Post by account_disabled on Feb 22, 2024 6:21:15 GMT -5
Unlike the conventional study of Economics, behavioral economics does not assume that people are rational entities who only make strategic decisions to maximize resources. According to the Mexican Institute of Behavioral Economics, behavioral economics is the branch that operates at the intersection between human behavior, decision making and incentives, to understand and improve human behavior. This is a branch of economics that is still unknown and from which companies can benefit to revolutionize the sustainability movement. An example of this is through what can be called in Spanish “social proof.” This concept was one of the 6 principles that Doctor Robert Cialdini published in his book Influence: the psychology of persuasion. Dr. Cialdini and his students did multiple studies to test the principles in the book. In the case of social proof, they found that it arises from both our insecurities and the desire to do what is perceived as right. Therefore, it is a phenomenon in which one takes the behavior of other people as a reference to guide one's own behavior. In his article, Social Norms and Energy Conservation, in the Journal of Public Economics, Hunt Allcott reviewed the case of the company Opower. This company offers its users a report of how much energy they are using and compares it with that of their neighbors.
Allcott's studies show that this simple information Finland Mobile Number List has reduced people's energy use more than any other energy-efficient campaign. Those who receive the report with the extra information have taken short-term measures (change the type of light bulb) and even long-term measures (change the home's insolation) to reduce their energy use. Knowing what your neighbors are doing can influence what you do and this good behavior can be further reinforced. Opower also includes a smiley face in the report if you are using less energy than the average of your neighbors and this graphically persuades users to continue doing things right. This comparative report makes people think more and makes them more proactive regarding energy sustainability. Just having the information about your house doesn't seem to have much impact if you don't have the money to buy it. Adding this information doesn't cost much and has a great effect. Another concept from behavioral economics that can help with sustainability is loss aversion. This means that “not losing” makes us happier than “winning.”
o better illustrate this we can use as an example the use of thermoses or reusable containers when you order coffee to go in cafes. In some places, they give you a discount if you bring your own thermos. However, advertising professional Oliver Payne found that this doesn't change behavior efficiently because people don't care as much about “earning” a discount for bringing their own thermos. The most efficient way to create impact would be to introduce the discount price to the coffee and charge extra to those who want a disposable cup. That is, instead of initially charging a cup of coffee for 30 pesos and selling it for 20 pesos if you bring your own thermos, the most useful thing would be to advertise the coffee for 20 pesos and charge 30 pesos if you do not bring your thermos with you. In general, saving is not a very strong incentive, so people's reaction is much more different if you feel like you are paying more, compared to feeling like you are saving. These are just two examples that prove that how we present information can serve to create sustainable change, without much financial effort. Behavioral economics has much more terms and research that can serve small and large businesses.
Allcott's studies show that this simple information Finland Mobile Number List has reduced people's energy use more than any other energy-efficient campaign. Those who receive the report with the extra information have taken short-term measures (change the type of light bulb) and even long-term measures (change the home's insolation) to reduce their energy use. Knowing what your neighbors are doing can influence what you do and this good behavior can be further reinforced. Opower also includes a smiley face in the report if you are using less energy than the average of your neighbors and this graphically persuades users to continue doing things right. This comparative report makes people think more and makes them more proactive regarding energy sustainability. Just having the information about your house doesn't seem to have much impact if you don't have the money to buy it. Adding this information doesn't cost much and has a great effect. Another concept from behavioral economics that can help with sustainability is loss aversion. This means that “not losing” makes us happier than “winning.”
o better illustrate this we can use as an example the use of thermoses or reusable containers when you order coffee to go in cafes. In some places, they give you a discount if you bring your own thermos. However, advertising professional Oliver Payne found that this doesn't change behavior efficiently because people don't care as much about “earning” a discount for bringing their own thermos. The most efficient way to create impact would be to introduce the discount price to the coffee and charge extra to those who want a disposable cup. That is, instead of initially charging a cup of coffee for 30 pesos and selling it for 20 pesos if you bring your own thermos, the most useful thing would be to advertise the coffee for 20 pesos and charge 30 pesos if you do not bring your thermos with you. In general, saving is not a very strong incentive, so people's reaction is much more different if you feel like you are paying more, compared to feeling like you are saving. These are just two examples that prove that how we present information can serve to create sustainable change, without much financial effort. Behavioral economics has much more terms and research that can serve small and large businesses.