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Nudge Design Presentation

Honors option assignment studying nudge design.

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Nudge Design Presentation

  1. 1. What is Nudge Design? FA 102d Honors Option Fall 2014 Presented by Amanda Bentley
  2. 2. What are the dimensions of these tables? Nudge Design Amanda Bentley
  3. 3. Nudge Design Amanda Bentley Explanation of Table Test • Tabletops are equal length • Human judgment is biased • Confidence in incorrect answer
  4. 4. Nudge Design Amanda Bentley Nudge Design Definition “A nudge, as we will use the term, is any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid.” Page 6 of Thaler & Sunstein’s Nudge: Improving Decisions about Health, Wealth & Happiness (2008)
  5. 5. Nudge Design Amanda Bentley Nudge Design Definition • Understanding how decision making takes place • Given right context, pushed into particular behavior • Changes way choices are presented
  6. 6. Nudge Design Amanda Bentley Nudge Design Uses • Encourage positive behavior • Shaping emotion/ attitude toward brand • Consciously “changing” behavior is new • Use knowledge of nudge design to make a positive impact on society
  7. 7. Nudge Design Amanda Bentley Opposition to Nudge Design • “Big Brother” • Idea that it limits choices • Some think it is “forcing” a behavior • Guided by economics
  8. 8. Nudge Design Amanda Bentley Human Nature Influence on Decisions • As seen in tabletop test • Cognitive bias; mental shortcuts • Many conscious and unconscious factors
  9. 9. Nudge Design Amanda Bentley Framing Example You buy a small coffee in the Student Center every morning. It is usually $2.50. Today, they raised the price and it is now $3 for your morning coffee.
  10. 10. Nudge Design Amanda Bentley Framing Definition Judging options as losses or gains relative to some perceived starting reference point
  11. 11. Design Tip • Encourage positive behavior by emphasizing associated gains rather than associated losses • To discourage a behavior, make it seem undesirable by emphasizing associated losses Nudge Design Amanda Bentley
  12. 12. Nudge Design Amanda Bentley Default Bias Example Do you all sit in assigned seats? No? Are you sitting in the same seat everyday anyway? How much do you tend to tip waiters?
  13. 13. Nudge Design Amanda Bentley Default Bias Definition The tendency to go along with an existing situation or selection rather than taking action to change it; therefore, more likely to choose default setting.
  14. 14. Nudge Design Amanda Bentley Design Tip • To encourage a specific option, make it the default • Likewise, to discourage a specific option, don’t make it the default
  15. 15. Nudge Design Amanda Bentley Present Bias Example Who online shops regularly? Do you wait to buy something until it goes on sale? Have you ever spent extra on expedited shipping when regular shipping would only take 4-5 days?
  16. 16. Nudge Design Amanda Bentley Present Bias Definition Time plays a big role in decision making; people generally prefer gains that happen in the present (instant gratification) to gains that occur in the future (time discounting).
  17. 17. Nudge Design Amanda Bentley Design Tip • To encourage a behavior where the positive outcomes are delayed, introduce present benefits to make the desired outcome more appealing • To encourage a behavior usually associated with a loss, delay losses so they occur in the future
  18. 18. Nudge Design Amanda Bentley Choices as a 21st Century Designer 1. Ignore what you know 2. Participate openly 3. Quietly manipulate behavior
  19. 19. Nudge Design Amanda Bentley How to Make Change at Hofstra See something you don’t like? Use the nudge design tools you just learned to fix it! • Healthy food choices in the Student Center • Donations in the atrium • Moral choices of your peers