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Tag: behavioural economics
Rory Sutherland uses the theory of behavioural economics and a number of humorous but valid examples to explain that, when faced with big challenges, the common response of most corporations and governments is to seek big, expensive fixes. In doing so, more obvious and cheaper solutions that stand a higher chance of success are generally ignored.
A recent study revealed that adding personalised smiley or unhappy face icons on people’s energy bills had a dramatic effect on their future consumption. Could something this simple -- playing on bourgeois guilt -- help reverse climate change?