PSYC1005 Study Guide - Final Guide: Choice Architecture, Rational Agent, Late Fee

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17 May 2018
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Department
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The Social Psychology of Behaviour Change
Social psychology - the scientific study of how people's thoughts, feelings and behaviours are influenced
by others (actual, imagined, implied) including cultural norms, authorities, laws, institutions, groups and
individuals.
Psychological Explanations of Behaviour
In economics, assumption of the rational actor with a computer-like ability to weigh options and behave
accordingly, dominant until recently.
In psychology, use of heuristics and biases. They have beliefs and make choices that are not optimal,
they act on intuition.
In social psychology, work on social norms and social identity shows we are influenced by those
categorised as similar to self in a given context.
Work in sociology and social networks - there is an emphasis on similar others through homophily and
peer groups.
Rational Actor (model of behaviour)
Citizens weigh up costs and benefits - can affect this process through "costs" (price, laws) and
information provision.
Using costs-benefits possible to incentivise people to behave in particular ways.
"Information-deficit" or "knowledge-deficit" often addressed to reset costs and benefits.
Strengths
Weaknesses
1. Model of behaviour is easy
to understand.
2. "Interventions" easy to
apply, eg: increase price.
3. Some evidence behaviour
does respond to price and
other incentives (usually
simple behaviours).
1. Assumes human actor is only an "individual" serving own
self-interest, eg: child care late fee(?).
2. Limited evidence people fully informed costs and benefits.
3. Often behaviour of interest in public policy domains
complex causes.
4. Price and other ways to incentivise often communicate
more than individual costs and benefits also communicate a
social norm (what 'we' do).
Heuristics and Biases (bounded rationality)
People rarely have access to key information and often cannot process it even if they do.
Often people have beliefs and make choices that are not optimal, they act on intuition.
There are a range of cognitive heuristics (rules of thumb) that can lead to systematic and predictable
errors.
A nudge is any aspect of the choice architecture that alters people's behaviour in a predictable way
without forbidding any options or significantly changing their economic incentives.
- To count as a mere nudge, the intervention must be easy and cheap to avoid.
- Nudges are not mandates, eg: putting fruit at eye levels counts but banning junk food does not.
Choice architecture - the physical, social, and psychological aspects of the contexts that influence and in
which our choices take place.
Strengths
Weaknesses
1. Major change in thinking - huge achievement
in social and cognitive psychology.
2. Growing evidence decision-making affects
range of factors (move away from rational
actor).
3. Focus on 'overcoming' hidden/unintended
biases offering new solutions.
1. Piecemeal list of heuristics and biases lack
overarching model.
2. "Biases" may be product of
system/socialisation not inherent cognitive
system.
3. 'Small' nudges may only have short term
impact.
Social Normative Influence
People are motivated to act in the same way as others but can misperceive the relevant norms.
By clarifying and communicating the norm it is possible to shift behaviour.
Rely on normative beliefs of what peers think - those we know and trust (opinion leaders, high status) to
work out behaviour.
Eg: Drink driving and risky driving: 'Most Montana Young Adults 4/5 Don't Drink and Drive'
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Document Summary

Social psychology - the scientific study of how people"s thoughts, feelings and behaviours are influenced by others (actual, imagined, implied) including cultural norms, authorities, laws, institutions, groups and individuals. In economics, assumption of the rational actor with a computer-like ability to weigh options and behave accordingly, dominant until recently. They have beliefs and make choices that are not optimal, they act on intuition. Citizens weigh up costs and benefits - can affect this process through costs (price, laws) and information provision: using costs-benefits possible to incentivise people to behave in particular ways. information-deficit or knowledge-deficit often addressed to reset costs and benefits. People rarely have access to key information and often cannot process it even if they do: often people have beliefs and make choices that are not optimal, they act on intuition. To count as a mere nudge, the intervention must be easy and cheap to avoid.

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