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

This paper is based on the premises that the purpose of engineering education is to graduate engineers who can design, and that design thinking is complex. The paper begins by briefly reviewing the history and role of design in the engineering curriculum. Several dimensions of design thinking are then detailed, explaining why design is hard to learn and harder still to teach, and outlining the research available on how well design thinking skills are learned. The currently most-favored pedagogical model for teaching design, project-based learning (PBL), is explored next, along with available assessment data on its success. Two contexts for PBL are emphasized: first-year cornerstone courses and globally dispersed PBL courses. Finally, the paper lists some of the open research questions that must be answered to identify the best pedagogical practices of improving design learning, after which it closes by making recommendations for research aimed at enhancing design learning.

Engineering Design Thinking, Teaching, and Learning

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Engineering design thinking, teaching, and learning

The research reported here examines the relationship between risk perceptions and willingness to address climate change. The data are a national sample of 1225 mail surveys that include measures of risk perceptions and knowledge tied to climate change, support for voluntary and government actions to address the problem, general environmental beliefs, and demographic variables. Risk perceptions matter in predicting behavioral intentions. Risk perceptions are not a surrogate for general environmental beliefs, but have their own power to account for behavioral intentions. There are four secondary conclusions. First, behavioral intentions regarding climate change are complex and intriguing. People are neither “nonbelievers” who will take no initiatives themselves and oppose all government efforts, nor are they “believers” who promise both to make personal efforts and to vote for every government proposal that promises to address climate change. Second, there are separate demographic sources for voluntary actions compared with voting intentions. Third, recognizing the causes of global warming is a powerful predictor of behavioral intentions independent from believing that climate change will happen and have bad consequences. Finally, the success of the risk perception variables to account for behavioral intentions should encourage greater attention to risk perceptions as independent variables. Risk perceptions and knowledge, however, share the stage with general environmental beliefs and demographic characteristics. Although related, risk perceptions, knowledge, and general environmental beliefs are somewhat independent predictors of behavioral intentions.

Risk Perceptions, General Environmental Beliefs, and Willingness to Address Climate Change

Mental models are personal, internal representations of external reality that people use to interact with the world around them. They are constructed by individuals based on their unique life experiences, perceptions, and understandings of the world. Mental models are used to reason and make decisions and can be the basis of individual behaviors. They provide the mechanism through which new information is filtered and stored. Recognizing and dealing with the plurality of stakeholder's perceptions, values, and goals is currently considered a key aspect of effective natural resource management (NRM) practice. Therefore, gaining a better understanding of how mental models internally represent complex, dynamic systems and how these representations change over time will allow us to develop mechanisms to enhance effective management and use of natural resources. Realizing this potential, however, relies on developing and testing adequate tools and techniques to elicit these internal representations of the world effectively. This paper provides an interdisciplinary synthesis of the literature that has contributed to the theoretical development and practical application of the mental model construct. It explores the utility and applicability of the construct in the context of NRM and includes a review of elicitation techniques used within the field. The major theoretical and practical challenges that arise in drawing on the construct to provide a cognitive dimension to NRM are also addressed.

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Mental models: an interdisciplinary synthesis of theory and methods

Although “mental models” are of central importance to system dynamics research and practice, the field has yet to develop an unambiguous and agreed upon definition of them. To begin to address this problem, existing definitions and descriptions of mental models in system dynamics and several literatures related to cognitive science were reviewed and compared. Available definitions were found to be overly brief, general, and vague, and different authors were found to markedly disagree on the basic characteristics of mental models. Based on this review, we concluded that in order to reduce the amount of confusion in the literature, the mental models concept should be “unbundled” and the term “mental models” should be used more narrowly. To initiate a dialogue through which the system dynamics community might achieve a shared understanding of mental models, we propose a new definition of “mental models of dynamic systems” accompanied by an extended annotation that explains the definitional choices made and suggests terms for other cognitive structures left undefined by narrowing the mental model concept. Suggestions for future research that could improve the field's ability to further define mental models are discussed. © 1998 John Wiley & Sons, Ltd.

Mental models concepts for system dynamics research

This article revisits a conceptual definition of “mental models of dynamic systems” proposed for use in system dynamics research by Doyle and Ford and commented on by Lane. Lane's proposed amendments to the definition are discussed in turn, with particular attention to the history and appropriate use of the term “cognitive map.” A revised definition informed by Lane's commentary is offered. Copyright © 1999 John Wiley & Sons, Ltd.

Mental models concepts revisited: some clarifications and a reply to Lane

This article describes how established research methods in cognitive psychology can be applied to answer questions about the ability of systems thinking interventions to improve the nature and quality of thought about complex systems. The need for and advantages of controlled experimental research on the effects of interventions on mental models and cognitive processes, as well as the limitations of current assessment practices, are discussed. An agenda for collaborative research between cognitive psychologists and researchers interested in dynamic systems, covering the areas of memory, analogical transfer, mental models, decision processes, human–computer interaction, and expertise, is outlined in detail. The article concludes with a discussion of the difficulties and long-term advantages of conducting the described research. © 1997 John Wiley & Sons, Ltd.

The cognitive psychology of systems thinking

As scientists who are interested in studying people's mental models, we must develop appropriate experimental methods and discard our hopes of finding neat, elegant mental models, but instead learn to understand the messy, sloppy, incomplete, and indistinct structures that people actually have. Donald A. Norman [1983, p. 14]

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Measuring Change in Mental Models of Complex Dynamic Systems

The authors outline how potentially coherent, consistent economic values can be determined by use of contingent valuation measurement (CVM). They use as an example three different CV studies to estimate nonuse values for groundwater. The authors also point out that rapidly changing political preferences can complicate the issues. They feel that the appropriate goal for CVM is to attempt to provide crystallized values for public decisionmaking.

James K. Doyle

Papers

Mental models concepts for system dynamics research

Mental models concepts revisited: some clarifications and a reply to Lane

The cognitive psychology of systems thinking

Measuring Change in Mental Models of Complex Dynamic Systems

Can contingent valuation measure nonuse values