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Introduction to Behavioral Economics
Rui Mata
Center for Cognitive and Decision Sciences
University of Basel
Behavioral and life style factors are key determinants of health
http://thelancet.com/gbd/gbd-compare-visualisation
Wang, H., Naghavi, M., Allen, C., Barber, R. M., Bhutta, Z. A., Carter, A., et al. (2016). Global, regional, and national life
expectancy, all-cause mortality, and cause-specific mortality for 249 causes of death, 1980–2015: A systematic analysis for
the Global Burden of Disease Study 2015. The Lancet, 388(10053), 1459–1544.
Behavioral sciences as a potential solution
Daniel Kahneman Richard Thaler
20082011
2002 Nobel Memorial Prize
in Economic Sciences
2017 Nobel Memorial Prize
in Economic Sciences
Nudges
1. help decision makers achieve a desired goal
2. exploit known cognitive/motivational shortcomings
3. affect features over which people claim not to care
about (e.g., position in a list, defaults, framing)
4. are in principle reversible, allowing the chooser to
decide freely
Grüne-Yanoff, T., & Hertwig, R. (2015). Nudge versus Boost: How coherent are policy and theory?
Minds and Machines, 1–35.
A taxonomy of behavioral change techniques
Michie, S., van Stralen, M. M., & West, R. (2011). The behaviour change wheel: A new method for
characterising and designing behaviour change interventions. Implementation Science, 6(1), 42.
Education
Persuasion IncentivisationCoercion
Restriction Training
Restructuring
Modeling
Enablement
Evaluation is key but evidence is lacking
Incentivisation can work but lacks sustainability and long-term impact
John, L. K., Loewenstein, G., Troxel, A. B., Norton, L., Fassbender, J. E., & Volpp, K. G. (2011). Financial incentives for
extended weight loss: A randomized, controlled trial. Journal of General Internal Medicine, 26(6), 621–626.
Incentivisation may not work for everyone
Kupferschmidt, K. (2017). The science of persuasion. Science, 356(6336), 366–369.
Betsch, C., Böhm, R., & Chapman, G. B. (2015). Using behavioral insights to increase vaccination policy effectiveness.
Policy Insights From the Behavioral and Brain Sciences, 2(1), 61–73.
Brewer, N. T., Chapman, G. B., Rothman, A. J., Leask, J., & Kempe, A. (2017). Increasing vaccination: Putting psychological
science into action. Psychological Science in the Public Interest, 18(3), 149–207.
Incentivisation may not work for everyone
Different reasons for non-vaccination
Confidence Complacency Convenience Calculation
Incentivisation ✔ ✔ ✔
Debunking ✔
Reminders ✔
Betsch, C., Böhm, R., & Chapman, G. B. (2015). Using behavioral insights to increase vaccination policy effectiveness.
Policy Insights From the Behavioral and Brain Sciences, 2(1), 61–73.
Brewer, N. T., Chapman, G. B., Rothman, A. J., Leask, J., & Kempe, A. (2017). Increasing vaccination: Putting psychological
science into action. Psychological Science in the Public Interest, 18(3), 149–207.
Incentivisation may not work for everyone
Different reasons for non-vaccination
Confidence Complacency Convenience Calculation
Incentivisation ✔ ✔ ✔
Debunking ✔
Reminders ✔
Future directions
Michie, S., Thomas, J., Johnston, M., Mac Aonghusa, P., Shawe-Taylor, J., Kelly, M. P., et al. (2017). The Human
Behaviour-Change Project: Harnessing the power of artificial intelligence and machine learning for evidence synthesis
and interpretation, 1–12. http://doi.org/10.1186/s13012-017-0641-5
Digitalisation and automatisation of experimentation and research synthesis
http://www.ucl.ac.uk/human-behaviour-change
Human Behaviour-Change Project
Take Home Message
Nudges are a promising but only one of several tools in the
behavioral-change toolkit
Promise of digital deployment and automated evaluations
Challenges regarding the use of nudges in healthcare
- few studies and research syntheses so far
- limited sustainability and long-term impact
- heterogeneity of target populations

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Introduction to behavioral economics

  • 1. Introduction to Behavioral Economics Rui Mata Center for Cognitive and Decision Sciences University of Basel
  • 2. Behavioral and life style factors are key determinants of health http://thelancet.com/gbd/gbd-compare-visualisation Wang, H., Naghavi, M., Allen, C., Barber, R. M., Bhutta, Z. A., Carter, A., et al. (2016). Global, regional, and national life expectancy, all-cause mortality, and cause-specific mortality for 249 causes of death, 1980–2015: A systematic analysis for the Global Burden of Disease Study 2015. The Lancet, 388(10053), 1459–1544.
  • 3. Behavioral sciences as a potential solution Daniel Kahneman Richard Thaler 20082011 2002 Nobel Memorial Prize in Economic Sciences 2017 Nobel Memorial Prize in Economic Sciences
  • 4.
  • 5.
  • 6. Nudges 1. help decision makers achieve a desired goal 2. exploit known cognitive/motivational shortcomings 3. affect features over which people claim not to care about (e.g., position in a list, defaults, framing) 4. are in principle reversible, allowing the chooser to decide freely Grüne-Yanoff, T., & Hertwig, R. (2015). Nudge versus Boost: How coherent are policy and theory? Minds and Machines, 1–35.
  • 7.
  • 8. A taxonomy of behavioral change techniques Michie, S., van Stralen, M. M., & West, R. (2011). The behaviour change wheel: A new method for characterising and designing behaviour change interventions. Implementation Science, 6(1), 42. Education Persuasion IncentivisationCoercion Restriction Training Restructuring Modeling Enablement
  • 9. Evaluation is key but evidence is lacking
  • 10. Incentivisation can work but lacks sustainability and long-term impact John, L. K., Loewenstein, G., Troxel, A. B., Norton, L., Fassbender, J. E., & Volpp, K. G. (2011). Financial incentives for extended weight loss: A randomized, controlled trial. Journal of General Internal Medicine, 26(6), 621–626.
  • 11. Incentivisation may not work for everyone Kupferschmidt, K. (2017). The science of persuasion. Science, 356(6336), 366–369.
  • 12. Betsch, C., Böhm, R., & Chapman, G. B. (2015). Using behavioral insights to increase vaccination policy effectiveness. Policy Insights From the Behavioral and Brain Sciences, 2(1), 61–73. Brewer, N. T., Chapman, G. B., Rothman, A. J., Leask, J., & Kempe, A. (2017). Increasing vaccination: Putting psychological science into action. Psychological Science in the Public Interest, 18(3), 149–207. Incentivisation may not work for everyone Different reasons for non-vaccination Confidence Complacency Convenience Calculation Incentivisation ✔ ✔ ✔ Debunking ✔ Reminders ✔
  • 13. Betsch, C., Böhm, R., & Chapman, G. B. (2015). Using behavioral insights to increase vaccination policy effectiveness. Policy Insights From the Behavioral and Brain Sciences, 2(1), 61–73. Brewer, N. T., Chapman, G. B., Rothman, A. J., Leask, J., & Kempe, A. (2017). Increasing vaccination: Putting psychological science into action. Psychological Science in the Public Interest, 18(3), 149–207. Incentivisation may not work for everyone Different reasons for non-vaccination Confidence Complacency Convenience Calculation Incentivisation ✔ ✔ ✔ Debunking ✔ Reminders ✔
  • 14. Future directions Michie, S., Thomas, J., Johnston, M., Mac Aonghusa, P., Shawe-Taylor, J., Kelly, M. P., et al. (2017). The Human Behaviour-Change Project: Harnessing the power of artificial intelligence and machine learning for evidence synthesis and interpretation, 1–12. http://doi.org/10.1186/s13012-017-0641-5 Digitalisation and automatisation of experimentation and research synthesis http://www.ucl.ac.uk/human-behaviour-change Human Behaviour-Change Project
  • 15. Take Home Message Nudges are a promising but only one of several tools in the behavioral-change toolkit Promise of digital deployment and automated evaluations Challenges regarding the use of nudges in healthcare - few studies and research syntheses so far - limited sustainability and long-term impact - heterogeneity of target populations