In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

Thinking fast and slow.

NUDGE: IMPROVING DECISIONS ABOUT HEALTH, WEALTH, AND HAPPINESS by Richard H. Thaler and Cass R. Sunstein Penguin Books, 2009, 312 pp, ISBN 978-0-14-311526-7This book is best described formally as a general explanation of and advocacy for libertarian paternalism, a term coined by the authors in earlier publications. Informally, it is about how leaders, systems, organizations, and governments can nudge people to do the things the nudgers want and need done for the betterment of the nudgees, or of society. It is paternalism in the sense that "it is legitimate for choice architects to try to influence people's behavior in order to make their lives longer, healthier, and better", (p. 5) It is libertarian in that "people should be free to do what they like - and to opt out of undesirable arrangements if they want to do so", (p. 5) The built-in possibility of opting out or making a different choice preserves freedom of choice even though people's behavior has been influenced by the nature of the presentation of the information or by the structure of the decisionmaking system. I had never heard of libertarian paternalism before reading this book, and I now find it fascinating.Written for a general audience, this book contains mostly social and behavioral science theory and models, but there is considerable discussion of structure and process that has roots in mathematical and quantitative modeling. One of the main applications of this social system is economic choice in investing, selecting and purchasing products and services, systems of taxes, banking (mortgages, borrowing, savings), and retirement systems. Other quantitative social choice systems discussed include environmental effects, health care plans, gambling, and organ donations. Softer issues that are also subject to a nudge-based approach are marriage, education, eating, drinking, smoking, influence, spread of information, and politics. There is something in this book for everyone.The basis for this libertarian paternalism concept is in the social theory called "science of choice", the study of the design and implementation of influence systems on various kinds of people. The terms Econs and Humans, are used to refer to people with either considerable or little rational decision-making talent, respectively. The various libertarian paternalism concepts and systems presented are tested and compared in light of these two types of people. Two foundational issues that this book has in common with another book, Network of Echoes: Imitation, Innovation and Invisible Leaders, that was also reviewed for this issue of the Journal are that 1 ) there are two modes of thinking (or components of the brain) - an automatic (intuitive) process and a reflective (rational) process and 2) the need for conformity and the desire for imitation are powerful forces in human behavior. …

Nudge: Improving Decisions about Health, Wealth, and Happiness

Risk Communication: A Handbook for Communicating Environmental, Safety, and Health Risks

Since the 1990s, state governments in the United States have diversified policy instruments to encourage the electric power industry to deploy renewable sources for electricity generation. This study identifies the trends and variations in renewable energy (RE) policy governance among states and examines the effectiveness of policy instruments in the deployment of RE sources for electricity production. This study explores 18 state legislative, RE-related regulations, programs, or financial incentives existing between 2001 and 2010 in 48 states in the United States. Renewable energy policies were classified into three types of policy approaches: command-and-control, market-based, and information instruments. Results suggest that authoritative approaches are more likely to be effective in the governmental intervention toward a pre-existing market, and information instruments and citizen participation became important in the power industry in the 2000s. In addition, it gives us some evidence that federal assistance under the American Recovery and Reinvestment Act of 2009 influenced the overall growth of the renewable electricity industry, in addition to state government–led policy designs.

State Renewable Energy Governance: Policy Instruments, Markets, or Citizens

Government uses a wide variety of instruments to reach its policy goals, ranging from indirect methods, such as moral suasion and cash induce- ments, to more direct ones involving government provision of services. Although there has been a fair amount of writing on the nature and use of various policy instruments, there is very little work on either the meaning ascribed to these instruments by the decisionmakers who use them (or the experts who design them) or the processes by which some come to be favored over others. Characteristics of the political system, such as national policy style, the organizational setting of the decisionmaker, and the problem situation are all likely to have some influence over the choice of instruments. The relative impact of these variables, however, is likely to be mediated by subjective factors linked to cognition. Perceptions of the proper 'tool to do the job' intervenes between context and choice in a complex way. Effortsto account forvariation in instrument choice, then, must focus not only on macro level variables but on micro ones as well.

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Instruments of Government: Perceptions and Contexts

COVID-19 has spawned a surge in the number of public epidemic prevention policies. More important than active policy-making is how to increase citizens’ policy compliance willingness. Based on publ...

Two-Way Risk Communication, Public Value Consensus, and Citizens’ Policy Compliance Willingness About COVID-19: Multilevel Analysis Based on Nudge View

Bin Guan

Papers

Two-Way Risk Communication, Public Value Consensus, and Citizens’ Policy Compliance Willingness About COVID-19: Multilevel Analysis Based on Nudge View