Posted Content•
Nudge and the Manipulation of Choice. A Framework for the Responsible Use of Nudge Approach to Behaviour Change in Public Policy
TL;DR: This paper argued that the anti-nudge position is not a literal non-starter due to the responsibilities that accrue on policy-makers by the intentional intervention in citizens' life, how nudging is not essentially liberty preserving and why the approach is not necessarily acceptable even if satisfying Rawls' publicity principle.
Abstract: In Nudge (2008) Richard Thaler and Cass Sunstein suggested that public policy-makers arrange decision-making contexts in ways to promote behaviour change in the interest of individual citizens as well as that of society. However, in the public sphere and Academia alike widespread discussions have appeared concerning the public acceptability of nudge based behavioural policy. Thaler and Sunstein’s own position is that the anti-nudge position is a literal non-starter, because citizens are always influenced by the decision making context anyway, and nudging is liberty preserving and acceptable if guided by Libertarian Paternalism and Rawls’ publicity principle. A persistent and central tenet in the criticism disputing the acceptability of the approach is that nudging works by manipulating citizens’ choices. In this paper, we argue that both lines of argumentation are seriously flawed. We show how the anti-nudge position is not a literal non-starter due to the responsibilities that accrue on policy-makers by the intentional intervention in citizens’ life, how nudging is not essentially liberty preserving and why the approach is not necessarily acceptable even if satisfying Rawls’ publicity principle. We then use the psychological dual process theory underlying the approach as well as an epistemic transparency criterion identified by Thaler and Sunstein themselves to show that nudging is not necessarily about “manipulation”, nor necessarily about influencing “choice”. The result is a framework identifying four types of nudges that may be used to provide a central component for more nuanced normative considerations as well as a basis for policy recommendations.
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TL;DR: In this paper, the authors explore worker experiences within the on-demand economy and argue that Uber's digitally and algorithmically mediated system of flexible employment builds new forms of surveillance and control into the experience of using the system, resulting in asymmetries around information and power for workers.
Abstract: This empirical study explores labor in the on-demand economy using the rideshare service Uber as a case study. By conducting sustained monitoring of online driver forums and interviewing Uber drivers, we explore worker experiences within the on-demand economy. We argue that Uber’s digitally and algorithmically mediated system of flexible employment builds new forms of surveillance and control into the experience of using the system, which result in asymmetries around information and power for workers. In Uber’s system, algorithms, CSRs, passengers, semiautomated performance evaluations, and the rating system all act as a combined substitute for direct managerial control over drivers, but distributed responsibility for remote worker management also exacerbates power asymmetries between Uber and its drivers. Our study of the Uber driver experience points to the need for greater attention to the role of platform disintermediation in shaping power relations and communications between employers and workers.
597 citations
TL;DR: It is identified that manipulation of food product order or proximity can influence food choice and there is a need for high-quality studies that quantify the magnitude of positional effects on food choice in conjunction with measuring the impact on food intake, particularly in the longer term.
Abstract: Nudging or 'choice architecture' refers to strategic changes in the environment that are anticipated to alter people's behaviour in a predictable way, without forbidding any options or significantly changing their economic incentives. Nudging strategies may be used to promote healthy eating behaviour. However, to date, the scientific evidence has not been systematically reviewed to enable practitioners and policymakers to implement, or argue for the implementation of, specific measures to support nudging strategies. This systematic review investigated the effect of positional changes of food placement on food choice. In total, seven scientific databases were searched using relevant keywords to identify interventions that manipulated food position (proximity or order) to generate a change in food selection, sales or consumption, among normal-weight or overweight individuals across any age group. From 2576 identified articles, fifteen articles comprising eighteen studies met our inclusion criteria. This review has identified that manipulation of food product order or proximity can influence food choice. Such approaches offer promise in terms of impacting on consumer behaviour. However, there is a need for high-quality studies that quantify the magnitude of positional effects on food choice in conjunction with measuring the impact on food intake, particularly in the longer term. Future studies should use outcome measures such as change in grams of food consumed or energy intake to quantify the impact on dietary intake and potential impacts on nutrition-related health. Research is also needed to evaluate potential compensatory behaviours secondary to such interventions.
307 citations
02 May 2019
TL;DR: A systematic review of the use of nudging in HCI research finds 23 distinct mechanisms and presents these as a framework for technology-mediated nudging, and discusses the factors shaping nudges' effectiveness and their ethical implications.
Abstract: 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.
204 citations
TL;DR: Suggestions for design principles are made and the potential and possible limits of ‘diversity sensitive design’ are explored, to break potential ‘filter bubbles’ rather than create them.
Abstract: Personalized recommendations in search engines, social media and also in more traditional media increasingly raise concerns over potentially negative consequences for diversity and the quality of public discourse. The algorithmic filtering and adaption of online content to personal preferences and interests is often associated with a decrease in the diversity of information to which users are exposed. Notwithstanding the question of whether these claims are correct or not, this article discusses whether and how recommendations can also be designed to stimulate more diverse exposure to information and to break potential ‘filter bubbles’ rather than create them. Combining insights from democratic theory, computer science and law, the article makes suggestions for design principles and explores the potential and possible limits of ‘diversity sensitive design’.
190 citations
TL;DR: This is the first review to synthesize nudging interventions, finding minimal uptake of nudging in the academic literature, and mixed effectiveness of nudges for influencing healthier food and beverage choices.
183 citations
References
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TL;DR: The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways.
Abstract: The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways. Reversals of preference are demonstrated in choices regarding monetary outcomes, both hypothetical and real, and in questions pertaining to the loss of human lives. The effects of frames on preferences are compared to the effects of perspectives on perceptual appearance. The dependence of preferences on the formulation of decision problems is a significant concern for the theory of rational choice.
15,513 citations
Posted Content•
TL;DR: Prospect theory as mentioned in this paper is an alternative to the classical utility theory of choice, and has been used to explain many complex, real-world puzzles, such as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days.
Abstract: This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making.
7,802 citations
Book•
08 Apr 2008TL;DR: In Nudge as discussed by the authors, Thaler and Sunstein argue that human beings are susceptible to various biases that can lead us to blunder and make bad decisions involving education, personal finance, health care, mortgages and credit cards, the family, and even the planet itself.
Abstract: A groundbreaking discussion of how we can apply the new science of choice architecture to nudge people toward decisions that will improve their lives by making them healthier, wealthier, and more free Every day, we make decisions on topics ranging from personal investments to schools for our children to the meals we eat to the causes we champion. Unfortunately, we often choose poorly. Nobel laureate Richard Thaler and legal scholar and bestselling author Cass Sunstein explain in this important exploration of choice architecture that, being human, we all are susceptible to various biases that can lead us to blunder. Our mistakes make us poorer and less healthy; we often make bad decisions involving education, personal finance, health care, mortgages and credit cards, the family, and even the planet itself. In Nudge, Thaler and Sunstein invite us to enter an alternative world, one that takes our humanness as a given. They show that by knowing how people think, we can design choice environments that make it easier for people to choose what is best for themselves, their families, and their society. Using colorful examples from the most important aspects of life, Thaler and Sunstein demonstrate how thoughtful "choice architecture" can be established to nudge us in beneficial directions without restricting freedom of choice. Nudge offers a unique new take-from neither the left nor the right-on many hot-button issues, for individuals and governments alike. This is one of the most engaging and provocative books to come along in many years.
7,772 citations
TL;DR: It’s time to get used to the idea that there is no such thing as a “right answer” to everything.
Abstract: A new model of consumer behavior is developed using a hybrid of cognitive psychology and microeconomics. The development of the model starts with the mental coding of combinations of gains and losses using the prospect theory value function. Then the evaluation of purchases is modeled using the new concept of “transaction utility.” The household budgeting process is also incorporated to complete the characterization of mental accounting. Several implications to marketing, particularly in the area of pricing, are developed.
This article was originally published in Marketing Science, Volume 4, Issue 3, pages 199--214, in 1985.
4,847 citations
TL;DR: Mental accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities as discussed by the authors, where outcomes are perceived and experienced, and how decisions are made and subsequently evaluated.
Abstract: Mental accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities Making use of research on this topic over the past decade, this paper summarizes the current state of our knowledge about how people engage in mental accounting activities Three components of mental accounting receive the most attention This first captures how outcomes are perceived and experienced, and how decisions are made and subsequently evaluated The accounting system provides the inputs to be both ex ante and ex post cost–benefit analyses A second component of mental accounting involves the assignment of activities to specific accounts Both the sources and uses of funds are labeled in real as well as in mental accounting systems Expenditures are grouped into categories (housing, food, etc) and spending is sometimes constrained by implicit or explicit budgets The third component of mental accounting concerns the frequency with which accounts are evaluated and ‘choice bracketing’ Accounts can be balanced daily, weekly, yearly, and so on, and can be defined narrowly or broadly Each of the components of mental accounting violates the economic principle of fungibility As a result, mental accounting influences choice, that is, it matters Copyright © 1999 John Wiley & Sons, Ltd
2,943 citations