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behavioral economics

What motivates charitable giving?

Abigail Dalton's picture

As behavioral scientists to the World Bank, we at the Mind, Behavior, and Development (eMBeD) Unit tend to see behavioral science everywhere. With the holiday season fast approaching, it’s no surprise that we can apply behavioral science to any number of seasonally appropriate channels, including charitable giving. Reciprocity, it turns out, affects us at every age, and can be a good lesson for charitable giving campaigns.

How behavioral science has helped me deal with development projects and my children

Anna Fruttero's picture
 
Children in kindergarten in rural Uzbekistan. © Matluba Mukhamedova/World Bank
Children in kindergarten in rural Uzbekistan. © Matluba Mukhamedova/World Bank

“Working on the World Development Report 2015 and subsequently in the eMBeD Unit mainstreaming the use of behavioral insights within World Bank’s projects, has also been very helpful when dealing with my kids”, I told a class of undergrads where I had been invited as a speaker. The first question I was asked in the open Q&A was whether I could elaborate on that statement. How had behavioral insights helped me with my kids? Students wanted to know more. The fact that college students picked up on this sentence out of an hour-long conversation on my experience with behavioral work at the World Bank struck me.

Define the problem in terms of a behavior. Ask how rather than why. Change the frame, the perspective of looking at a problem. Diagnose the constraints. Test and adapt your interventions. These are some of the messages we teach in our workshops on behavioral insights designed for our colleagues and counterparts in governments. They are simple, yet very powerful, and they have certainly helped me working on projects in a wide range of places such as Brazil, Ethiopia and the Maldives, but also, unexpectedly, in dealing with my children.

Weekly wire: The global forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.
 
McKinsey & Company
Productivity in the construction sector has stagnated for decades, with the average capital project reaching completion 20 months behind schedule and 80 percent over budget. Some overruns result from increased project complexity and scale, but another factor also looms large: all stakeholders in the capital-projects ecosystem—project owners, contractors, and subcontractors—have resisted adopting digital tools and platforms. These include advanced analytics, automation, robotics, 5-D building information modeling (BIM), and online document-management or data-collection systems. Meanwhile, companies in sectors ranging from government to manufacturing have significantly reduced costs and schedules by aggressively pursuing digital solutions.

Pollution kills 9 million people each year, new study finds
Washington Post

Dirty air in India and China. Tainted water in sub-Saharan Africa. Toxic mining and smelter operations in South America. Pollution around the globe now contributes to an estimated 9 million deaths  annually — or roughly one in six — according to an in-depth new study published Thursday in the Lancet. If accurate, that means pollution kills three times more people each year than HIV/AIDS, tuberculosis and malaria combined, with most of those deaths  in poor and developing countries.
 

“Nudge units” – where they came from and what they can do

Zeina Afif's picture

You could say that the first one began in 2009, when the US government recruited Cass Sunstein to head The Office of Information and Regulatory Affairs (OIRA) to streamline regulations. In 2010, the UK established the first Behavioural Insights Unit (BIT) on a trial basis, under the Cabinet Office. Other countries followed suit, including the US, Australia, Canada, Netherlands, and Germany. Shortly after, countries such as India, Indonesia, Peru, Singapore, and many others started exploring the application of behavioral insights to their policies and programs. International institutions such as the World Bank, UN agencies, OECD, and EU have also established behavioral insights units to support their programs. And just this month, the Sustainable Energy Authority of Ireland launched its own Behavioral Economics Unit.

A celebration of Richard Thaler’s Nobel Prize and a new field – Behavioral Development Economics

Karla Hoff's picture

Could a parent’s decision to vaccinate a child depend on a free bag of lentils?  The premise seems implausible:immunization can be a matter of life and death, and a bag of lentils is worth only a dollar.  Yet a randomized controlled trial in India showed that a gift to parents of a 1 kg bag of lentils and a set of plates can dramatically raise the percentage of children protected against major disease (Banerjee et al. 2010).  Providing a quality immunization camp alone increased the percentage of fully immunized children from 6% to 18%.  The addition of the lentil and plate ‘incentives’ raised the figure to a whopping 39%.  How can we explain the outsize effect of a gift of everyday household items?

Everyone misbehaves: Putting the 2017 Economics Nobel Prize to work for development

eMBeD Team's picture

Monday’s announcement of the 2017 Nobel Prize for economics, to Richard Thaler, for his groundbreaking work incorporating psychology into economic theory, was a victory not only for the University of Chicago Professor and co-author of Nudge: Improving Decisions about Health, Wealth, and Happiness, but for behaviorally-informed policy worldwide.

The Puzzle with LARCs

Berk Ozler's picture

Suppose that you’re at your doctor’s office, discussing an important health issue that may become a concern in the near future. There are multiple drugs available in the market that you can use to prevent unwanted outcomes. Some of them are so effective that there is practically no chance you will have a negative event if you start taking them. Effectiveness of the other options range from 94% to much lower, with the most commonly used drug failing about 10% of the time for the typical user. Somehow, you go home with the drug that has a one in 10 failure rate: worse, you’re not alone; most people end up in the same boat…

Keeping Up with Sunstein!

Zeina Afif's picture

As an enthusiast and practitioner of behavioral science, I try to stay current with the latest research and papers from the field. I follow the work of behavioral economics superstars such as Dan Ariely, Daniel Kahneman, Cass Sunstein, Richard Thaler, Robert Cialdini, and others. One thing, though, keeps challenging me. Cass Sunstein is a publishing machine! As soon as I finish reading one of his books or papers, three or four more pop up! 

For those not familiar with Sunstein, he is a law and behavioral economics professor at Harvard who co-authored with Richard Thaler the best seller, “Nudge: Improving Decisions About Health, Wealth, and Happiness”. Sunstein also served as the Administrator of the White House Office of Information and Regulatory Affairs, where he applied behavioral economics in the design and implementation of regulations.
 

Since the publication of ‘Nudge’, an increasing number of countries and government institutions have started applying insights from behavioral science in designing and implementing new policies and programs. The World Bank World Development Report 2015: Mind, Society, and Behavior outlined the ways behavioral science can complement policy makers’ toolbox and the European Commission and OECD published recent reports highlighting the latest developments.  The number of books, research papers and articles on the topic have doubled since the book was originally published.

Can behavioral change support water conservation? Examples from the US, Colombia and Costa Rica

Juan Jose Miranda's picture


This blog is part of the series "Small changes, big impacts: applying #behavioralscience into development".

While Latin America is rich in water, people’s ability to access safe, reliable water supply remains elusive in most countries. Worse, most countries and major cities in the region will face economic water scarcity in less than a decade. Strategies to manage water scarcity vary, from investing in water recycling facilities to changing consumer behavior.

The most common ways to change consumer behavior are to increase the price or conduct communication campaigns to encourage conservation. Neither solution, however, is guaranteed to succeed. In some cases, they even backfire. Increasing price, for example, can upset citizens who currently pay little for poor quality water. Likewise, if done poorly, communication campaigns can cause panic and increase consumption and water stockpiling, something Bogota faced in 1997 when a tunnel providing water to the city collapsed and caused water shortages.


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