Improving public policy through behavioral economics


Podcast Interview with Andy Feldman (Play in new window): “How can tools from the behavioral sciences, such as behavioral economics, improve the design and implementation of public policies? We examine that question with a leading economist, Raj Chetty of Harvard University. In his recent keynote speech at the American Economic Association meeting, he argued that insights from the behavioral sciences can expand the scope of tools that are available to policymakers — insights such as the importance of defaults, salience and loss aversion. Professor Chetty has been widely recognized for his research that combines empirical evidence and economic theory... (More >)

Encyclopedia of Social Network Analysis and Mining


“The Encyclopedia of Social Network Analysis and Mining (ESNAM) is the first major reference work to integrate fundamental concepts and research directions in the areas of social networks and applications to data mining. While ESNAM reflects the state-of-the-art in social network research, the field had its start in the 1930s when fundamental issues in social network research were broadly defined. These communities were limited to relatively small numbers of nodes (actors) and links. More recently the advent of electronic communication, and in particular on-line communities, have created social networks of hitherto unimaginable sizes. People around the world are directly... (More >)

The Power of Heuristics


ideas42: “People are presented with many choices throughout their day, from what to have for lunch to where to go on vacation to how much money to save for emergencies. In many situations, this ability to choose enhances our lives. However, having too many choices can sometimes feel like a burden, especially if the choices are complex or the decisions we’re making are important. In these instances, we often make poor decisions, or sometimes even fail to choose at all. This can create real problems, for example when people fail to save enough for retirement or don’t make the... (More >)

Nudge Concept App Hopes To Point Pre-Diabetics Toward A Healthier Lifestyle


Addy Dugdale at FastCompany: “A new concept app from the London office of design and innovation consultancy Smart Design aims to improve the health of a large portion of the world’s population, a segment for whom weight loss can be a matter of life and death: diabetics. Nudge is a concept app aimed at pre-diabetics—people with a high risk of developing type 2 diabetes—to change their eating habits. Described as a “personal nutritionist disguised as a shopping assistant,” the app keeps track of a user’s weekly grocery shopping using a phone’s camera to scan products on store shelves. The... (More >)

The Trouble With Disclosure: It Doesn’t Work


Jesse Eisinger at ProPublica: “Louis Brandeis was wrong. The lawyer and Supreme Court justice famously declared that sunlight is the best disinfectant, and we have unquestioningly embraced that advice ever since. Over the last century, disclosure and transparency have become our regulatory crutch, the answer to every vexing problem. We require corporations and government to release reams of information on food, medicine, household products, consumer financial tools, campaign finance and crime statistics. We have a booming “report card” industry for a range of services, including hospitals, public schools and restaurants. All this sunlight is blinding. As new scholarship is... (More >)

Nudging and Choice Architecture: Ethical Considerations


New paper by Cass Sunstein at Yale Journal on Regulation (via SSRN): “Is nudging unethical? Is choice architecture a problem for a free society? This essay defends seven propositions: (1) It is pointless to object to choice architecture or nudging as such. Choice architecture cannot be avoided. Nature itself nudges; so does the weather; so do customs and traditions; so do spontaneous orders and invisible hands. The private sector inevitably nudges, as does the government. It is reasonable to worry about nudges by government and to object to particular nudges, but not to nudging in general. (2) In this... (More >)

Helping the Poor in Education: The Power of a Simple Nudge


Susan Dynarski in The New York Times: “There are enormous inequalities in education in the United States. A child born into a poor family has only a 9 percent chance of getting a college degree, but the odds are 54 percent for a child in a high-income family. These gaps open early, with poor children less prepared than their kindergarten classmates. How can we close these gaps?…. Yet as these debates rage, researchers have been quietly finding small, effective ways to improve education. They have identified behavioral “nudges” that prod students and their families to take small steps that... (More >)

Governing the Embedded State: The Organizational Dimension of Governance


Book by Bengt Jacobsson, Jon Pierre, and Göran Sundström: “Governing the Embedded State integrates governance theory with organization theory and examines how states address social complexity and international embeddedness. Drawing upon extensive empirical research on the Swedish government system, this volume describes a strategy of governance based in a metagovernance model of steering by designing institutional structures. This strategy is supplemented by micro-steering of administrative structures within the path dependencies put in place through metagovernance. Both of these strategies of steering rely on subtle methods of providing political guidance to the public service where norms of loyalty to the... (More >)

People around you control your mind: The latest evidence


Jeff Guo in the Washington Post: “…That’s the power of peer pressure.In a recent working paper, Pedro Gardete looked at 65,525 transactions across 1,966 flights and more than 257,000 passengers. He parsed the data into thousands of mini-experiments such as this: If someone beside you ordered a snack or a film, Gardete was able to see whether later you did, too. In this natural experiment, the person sitting directly in front of you was the control subject. Purchases were made on a touchscreen; that person wouldn’t have been able to see anything. If you bought something, and the person... (More >)

Just say no to digital hoarding


Dominic Basulto at the Washington Post: “We have become a nation of digital hoarders. We save everything, even stuff that we know, deep down, we’ll never need or be able to find. We save every e-mail, every photo, every file, every text message and every video clip. If we don’t have enough space on our mobile devices, we move it to a different storage device, maybe even a hard drive or a flash drive. Or, better yet, we just move it to “the cloud.”…. If this were simply a result of the exponential growth of information — the “information... (More >)