Nudging in Government and Business
- Professor Richard Thaler, University of Chicago, in conversation with Professor Max Bazerman, Harvard University. They will discuss opportunities for collaboration between academia, business and government and how this can make BI interventions more effective.
- Behavioural Insights have helped restore common sense to economics, and has shown the predictable/systematic ways that people make mistakes. Government has spent a long time trying to change people’s minds and educating, but BI suggests you may be better off focusing on changing the environment in which decisions are made.
- We need more RCTs in government and business. It is better to try something on 10k people, before rolling out to millions. Yet, it’s often hard to persuade government and business to run RCTs. And even when you do, there is often rush to implement, rather than replicate.
- BI should avoid the demise of fads (e.g. Japanese management techniques), because we have data that it works. The evidence so far is that BI leads to more efficient and ethical world, but not to say shouldn’t be alert to misuse.