- Foreword - Executive summary - Introduction - The dynamics of moral decision making - Integrity in the context of social interactions - Applying behavioural insights to integrity policies - References

The definitive introduction to the behavioral insights approach, which applies evidence about human behavior to practical problems. Our behavior is strongly influenced by factors that lie outside our conscious awareness, although we tend to underestimate the power of this “automatic” side of our behavior. As a result, governments make ineffective policies, businesses create bad products, and individuals make unrealistic plans. In contrast, the behavioral insights approach applies evidence about actual human behavior—rather than assumptions about it—to practical problems. This volume in the MIT Press Essential Knowledge series, written by two leading experts in the field, offers an accessible introduction to behavioral insights, describing core features, origins, and practical examples. These insights have opened up new ways of addressing some of the biggest challenges faced by societies, changing the way that governments, businesses, and nonprofits work in the process. This book shows how the approach is grounded in a concern with practical problems, the use of evidence about human behavior to address those problems, and experimentation to evaluate the impact of the solutions. It gives an overview of the approach's origins in psychology and behavioral economics, its early adoption by the UK's pioneering “nudge unit,” and its recent expansion into new areas. The book also provides examples from across different policy areas and guidance on how to run a behavioral insights project. Finally, the book outlines the limitations and ethical implications of the approach, and what the future holds for this fast-moving area.

The first decades of the twenty-first century have offered a remarkable shift in how policies are made as well as who designs them. Until this period, local, regional, and national policy advisors largely comprised economists, lawyers, and financial experts. But in an era when behavioral scientists are increasingly being asked to demonstrate the impact of their research, many are playing a much greater role in policy making across a range of sectors as a result. Written by a team of authors working across both academia and government, Behavioral Insights for Public Policy is the first textbook to fully examine how psychology can be applied to a range of public policy areas. It addresses a wide variety of topics from the origins of policy as well as major findings from behavioral economics and nudge theory, to large-scale applications of behavioral insights. The compilation is the first of its kind to broadly cover the underlying theory, history, major empirical examples, and practical applications to policy of nudges (or behavioral insights) for teaching and study in higher education. Featuring over 100 empirical examples of how behavioral insights are being used to address some of the most critical challenges faced globally, the book also includes a unique chapter from an organization actively implementing behavioral insights in policies along with various government institutions. Also featuring case studies looking at key policy issues, learning outcomes, a glossary of key terms, and an accompanying website, this important book will be essential reading for any student of applied psychology. It has also been produced for others interested in the topic from social, political, and economic sciences, as well as those in government looking for an overview of the key issues.

Psychology and Behavioral Economics offers an expert introduction to how psychology can be applied to a range of public policy areas. It examines the impact of psychological research for public policy making in economic, financial and consumer sectors, in education, healthcare and at workplace, for energy and the environment, and in communications. Your energy bills show you how much you use compared to the average in your area. Your doctor sends you a text message reminder when your appointment is coming up. Your bank gives you three choices for how much to pay off on your credit card each month. Wherever you look, there has been a rapid increase in the amount of interest we place on understanding real human behaviors in everyday decisions, and these behavioral insights are now regularly used to influence everything from how companies recruit employees through to large-scale public policy and government regulation. But what is the actual evidence behind these tactics, and how did psychology become such a major player in economics? Answering these questions and more, this team of authors working across both academia and government present this fully revised and updated reworking of Behavioral Insights for Public Policy. This update covers everything from the history of how policy was historically developed, major research in human behavior and social psychology, and key moments that brought behavioral sciences into the forefront of public policy. Featuring over 100 empirical examples of how behavioral insights are being used to address some of the most critical challenges faced globally, key topics covered include evidence-based policy, a brief history of behavioral and decision sciences, behavioral economics, and policy evaluation, all illustrated throughout with lively case studies and major empirical examples. Including end-of-chapter questions, a glossary, and key concept boxes to aid retention, as well as a new chapter revealing the work of the Canadian Government's behavioral insights unit, this is the perfect textbook for students of psychology, economics, public health, education, and organizational sciences, as well as public policy professionals looking for fresh insight into the underlying theory and practical applications in a range of public policy areas.

Includes bibliographical references and index.

Behavioural insights (BI) are lessons derived from the behavioural and social sciences, including decision making, psychology, cognitive science, neuroscience, organisational and group behaviour.

In this accessible collection, leading academic economists, psychologists and philosophers apply behavioural economic findings to practical policy concerns.

There has been an increasing effort to integrate behavioral insights into public policy. These insights are often reliant on social psychological research and theory. However, in this relatively young field, policy interventions and behavioral insights are often built on laboratory-based psychological research with effects that can prove to be unstable in the 'real world'. In this Element, the author provides a brief history of how behavioral insights have been applied to complex policy problems. The author describes ways in which behavioral insights have been successful and where they have fallen short. In addition, the author examines unintended negative consequences of nudges and provides a more nuanced examination of their impacts on behavior change. Finally, the author concludes with a set of recommendations for generating more effective practical applications of psychology to the field of public policy.

Behavioral Insights for Development: Cases from Central America brings together a set of experiences that applied behavioral insights to different areas of public policy—in some cases through randomized control trials, and in others using surveys or behavioral games. These experiences collectively show the promise of public policies that are informed by a better understanding of what drives individual behavior. In Costa Rica, for example, informing households of how much water they consume relative to their neighbors reduced water consumption (chapter 1). In Guatemala, altering the way government communicates with taxpayers increased revenue collection (chapter 2). In Nicaragua, an analysis of a cash transfer program found that children in households receiving benefits exhibited significantly higher cognitive development—a result influenced by parental behavior changes during the program (chapter 3). In El Salvador, we explore how different biases explain the apparent puzzle of a gas subsidy reform that benefited most of the population yet proved to be widely unpopular (chapter 4). Chapter 5 also uses behavioral insights to analyze subsidy reforms in El Salvador, this time using a different methodology: a set of economic behavioral games designed to evaluate the willingness of individuals to accept subsidy reforms that would affect them directly. Finally, chapter 6 reflects on the progress made in applying behavioral insights in a development context. These cases illustrate, in practice, some of the findings of the World Development Report 2015: Mind, Society, and Behavior. In particular, they demonstrate the possibility of using nontraditional tools, complementary to regulation, in contexts where time and resources are limited. The World Bank has since established a Mind, Behavior, and Development (eMBeD) Unit within the Poverty and Equity Global Practice to mainstream and scale up behavioral science in public policies and programs. We hope these experiences will help to inform other practitioners about the potential of applying behavioral insights in a development context and will encourage them to consider such approaches as a complement to traditional policy measures.

The academic field of behavioral science has developed rapidly in recent decades. The field draws on research from across the social and natural sciences, and it has consistently shown that humans are not always rational. This insight has had a profound impact on multiple fields, including economics, political science, and law. Since the early 2000s, the application of behavioral science to public policy has also grown exponentially. Policymakers and practitioners now regularly use behavioral science to rethink how they develop programs and solve social problems. The impact has been far-reaching; behavioral science has transformed how we think about the economy, public health, education, and beyond. In practice, behavioral insights have been used to raise tax revenues, help people access social welfare program benefits and employment opportunities, increase voter turnout, boost medication adherence, and more. There are now hundreds of entities – international organizations, governments, business, and nonprofits – building and investing in internal behavioral science teams. Unfortunately, most of the hard work of putting these teams together and applying behavioral science insights happens “behind the scenes.” This book unearths some of the stories and insights from pioneers in applied behavioral science, in their own words. How did their teams come about, and how did they grow? What projects have worked, and which have not? What have they learned, and what would they recommend to others seeking to build behavioral science teams of their own?