For the last few hundred years, a simple assumption has dominated economic thinking about human nature: We are rational creatures. When faced with alternatives, we carefully maximize our utility, just like those hypothetical agents in the Econ 101 textbooks.
Unfortunately, the latest research on the mind demonstrates that a whirligig of emotions, instincts and biases, many of which operate outside conscious awareness, shapes our behavior.
In recent years, politicians have begun proposing policies directly inspired by this conception of human nature. Many of these ideas have come from the rapidly growing field of behavioral economics, which uses the insights of psychology and neuroscience to construct more realistic models of how we decide. This research often focuses on irrational choices, such as taking out subprime mortgages and ordering double bacon cheeseburgers.
Behavioral economists hope to construct "nudges" that push us in a more responsible direction. They do this primarily by tweaking our decision-making environment, altering the way we perceive our options. For instance, studies show that placing fruit at eye level in a school cafeteria can dramatically increase sales. Instead of gorging on cookies, the kids are nudged into eating apples.
The influence of behavioral economics is already visible in the halls of power. Cass Sunstein, a Harvard legal scholar and co-author of "Nudge," a best-selling survey of the field, is serving in Barack Obama's White House. British Prime Minister David Cameron, meanwhile, has established a "nudge unit" in his Cabinet office and regularly consults leading academics in the field.
No comments:
Post a Comment