Motivation and emotion/Book/2024/Nudge theory

Nudge theory:
What is nudge theory and how is it used to motivate behaviour change?

Multimedia presentation (3 min)

Overview

Case study: The fly in the urinal (Figure 1) Simple yet highly effective nudge in men's toilets 1999 Amsterdam airport Talk about design and implementation, results, implications in other settings (Marcano‐Olivier et al., 2019)

Nudge theory, a concept derived from behavioural economics , proposes to change small, subtle aspects in an environment to influence the behaviour or decision-making of groups or individuals, often leading to more desirable outcomes without limiting their freedom of choice. The theory was popularised by Richard Thaler and Cass Sunstein in their 2008 book Nudge: Improving Decisions About Health, Wealth, and Happiness

• Addressing cognitive bias
• Traditional methods for influencing behaviour
• Effective and scalable solutions/wide ranging applications
• Consideration regarding ethics

In this page, we will explore what Nudge Theory is, how it works, and how it is used to motivate behaviour change in various contexts - including human resources, healthcare and beyond.

Figure 1. A fly or a nudge?

• Describe outcomes of the case study, including implications in other settings or environments

Focus questions: What is Nudge Theory, and how does it differ from traditional methods of influencing behavior? Which psychological principles underpin Nudge Theory? In what ways have Nudge Theory been applied, and what are some examples of success? What criticisms have been leveled against Nudge Theory? What are ethical considerations surrounding the use of nudges?

Fundamentals of Nudge Theory

Origins and development

• Origin from Thaler and Sunstein in the 2008 book
• Influence from other psychology theories (cognitive, heuristics and biases)
• Behavioural economics challenging the view that people always make rational decisions (Gradinaru, 2014)
• Global influence

Key concepts

• Psychological principles including libertarian paternalism (Lin et al., 2017)
• Cognitive biases - such as leveraging natural human tendencies
• Techniques such as default settings, strategic placement, social proof (Kuyer & Gordijn, 2023)

Applications of Nudge Theory

Healthy eating for children

Case Study: Encouraging Healthy Eating in a School Cafeteria Talk about strategies (food placement, descriptive labels, smaller portions of unhealthy foods) Talk about outcomes (Marcano‐Olivier et al., 2019)

Environmental stability

• Comparison of energy bills
• Promoting energy efficiency
• Reducing water usage

(Wee et al., 2021)

Financial decision-making

• Improved retirement savings
• Reminders for paying bills on time
• Reducing financial overwhelm by breaking information into understandable chunks

Human resources

Encouraging positive workplace behaviours Nudges can be particularly effective in encouraging behaviours which overall contribute to a more positive workplace culture. For example, openly discussing mental health can encourage others to feel safe to discuss their health or concerns. Similarly, using social proof - such as statistics on how many people participate in employee assistance programs - can nudge others to access similar supports.

Case study: Responding to employee complaints with Nudge Theory Scenario: A organisation is facing high employee turnover. Following an analysis of exit interviews, many employees felt undervalued and unrecognized for their contributions. To address this, the HR department proposes to implement a series of nudges.

Which proposed change could be considered a nudge? Personalized Recognition: Automatically generating personalized thank-you emails from managers when employees reach milestones or complete projects. Financial incentives: Offering a cash bonus to employees who participate in a wellness program or complete certain tasks.

Successful implementation of nudges can see a reduction in turnover and an improvement in overall employee satisfaction.

Challenges and ethical considerations

Criticisms of Nudge Theory

• How effective is it actually?
• Are nudges short-lived? What do some differing studies say? (Lin et al., 2017)
• Nudge overuse/fatigue

Manipulation concerns

• Exploitation as suggested by Hausman & Welch (2010)
• Autonomy and Freedom of Choice
• Ethical dilemmas

Case studies

Organ donation

• (Johnson & Goldstein, 2003)

Countries have seen an increase in organ donation by moving to an opt-out system

• Implication of this change - improvement in outcomes for those requiring donations

Healthy eating initiatives

• (Laiou et al., 2021)
• Supermarkets and cafeterias implement nudges by placing healthier food options at eye level.
• Long term outcome is an increase in consumption of healthier foods and reduction in calorie intakes.
• Talk about strategic placement and portion control being popular.

Conclusion

• Summarise nudge theory
• Consider effectiveness across domains - does this do what we intended on doing?
• Discuss misuse of nudges and ways to consider addressing or minimising these
• Future directions

Check your knowledge: Provide responses from within the chapter to the below: What is Nudge Theory, and how does it differ from traditional methods of influencing behaviour? Answer: Which psychological principles underpin Nudge Theory? Answer: In what ways have Nudge Theory been applied, and what are some examples of success? Answer: What criticisms have been leveled against Nudge Theory? Answer: What are ethical considerations surrounding the use of nudges? Answer:

See also

• Wikipedia - Nudge_theory (Wikipedia)
• Wikiversity - Behavioural Economics and Motivation (Book chapter, 2022)
• Wikiversity: Nudge theory and sedentary behaviour: How can nudge theory be used to reduce sedentary behaviour? (Book chapter, 2023)

References

Congiu, L., & Moscati, I. (2021). A review of nudges: Definitions, justifications, effectiveness. Journal of Economic Surveys, 36(1). https://doi.org/10.1111/joes.12453

Gradinaru, A. (2014). The Contribution of Behavioral Economics in Explaining the Decisional Process. Procedia Economics and Finance, 16, 417–426. https://doi.org/10.1016/s2212-5671(14)00821-1

Hausman, D. M., & Welch, B. (2010). Debate: To Nudge or Not to Nudge. Journal of Political Philosophy, 18(1), 123–136.

Johnson, E. J., & Goldstein, D. G. (2003, November 21). Do Defaults Save Lives? Papers.ssrn.com. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1324774

Kuyer, P., & Gordijn, B. (2023). Nudge in perspective: A systematic literature review on the ethical issues with nudging. Rationality and Society, 35(2), 104346312311550. https://doi.org/10.1177/10434631231155005

Laiou, E., Rapti, I., Schwarzer, R., Fleig, L., Cianferotti, L., Ngo, J., Rizos, E. C., Wetle, T. F., Kahlmeier, S., Vigilanza, A., Tsilidis, K. K., Trichopoulou, A., Serra-Majem, L., Brandi, M. L., & Ntzani, E. E. (2021). Review: Nudge interventions to promote healthy diets and physical activity. Food Policy, 102, 102103. https://doi.org/10.1016/j.foodpol.2021.102103

Lin, Y., Osman, M., & Ashcroft, R. (2017). Nudge: Concept, Effectiveness, and Ethics. Basic and Applied Social Psychology, 39(6), 293–306. https://doi.org/10.1080/01973533.2017.1356304

Marcano‐Olivier, M. I., Horne, P. J., Viktor, S., & Erjavec, M. (2019). Using Nudges to Promote Healthy Food Choices in the School Dining Room: A Systematic Review of Previous Investigations. Journal of School Health, 90(2), 143–157. https://doi.org/10.1111/josh.12861

Wee, S.-C., Choong, W.-W., & Low, S.-T. (2021). Can “Nudging” Play a Role to Promote Pro-Environmental Behaviour?. Environmental Challenges, 5(1), 100364. https://doi.org/10.1016/j.envc.2021.100364

External Links

• Nudge theory: what 15 years of research tells us about its promises and politics (The Conversation)
• What is Nudge Theory | Explained in 2 min (Youtube)
• Nudge Theory - Dr Amit K Lal (Youtube)