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Behavioral Insights

Part of The MIT Press Essential Knowledge series

Author Michael Hallsworth, Elspeth Kirkman
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The MIT Press
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On sale Sep 01, 2020 | 248 Pages | 9780262539401
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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.
Michael Hallsworth, PhD, is Managing Director of the Behavioral Insights Team (BIT) North America. He has held positions at Columbia University and Imperial College London.

Elspeth Kirkman founded BIT's North American office before returning to the UK to run the organization's social policy portfolio out of London. She has taught behavioral insights courses at Harvard and Warwick Universities and is a Visiting Senior Research Fellow at King's College London.
Michael Hallsworth View titles by Michael Hallsworth
Elspeth Kirkman View titles by Elspeth Kirkman
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Series Foreword vii
Preface ix
Acknowledgments xiii
1 Introducing Behavioral Insights 1
2 The History and Thought behind Behavioral
Insights 25
3 Examples of Behavioral Insights in Practice 71
4 Applying Behavioral Insights 81
5 Criticisms, Considerations, and Limitations 123
6 The Future of Behavioral Insights 167
Glossary 197
Notes 203
Further Reading 219
Index 221
The behavioral insights approach is perhaps best understood as a lens through which we see policies, programs, and services—and that enables us to introduce new options, enhance existing ones, and reassess current activity.
The new options offered by behavioral insights have tended to attract the most attention. As the case of food consumption shows, the evidence may have surprising implications that cut against our assumptions and open up new ideas. As discussed later, many of these ideas may deal with the way that choices are structured—what has been called “choice architecture.” For example, many people display a “compromise effect,” whereby they use a mental shortcut of “go for the middle option.” Awareness of this compromise effect may reveal new approaches. Studies have shown that soft-drink consumption can be reduced by removing the largest cup size on offer and adding a smaller one at the bottom of the scale, since people often choose the middle option, regardless of its size. And thinking more carefully about the order in which options are presented offers another new opportunity. For example, sales of a sugared soft drink declined when it was moved from first to third in the list of options in electronic touchscreen kiosks in 622 McDonald’s restaurants.
However, the behavioral insights approach does not just offer new tools. Using it as a lens can also, for example, reveal how existing actions may be creating unintended and undesirable behaviors; it could highlight the biases that affect policymakers themselves; it could show the flawed assumptions about behavior in a proposed rule and show how it can be changed; or it could show that the best solution may not be attempting to change behavior at all, but rather redesigning services around what is already occurring.
This point is worth stressing because it counters some misperceptions about the true scope and value of behavioral insights. One is that the behavioral insights approach is just an alternative to more traditional instruments like information, taxation, or legislation—and has nothing to say about these options. As just shown, behavioral insights can provide recommendations about how these approaches should be put into practice that can make the difference between success and failure. Another misperception is that the approach just deals with tweaks or incremental changes—or that it is focused solely on individuals’ decisions. As shown earlier, this approach can be used to completely rethink and redesign systems or policies like sugared drink taxation. A final misperception is to see the behavioral insights approach just as an optional extra “tool” that policymakers can use (or not) if they feel like it. But since most government policies are concerned with influencing behavior (from murder laws to sex education), behavioral insights will have something to say about most policies.
Copyright © 2020 by Michael Hallsworth and Elspeth Kirkman. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
"A brilliant book, packed with wisdom and insights, and a ton of fun to boot. The best one-stop shop, if you're interested in behavioral science, and in how to improve the world."
 
Cass R. Sunstein, Robert Walmsley University Professor, and coauthor of Nudge

"A pragmatic and engaging overview."—LSE Review of Books

About

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.

Creators

Michael Hallsworth, PhD, is Managing Director of the Behavioral Insights Team (BIT) North America. He has held positions at Columbia University and Imperial College London.

Elspeth Kirkman founded BIT's North American office before returning to the UK to run the organization's social policy portfolio out of London. She has taught behavioral insights courses at Harvard and Warwick Universities and is a Visiting Senior Research Fellow at King's College London.
Michael Hallsworth View titles by Michael Hallsworth
Elspeth Kirkman View titles by Elspeth Kirkman

Table of Contents

Series Foreword vii
Preface ix
Acknowledgments xiii
1 Introducing Behavioral Insights 1
2 The History and Thought behind Behavioral
Insights 25
3 Examples of Behavioral Insights in Practice 71
4 Applying Behavioral Insights 81
5 Criticisms, Considerations, and Limitations 123
6 The Future of Behavioral Insights 167
Glossary 197
Notes 203
Further Reading 219
Index 221

Excerpt

The behavioral insights approach is perhaps best understood as a lens through which we see policies, programs, and services—and that enables us to introduce new options, enhance existing ones, and reassess current activity.
The new options offered by behavioral insights have tended to attract the most attention. As the case of food consumption shows, the evidence may have surprising implications that cut against our assumptions and open up new ideas. As discussed later, many of these ideas may deal with the way that choices are structured—what has been called “choice architecture.” For example, many people display a “compromise effect,” whereby they use a mental shortcut of “go for the middle option.” Awareness of this compromise effect may reveal new approaches. Studies have shown that soft-drink consumption can be reduced by removing the largest cup size on offer and adding a smaller one at the bottom of the scale, since people often choose the middle option, regardless of its size. And thinking more carefully about the order in which options are presented offers another new opportunity. For example, sales of a sugared soft drink declined when it was moved from first to third in the list of options in electronic touchscreen kiosks in 622 McDonald’s restaurants.
However, the behavioral insights approach does not just offer new tools. Using it as a lens can also, for example, reveal how existing actions may be creating unintended and undesirable behaviors; it could highlight the biases that affect policymakers themselves; it could show the flawed assumptions about behavior in a proposed rule and show how it can be changed; or it could show that the best solution may not be attempting to change behavior at all, but rather redesigning services around what is already occurring.
This point is worth stressing because it counters some misperceptions about the true scope and value of behavioral insights. One is that the behavioral insights approach is just an alternative to more traditional instruments like information, taxation, or legislation—and has nothing to say about these options. As just shown, behavioral insights can provide recommendations about how these approaches should be put into practice that can make the difference between success and failure. Another misperception is that the approach just deals with tweaks or incremental changes—or that it is focused solely on individuals’ decisions. As shown earlier, this approach can be used to completely rethink and redesign systems or policies like sugared drink taxation. A final misperception is to see the behavioral insights approach just as an optional extra “tool” that policymakers can use (or not) if they feel like it. But since most government policies are concerned with influencing behavior (from murder laws to sex education), behavioral insights will have something to say about most policies.
Copyright © 2020 by Michael Hallsworth and Elspeth Kirkman. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.

Praise

"A brilliant book, packed with wisdom and insights, and a ton of fun to boot. The best one-stop shop, if you're interested in behavioral science, and in how to improve the world."
 
Cass R. Sunstein, Robert Walmsley University Professor, and coauthor of Nudge

"A pragmatic and engaging overview."—LSE Review of Books

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