By Han Nim Jang, Casper Hsieh, Jun Li Course code: RSM450 Judgment and Decisions Professor Nina Mazar This powerpoint talks about ways to nudge people to recycle using judgment and decision tools learned in class.

1. Nudging People to Recycle
Using Judgment & Decision Tools
Casper Hsieh
Han Nim Jang
Jun Li

2. Agenda
1. Background
2. Programs
3. Experiments
4. Success Metric
5. Conclusion

3. Problem
Success
Background Programs Experiment Conclusion
Metric

4. Why the Problem Exists
• Confusion
• No loss
• No Incentive
Success
Background Programs Experiment Conclusion
Metric

5. Programs
1. Reduction in Choices
2. Posters
3. Penalty System
Success
Background Programs Experiment Conclusion
Metric

6. Reduction in Choices
1. Analysis Paralysis
2. Rational Ignorance
Success
Background Programs Experiment Conclusion
Metric

7. Reduction in Choices
Success
Background Programs Experiment Conclusion
Metric

8. Posters
Recycling Area
Public Area
Fine Payment Area
Success
Background Programs Experiment Conclusion
Metric

9. Recycling Area
Cognitive Dissonance
Peer Effect
Success
Background Programs Experiment Conclusion
Metric

10. In Public
Anticipated Regret
Prospect Theory
(Loss Aversion)
Success
Background Programs Experiment Conclusion
Metric

11. Payment Location
Opportunity Cost
Salience
Success
Background Programs Experiment Conclusion
Metric

12. Penalty System
• Public / Private
Success
Background Programs Experiment Conclusion
Metric

13. Public Private
 Streets
Definition  Shopping malls  Residential Area
 Movie Theatres
 High Frequency  High Frequency
Penalty
 Small Amount  Large Amount
Enforcers Police officers / Security Public inspectors
Success
Background Programs Experiment Conclusion
Metric

14. Private
Households:
 Government issued plastic bags
 Easily accessible
Exception: Condominium
Difficult to monitor and identify the households
Unrealistic
Costs outweigh benefits
Future importance
Success
Background Programs Experiment Conclusion
Metric

15. Payment System
 Location: Government Agency
 No prepayment
 Time limit
 Lateness charges
Success
Background Programs Experiment Conclusion
Metric

16. Experiment
Garbage
1 Garbage
Recycle
Garbage
2 Recycle Wrong Compartment
Recycle 3
Right Compartment
Measurement:
1) % of garbage in recycling
2) % of recycled items in the garbage
3) % of recycled items in the wrong recycling compartments.
Success
Background Programs Experiment Conclusion
Metric

17. Control Group
69%
70%
60%
50%
40%
31%
Percentage
30% 18%
20%
10%
0%
Garbage in Recycling Recycling Items in Recycling Items in
Compartment Incorrect Recycling Garbage
Compartment
Success
Background Programs Experiment Conclusion
Metric

18. Experiment #1
Success
Background Programs Experiment Conclusion
Metric

19. Results
Experiment #2: Poster Program
69%
70%
60%
50%
40% 31%
Percentage 27% Control Group
30%
18% Poster Program
20%
10% 2% 3%
0%
Garbage in Recycling Recycling Items in Recycling Items in
Compartment Incorrect Recycling Garbage
Compartment
Success
Background Programs Experiment Conclusion
Metric

20. Experiment #2
Paradox of Choice
Success
Background Programs Experiment Conclusion
Metric

21. Results
Experiment #2: Reduction in Choices
69%
70%
60%
50%
40%
Percentage
30% 24% Control Group
18% Reduction in Choice
20%
6%
10%
0%
Garbage in Recycling Items
Recycling in Garbage
Compartment
Success
Background Programs Experiment Conclusion
Metric

22. Limitations
• Sample size is small
• Statistically insignificant
• Assumption in behavior
• Hard to identify is clear causal relationship
Success
Background Programs Experiment Conclusion
Metric

23. Success Metrics
The benchmarks of success are the followings:
30%
30%
25%
20%
Percentage 15% 10% 10%
10%
5%
0%
Garbage in Recycling Recycling Items in Recycling Items in
Compartment Incorrect Recycling Garbage
Compartment
Success
Background Programs Experiment Conclusion
Metric

24. Conclusion
People are Irrational
• No Incentive
• Confusion
• No loss
Three Programs
Reduction in Choices
Posters
Penalty System
Experiment
• Posters
• Paradox of Choice
Success
Background Programs Experiment Conclusion
Metric

25. The End
Thank you for listening!
Success
Background Programs Experiment Conclusion
Metric

26. Q&A
Success
Background Programs Experiment Conclusion
Metric

27. Appendix
• http://www.recycling-guide.org.uk/facts.html
• http://www.environment-green.com/

28. Problem
“Approximately 60% of our rubbish thrown away
today could be recycled. “
“The unreleased energy contained in the average
dustbin each year could power a television for
5,000 hours.”
“A survey was done and 9 out of 10 people
surveyed said they would recycle more if it was
easier.”
Success
Background Programs Experiment Conclusion
Metric