
  • Preparation
  • 162
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination under invigilation
2 hours closed book written exam at computers.
The final exam (three questions) covers the content of the entire lecture. The language of examination is English.
Marking scale
7-point grading scale
Censorship form
External censorship
Exam period
January 2015
Re-exam
Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. This means that the examination date also will change.
Criteria for exam assesment

To be able to sit in class and take the final exam, students have to present and discuss in class (at least) one of the papers in the reading list that will be distributed at the beginning of the course.