“Many a slip between the cup and the lip”: The effects of default-based nudges on pro-social behavior and attitudes

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  • 7/26/2019 Many a slip between the cup and the lip: The effects of default-based nudges on pro-social behavior and attitudes.

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    Many a slip between the cup and the lip:The effects of default-based nudges on

    pro-social behavior and attitudes.

    Alexia Gaudeul1 & Magdalena Kaczmarek2

    Georg-August-Universitt, Gttingen

    Institute of Psychosocial Medicine and Psychotherapy,University Hospital Jena

    May 24, 2016Kassel

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    The Nudger

    The Nudge

    The Nudgee

    Wealth,

    Health, andHappyness!!!

    Any aspect of the choicearchitecture that altersbehavior in a predictable waywithout forbidding any options

    or significantly changing theireconomic incentives (Thaler &Sunstein, 2008)

    Supposedly in a way thatpeople, after careful

    consideration, would considerto be in their best interest (proself vs. pro social?)

    Nudges

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    Gap between long term goals and short term behavior

    System 2 (Reasoning, Explicit):

    Goal oriented & reflective

    Requires cognitive engagement

    Driven by values and intentions

    Intervention

    Changing Mind:

    Alter beliefs and attitudesthrough information

    Motivate with prospect of futurebenefits

    Results: Modest effectiveness

    Nudges and why they are needed

    System 1 (Intuitive, Implicit):

    Automatic and affective

    Requires no or little cognitiveengagement

    Driven by immediate feelings andtriggered by our environment

    Intervention

    Altering social and physicalenvironments to make certain

    behaviors more likely Social norm feedback (taxes)

    Changing defaults (organdonation

    Altering physical environments(Ikea, supermarkets)

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    Nudging Make non-smoking more visible

    through mass media campaigns

    communicating that the majority

    do not smoke and the majority of

    smokers want to stop

    Serve drinks in smaller glasses

    Make salad rather than chips thedefault side order

    Make stairs, not lifts, more

    prominent and attractive in public

    buildings

    Legislation Ban smoking in public places

    Increase price of cigarettes

    Regulate pricing through duty or

    minimum pricing per unit

    Ban industrially produced transfatty acids

    Increase duty on petrol year on

    year (fuel price escalator)

    Smoking

    Alcohol

    Diet

    Physical

    Activity

    Nudges Many domains of applications

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    Nudges Examples

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    Nudges Examples

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    The nudgee might rebel!

    What about the nudgee?

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    Limited research from the perspective of the nudgee (the personbeing nudged).

    Do they prefer overt or covert nudges? (Felsen et al., Public attitudes towards overt and covert nudges,

    Judgment and Decision Making, 2013) People prefer conscious decisional enhancements

    What do they think about the nudge?

    (Gunnlaugsson, Informed Nudges, 2014)

    Revealing manipulation neg. affects acceptance of the intervention

    What about the nudgee?

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    KASSEL 2016 AFTER THE NUDGE - GAUDEUL & KACZMAREK 9

    Who wants to be nudged? (Pedersen et al , Who wants paternalism?, Bulletin of Economic Research,

    2012)

    Attitudes towards nudges are not linked to self- control, but attitudestowards strong paternalism are.

    What do they think about the nudger? (Kataria et al, Paternalism with Hindsight , Social Choice and Welfare,

    2014)

    Consequential stand on paternalism, punishment when outcome is bad

    Do nudgees stop thinking about their choices? (de Haan & Linde, Good Nudge Lullaby , 2011)

    Do nudgees start ignoring or avoiding nudges? (Damgaard & Gravert, The effect of deadlines on charitable giving , 2016)

    What about the nudgee?

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    Research questionsand hypotheses

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    How does the nudge affect peoples perception of charities andof the nudged behavior?

    Can a one-time nudge change peoples mind about thedesirable action?

    or do they react to it mechanically, i.e. once the nudge is gone, thebehavior is also gone?

    Research questions

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    In this case, the nudge leads to a change in attitude

    possible longer term effect.

    Nudge Change in attitude

    cdf attitude

    Threshold for contribution

    People

    Attitude

    Nudge

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    In this case, the nudge works by making it easier to contribute

    less likely to survive

    Nudge Pressure to contribute

    cdf attitudeThreshold for contribution

    People

    Attitude

    Nudge

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    H1: The default option is more likely to be chosen at the time ofapplication

    H2: Attitudes towards or against the charity and the nudginginstitution will be shaped by resisting or yielding to a nudge.

    H3: Pledges in the second phase will reflect attitudes generatedin the first phase.

    H4: People who are nudged towards charity giving will be lesscommitted to actually donate than people who decided to do

    so against the nudge.

    Hypotheses

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    The experiment

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    1st Phase People are offered 2 to fill a survey.

    Four treatments:

    Nudge to pledge.

    Nudge to keep. Nudge to pledge with choice.

    Nudge to keep with choice.

    2nd Phase: Free choice to pledge or keep 2 again.

    3rd Phase: Collect money (4) and contribute.

    The experiment

    Pledge

    Pledge

    Donation

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    The experiment

    Randomized

    emails to 3762

    subjects

    (Max Planck

    Orsee database)

    Questionnaires and Filler Tasks

    Demographic variables, Questions

    regarding attitudes to risk, fairness

    and trust, Big Five, CRT.

    Manipulation

    1. No nudge (n=210)

    2. Nudge (n=190)

    3. No nudge with choice (n=191)

    4. Nudge with choice (n=195)

    5. Control (n=202)

    Attitude Measures

    towards charity

    towards the nudger (MPI)

    towards the nudge

    Questionnaires and Filler Tasks

    Demographic variables , Questions

    regarding attitudes to risk, fairness

    and trust, Big Five, CRT.

    Manipulation

    1. No nudge (1&2; n=346)

    2. No nudge with choice (3&4;

    n=330)

    Attitude Measures

    towards charity

    towards the nudger (MPI)

    towards the nudge

    Payout

    (N=460)

    3 days 2 weeks 3 days 2 weeks

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    1. I would like to know more about the charity (+)

    2. I think the work of the charity is important (+)

    3. I am interested in the work of the charity (+)

    4. I am indifferent about the work of the charity (-)

    5. I think the work of the charity has got meaning (+)

    6. There should be more charities like . . . (+)

    7. The charity makes good use of its money (+)

    8. The charity wastes its money (-)9. My opinion of the charity is positive (+)

    10. The charity contributes in an important way (+)

    Attitude to the charities

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    1. I would like to have the opportunity to contribute in futureexperiments (+)

    2. I would contribute money to charities in future experiments (+)

    3. I felt forced to contribute (-)

    4. I am happy with my decision (+)

    5. I do not like this campaign for donations (-)

    Attitude to the nudge

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    The sample

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    Demographics and consistency in answers

    First periodSecond period

    consistency

    Age 24 99%

    Female 65% 100%

    German 95% 100%

    Education56% Abitur

    22% Bachelor

    96%

    98%

    Parents

    education

    34% Both Abitur

    27% One Abitur

    96%

    97%

    Environment

    26% Village

    36% Town

    33% City

    92%

    82%

    89%

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    Findings

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    Pledges and donations

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    Pledges and donations

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    Result 1: Participants who were nudged to pledge were almosttwice more likely to pledge donations to charities in the firstphase of the experiment. This confirms hypothesis 1.

    In treatments with a choice of charities: 37.9% of 190 participantspledged in the treatment with a default to pledge vs. 19.8% of 212participants if the default was to keep.

    (two-sample test of proportions, z-statistic=-4.02, p

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    Result 2: Nudges did not affect attitudes of pledging or nonpledging participants. This goes against Hypothesis 2.

    Index of attitude to charities with a Cronbach's alpha taking values from0.86 to 0.92 depending on the charity.

    Whether with choice of charities and whether pledged or not, nodifference in attitude to charities depending on if there was a nudge topledge or a nudge to keep.

    Effect on attitudes

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    Result 3: Participants who were nudged to pledge in the firstphase were neither more nor less likely to pledge in the secondphase. This confirms hypothesis 3.

    Without choice of charities, 21.6% of participants who were nudged topledge in the first phase pledged in the second phase, compared with20.1% if they had been nudged to keep

    (z-statistic=-0.33, Pr(Z

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    Pledged 4 Pledged 2 Pledged 0

    Nudge to keep 28,0% 42,9% 56,4%

    Nudge to pledge 29,4% 46,2% 67,3%

    Nudge to keep

    Choice of charities

    43,3% 35,3% 60,7%

    Nudge to pledge

    Choice of charities

    22,2% 47,1% 64,9%

    Total 30,4% 43,2% 61,9%

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    Note: Good correspondence between pledges, recall of pledges and actualdonations

    Commitment to pledges

    % of participants coming to collect

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    Result 4: Nudging participants to pledge to a charity did notmake those who pledged less likely to collect. This contradictshypothesis 4. However, nudging to pledge did make non-pledging participants less likely to collect.

    Subjects who pledged in the nudge to pledge treatments were notless likely to come collect the money than those who pledged in thenudge to keep treatments.

    But subjects who did not pledge in the nudge to pledge treatments

    were more likely to come collect the money than those who did notpledge in the nudge to keep treatments.

    Commitment to pledge

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    Summary, discussionand conclusion

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    Strong impact of default nudges on individual pledgingbehavior,

    but neither do those pledges predict long-term commitment,

    nor do they translate into actual giving.

    Yielding to a nudge was not associated with better attitudes tocharities but neither did not yielding lead to hardening in theattitudes of participants.

    because the nudged behavior did not generate significant cognitivedissonance to be compensated for by changes in attitudes?

    Nudges worked only at the margin, on people close toindifference? no long-lasting effect of the nudge.

    Summary and discussion

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    In terms of actual donations, pledging default does not lead to morecommitment to pledge among pledging participants, but to morecommitment not to pledge among non-pledging participants.

    revealed effect of nudges on attitudes?

    Summary

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    Decisions can be guided towards the preferred outcome forthose people who do not hold strong preferences against it.

    Those who resist a nudge may become more committed to thatresistance.

    Nudges are better accepted if there is some leeway in how torespond to the nudge.

    Default nudges are effective for specific and limited alterationsof behavior, but are not enough for transformational changes in

    values and attitudes needed for long-term success.

    Conclusion