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

The Social Psychology of Groups. J. W Thibaut & H. H. Kelley. New York: alley, 1959. The team of Thibaut and Kelley goes back to 1946 when, after serving in different units of the armed services psychology program, the authors joined the Research Center for Group Dynamics, first at M.LT and then at the University of Michigan. Their continued association eventuated in appointments as fellows at the Center for Advanced Study in the Behavioral Sciences, 19561957. It is during these years that their collaboration resulted in the publication of The Social Psychology of Groups. The book was designed to "bring order and coherence to present-day research in interpersonal relations and group functioning." To accomplish this aim, the authors introduced, defined, and illustrated basic concepts in an effort to explain the simplest of social phenomena, the two-person relationship. These basic principles and concepts were then employed to illuminate larger problems and more complex social relationships and to examine the significance of such concepts as roles, norm, power, group cohesiveness, and status. The lasting legacy of this book is derived from the fact that the concepts and principles discussed therein serve as a foundation for one of the dominant conceptual frameworks in the field of family studies today-the social exchange framework. Specifically, much of our contemporary thinking about the process of interpersonal attraction and about how individuals evaluate their close relationships has been influenced by the theory and concepts introduced in The Social Psychology of Groups. Today, as a result of Thibaut and Kelley, we think of interpersonal attraction as resulting from the unique valence of driving and restraining forces, rewards and costs, subjectively thought to be available from a specific relationship and its competing alternatives. We understand, as well, that relationships are evaluated through complex and subjectively based comparative processes. As a result, when we think about assessing the degree to which individuals are satisfied with their relationships, we take into consideration the fact that individuals differ in terms of the importance they attribute to different aspects of a relationship (e.g., financial security, sexual fulfillment, companionship). We also take into consideration the fact that individuals differ in terms of the levels of rewards and costs that they believe are realistically obtainable and deserved from a relationship. In addition, as a result of Thibaut and Kelley's theoretical focus on the concept of dependence and the interrelationship between attraction and dependence, there has evolved within the field of family studies a deeper appreciation for the complexities and variability found within relationships. Individuals are dependent on their relationships, according to Thibaut and Kelley, when the outcomes derived from the existing relationship exceed those perceived to be available in competing alternatives. Individuals who are highly dependent on their relationships are less likely to act to end their relationships. This dependence and the stability it engenders may or may not be voluntary, depending on the degree to which individuals are attracted to and satisfied with their relationships. When individuals are both attracted to and dependent on their relationships, they can be thought of as voluntarily participating in their relationship. That is, they are likely to commit themselves to the partner and relationship and actively work for its continuance. Thibaut and Kelley termed those relationships characterized by low levels of satisfaction and high levels of dependence "nonvoluntary relationships. …

The Social Psychology of Groups

Much research in the last two decades has demonstrated that human responses deviate from the performance deemed normative according to various models of decision making and rational judgment (e.g., the basic axioms of utility theory). This gap between the normative and the descriptive can be interpreted as indicating systematic irrationalities in human cognition. However, four alternative interpretations preserve the assumption that human behavior and cognition is largely rational. These posit that the gap is due to (1) performance errors, (2) computational limitations, (3) the wrong norm being applied by the experimenter, and (4) a different construal of the task by the subject. In the debates about the viability of these alternative explanations, attention has been focused too narrowly on the model response. In a series of experiments involving most of the classic tasks in the heuristics and biases literature, we have examined the implications of individual differences in performance for each of the four explanations of the normative/descriptive gap. Performance errors are a minor factor in the gap; computational limitations underlie non-normative responding on several tasks, particularly those that involve some type of cognitive decontextualization. Unexpected patterns of covariance can suggest when the wrong norm is being applied to a task or when an alternative construal of the task should be considered appropriate.

Individual differences in reasoning: Implications for the rationality debate?-Open Peer Commentary-Differences, games, and pluralism

Ten years ago, Thaler and Sunstein introduced the notion of nudging to talk about how subtle changes in the 'choice architecture' can alter people's behaviors in predictable ways. This idea was eagerly adopted in HCI and applied in multiple contexts, including health, sustainability and privacy. Despite this, we still lack an understanding of how to design effective technology-mediated nudges. In this paper we present a systematic review of the use of nudging in HCI research with the goal of laying out the design space of technology-mediated nudging - the why (i.e., which cognitive biases do nudges combat) and the how (i.e., what exact mechanisms do nudges employ to incur behavior change). All in all, we found 23 distinct mechanisms of nudging, grouped in 6 categories, and leveraging 15 different cognitive biases. We present these as a framework for technology-mediated nudging, and discuss the factors shaping nudges' effectiveness and their ethical implications.

https://dl.acm.org/doi/pdf/10.1145/3290605.3300733

23 Ways to Nudge: A Review of Technology-Mediated Nudging in Human-Computer Interaction

Individuals make increasingly more decisions on screens, such as those on websites or mobile apps. However, the nature of screens and the vast amount of information available online make individuals particularly prone to deficient decisions. Digital nudging is an approach based on insights from behavioral economics that applies user interface (UI) design elements to affect the choices of users in digital environments. UI design elements include graphic design, specific content, wording or small features. To date, little is known about the psychological mechanisms that underlie digital nudging. To address this research gap, we conducted a systematic literature review and provide a comprehensive overview of relevant psychological effects and exemplary nudges in the physical and digital sphere. These insights serve as a valuable basis for researchers and practitioners that aim to study or design information systems and interventions that assist user decision making on screens.

/pdf/digital-nudging-altering-user-behavior-in-digital-1zlkuduran.pdf

Digital Nudging: Altering User Behavior in Digital Environments

People make security choices on a daily basis without fully considering the security implications of those choices. In this paper we present a prototype application which promotes the choice of secure wireless network options, specifically when users are unfamiliar with the wireless networks available. The app was developed based on behavioural theory, choice architecture and good practices informed by HCI design. The app includes several options to 'nudge' users towards selecting more secure public wireless networks. This paper outlines the development and the results of an evaluation of some of the potential app nudges (specifically, presentation order and colour coding). Colour coding was found to be a powerful influence, less so with the order in which we listed the Wi-Fi networks, although the colour x order combination was most effective. The paper contributes to the body of evidence on the effectiveness of cyber-security interventions to empower the user to make more informed security decisions.

Nudging towards security: developing an application for wireless network selection for android phones

Despite their best intentions, people struggle with the realities of privacy protection and will often sacrifice privacy for convenience in their online activities. Individuals show systematic, personality dependent differences in their privacy decision making, which makes it interesting for those who seek to design ‘nudges’ designed to manipulate privacy behaviors. We explore such effects in a cookie decision task. Two hundred and ninety participants were given an incidental website review task that masked the true aim of the study. At the task outset, they were asked whether they wanted to accept a cookie in a message that either contained a social framing ’nudge’ (they were told that either a majority or a minority of users like themselves had accepted the cookie) or contained no information about social norms (control). At the end of the task, participants were asked to complete a range of personality assessments (impulsivity, risk-taking, willingness to self-disclose and sociability). We found social framing to be an effective behavioral nudge, reducing cookie acceptance in the minority social norm condition. Further, we found personality effects such that those scoring highly on risk-taking and impulsivity were significantly more likely to accept the cookie. Finally, we found that the application of a social nudge could attenuate the personality effects of impulsivity and risk-taking. We explore the implications for those working in the privacy-by-design space.

/pdf/personality-and-social-framing-in-privacy-decision-making-a-3ut2l9swm1.pdf

Personality and Social Framing in Privacy Decision-Making: A Study on Cookie Acceptance.

In this work we address the main issues of IT consumerisation that are related to security risks, and propose a ‘soft’ mitigation strategy for user actions based on nudging, widely applied to health and social behaviour influence. In particular, we propose a complementary, less strict, more flexible Information Security policies, based on risk assessment of device vulnerabilities and threats to corporate data and devices, combined with a strategy of influencing security behaviour by nudging. We argue that nudging, by taking into account the context of the decision-making environment, and the fact that the employee may be in better position to make a more appropriate decision, may be more suitable than strict policies in situations of uncertainty of securityrelated decisions.

/pdf/consumerisation-of-it-mitigating-risky-user-actions-and-4txv484ne9.pdf

Consumerisation of IT: Mitigating risky user actions and improving productivity with nudging

The Information Security Decision Making Process is comprised of an extremely complex and dynamic set of sub-tasks, sub-goals and inter-disciplinary practices. In order to be effective and appropriate, this process must balance both the requirements of the stakeholder as well as the users within the system. Without careful consideration of users’ behaviours and preferences, interventions are often seen as obstacles towards productivity and subsequently circumvented or simply not adhered to. The approach detailed herein requires an intimate knowledge of both Information Security and Human Behaviour. An effective security policy must adequately protect a given set of assets (human and non-human) or systems as well as preserve maximal productivity. Companies rely on their Intellectual Property Rights which are often stored in a digital format. This presents a plethora of issues regarding security, access management and locality (whether on or off the premises). Furthermore, there is the added complexity of employees and how they operate within this environment (a subset of compliance, competence and policy). With the continued increase in consumerisation, more specifically the rise of Bring Your Own Device, there is a significant threat towards data security that persists outside of the typical working environment. This trend enables employees to access and transfer corporate assets remotely but in doing so creates a conflict over identity, ownership and data management. The governance of these activities creates an extremely complex problem space which requires the need to balance these requirements relying on an accurate assessment of risk, identification of security vulnerabilities and knowledge pertaining to the behaviour of employees. The risks to company assets can be estimated by the analysis of the following issues: • Threats to your assets. These are unwanted events that could cause the deliberate or accidental loss, damage or misuse of the assets. • Vulnerabilities. How susceptible your assets are to attack. • Impact. The magnitude of the potential loss or the seriousness of the event. The ability to quantify and accurately represent these variables is critical in developing, implementing and supporting a successful security policy. A methodological based approach

/pdf/aiding-information-security-decisions-with-human-factors-35fm9qisrg.pdf

Aiding information security decisions with human factors using quantitative and qualitative techniques

In this work we address the main issues of Information Technology (IT) consumerization that are related to security risks, and vulnerabilities of devices used within Bring Your Own Device (BYOD) strategy in particular. We propose a ‘soft’ mitigation strategy for user actions based on nudging, widely applied to health and social behavior influence. In particular, we propose a complementary, less strict, more flexible Information Security policies, based on risk assessment of device vulnerabilities and threats to corporate data and devices, combined with a strategy of influencing security behavior by nudging. We argue that nudging, by taking into account the context of the decision-making environment, and the fact that the employee may be in better position to make a more appropriate decision, may be more suitable than strict policies in situations of uncertainty of security-related decisions. Several examples of nudging are considered for different tested and potential scenarios in security context.

/pdf/addressing-consumerization-of-it-risks-with-nudging-3918zu9e8f.pdf

James Turland

Papers

Nudging towards security: developing an application for wireless network selection for android phones

Personality and Social Framing in Privacy Decision-Making: A Study on Cookie Acceptance.

Consumerisation of IT: Mitigating risky user actions and improving productivity with nudging

Aiding information security decisions with human factors using quantitative and qualitative techniques

Addressing consumerization of IT risks with nudging