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From rational choice theory to behavioural economics and Nudge … my how far we’ve come!

Submitted by on June 15, 2010 No Comment

Although behavioural economics is not new, the way that we can apply our understanding of behavioural economics to the research and development of social marketing campaigns and behaviour change programs is still emerging in terms of good practice.

A combination of psychology and economics, behavioural economics challenges the basic tenets of rational economic theory on which much public policymaking has been based. 

Standard economic theory assumes that if we give people the right information, they will use that information to maximise their individual benefit and minimise personal costs – a concept known as rational choice theory.

Based on this kind of standard economic theory, the basic behaviour change model would have looked like this:

 

Over the last three decades however, leading behavioural psychologists have developed over 60 behavioural theories that seek to explain and predict behaviour change.  Their work was based on a hypothesis that providing people with information was not enough to lead to action.  Almost all of the behavioural models that emerged in the 1970s, 80s and 90s focus on the importance of understanding beliefs and attitudes, as precursors to behaviour change.  The basic behaviour change model consequently evolved to look more like this:

However, almost none of the models take into account behavioural economics, and this might explain why so many social marketing efforts have failed to achieve sustained behaviour change.  Even when well researched and developed communication campaigns have resulted in the adoption of positive, desirable beliefs and attitudes (and even behavioural intentions), sustained behaviour change has not always occurred.  Something has got in the way.  Something has intervened, as a barrier, between the adoption of a desirable attitude and the bedding down of a new, socially desirable behaviour. 

That something, I have begun to realise, is behavioural economics (heuristics and biases) as well as habit.  Perhaps, the basic behaviour change model now looks something like this …

In recent years, behavioural economics has been the subject of increasing attention in the public policy arena – not so much in Australia but certainly in the UK and parts of Europe and the US.  It has been popularised through several influential books such as Nudge[1], Influence[2], The Tipping Point[3], and others.

The main contribution of Behavioural Economics to the behaviour change debate has been three-fold:


  1. Recognition that the physical environment can have a key influence on human behaviour. Changes to the environment, often relatively small changes, can have a big effect on people’s behaviour. The role of the environment has been neglected in many of the traditional behaviour change models discussed earlier, as they have tended to focus on personal and social factors (such as beliefs, motivations, values, social norms, and so on).
  2. The concept of ‘Choice Architecture’.  This is the notion, developed by the authors of Nudge, of reconfiguring the physical environment in a way that makes it more likely that people will choose a behaviour that is better for them and better for other people…..whilst fully preserving their freedom to choose alternative behaviours.
  3. The role of heuristics in human decision making. Heuristics are short cuts, or ‘rules of thumb’, that people use to help them make decisions and judgments. They can be very useful but they can also lead to systematic biases.

What I am seeing in social marketing campaign and program design in recent times, is a greater appreciation of the need to take context, settings, and physical environment into account when doing good developmental behaviour change research.  We often refer to this as the ‘design’ tool of behaviour change, and it needs to be considered as part of good developmental research, along with ‘control’ strategies and ‘educate’ / ‘persuade’ strategies. 

Formative social marketing research needs to focus more on understanding the context in which the behaviour occurs, and draw in appropriate research methodologies to achieve this.  Understanding the impact of behavioural economics on the behaviour in question is crucial in developing effective policy interventions, and appropriate communication strategies. 



[1] Thaler, R. and Sunstein, C.  (2008) Nudge. Penguin Books

[2] Cialdini, R (2007). Influence: The psychology of persuasion. New York: Harper Business

[3] Gladwell, M (20001). The Tipping Point. London: Abacus

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