The gentle push: architectures of choice Nudging example: A HEALTHY DIET FOR ALL CITIZENS COMMAND AND CONTROL: It is forbidden It is required MONETARY INCENTIVE: Bonuses and penalties NUDGING: No commands nor monetary incentives. Just making the choice easier Nudging COMMAND AND CONTROL: It is forbidden to sell fatty foods It is required to sell fruits and vegetable MONETARY INCENTIVE: Bonuses and penalties tax on fat content of food, subsidy for growing fruits and vegetables NUDGING: No commands nor monetary incentives. Just making the choice easier Place fruits and vegetable at the beginning of the store/restaurant in a visible position, easy to reach and place fatty food further away Nudging COMMAND AND CONTROL: It is forbidden to sell fatty foods It is required to sell fruits and vegetable MONETARY INCENTIVE: Bonuses and penalties tax on fat content of food, subsidy for growing fruits and vegetables NUDGING: No commands nor monetary incentives. Just making the choice easier Place fruits and vegetable at the beginning of the store/restaurant in a visible position, easy to reach and place fatty food further away Nudging Toilets The fly drawing reduces spilling of about 80 per cent Liberal Paternalism Paternalism: Some make choices that are not in their best interest. Through nudging, they can avoid these mistakes . Liberal: Let all choices open to citizens Avoids to impose a solution “one-size-fits-all” to everyone It is anyway hard to adopt architecture of choice that are “neutral” Examples of policies inspired by behavioral economics Default rules Disclosure requirements Default rules Default rules Example: Organ donation Explicit Consent: those who want to become donor can express her will through a series of steps In Iowa (US) one can mark a form so that the donor status will be written on the drivers’ licence Only 64% of those who in a survey diclared to be personally available to be donors had actually mark the space in the form. Organ availability is much lower than demand. What can be done? Default rules Example: Organ donation Forced donation: the State can take the organs of dead individuals or individuals in terminal conditions without asking permission to anyone This principle could save many human lives. No State every adopted this policy. Although some States do it for eye tissues (Georgia). Default rules Example: Organ donation Default permission: we presume that alla citizens agree to be organ donors; however, those who want to do so they can easily register their refusal to donate their organs. The easier it is to record the refusal, the more this policy is respectful of individual freedom. This has similarities to explicit consent: those who have preferences that are different from the default rule have to record their will of not participating. This policy reverses the default rule. Organ donations Neutral framing Implicit permission Changing your Choice is very easy Explicit Consensus Online survey: are you willing to donate your organs? Johnson e Goldstein (2003) Organ donations Online survey: are you willing to donate your organs? Johnson e Goldstein (2003) In your State all citizens are considers by default NOT DONORS DONORS NO DEFAULT Organ donations Online survey: are you willing to donate your organs? Johnson e Goldstein (2003) In your State all citizens are considers by default NOT DONORS DONORS NO DEFAULT Organ donations Online survey: are you willing to donate your organs? Johnson e Goldstein (2003) In your State all citizens are considers by default NOT DONORS DONORS NO DEFAULT Organ donations Donor frequency in States with Explicit Consent (yellow) Organ donations Donor frequency in States with Implicit permission (blue) Example of public policy: Internet Explorer Ballot Box The European Commission sanctioned Microsoft for violation of anti-competition laws. In 2010 all Windows-based PCs uses had the option to adopt a browser different from Explorer so to remove the forced default of Windows. Esempio di politica pubblica: Internet Explorer Ballot Box 1 every 4 users downloaded a different browser. This made the market more competitive. Disclosure requirement Hygene in restaurant kitchens – California, USA In 1998 the Los Angeles county has introduced a certifications for the degree of hygene to be displayed on the outside door of the restaurant. Results of inspections “A” score of 90 – 100 “B” score of 80 – 89 “C” score of 70 – 79 Below 70 Not acceptable Hygene in restaurant kitchens California, USA This disclosure requirement has - - - - Improved the results of inspections Made consumers more aware about hygene in restaurants Lowered the number of hospital accesses for diseases related to food (Zhe e Leslie, 2003) Hygene in restaurant kitchens California, USA Labels on electronic equipments Labels for energy efficiency of houses Labels for cars in USA One can make it even clearer (es. Cost per km) One can require to placed it near the car plate (social pressure) Register of toxic emissions Nel 1986 negli USA sorge l’obbligo di riferire al governo nazionale le quantità di sostanze chimiche potenzialmente dannose (circa 650) che sono state immesse nell’ambiente o sono in deposito e dove sono ubicate. Le informazioni sono online e liberamente consultabili da qualunque cittadino. Ha migliorato le performance ambientali delle imprese Ha scoraggiato imprese inquinanti ad aprire nuove fabbriche (Powers, 2009) Register of toxic emissions Pressione sociale a non inquinare da parte della cittadinanza e delle associazioni sul territorio Competizione virtuosa tra le imprese a non finire sulla “lista nera” delle più inquinanti (cattiva pubblicità) Uno dei problemi ambientali più imponenti è il riscaldamento globale del pianeta: Istituire un registro delle emissioni di gas serra?