Freakonomics Radio

397. How to Save $32 Million in One Hour

Nov 14, 2019
David Halpern leads the Behavioral Insights Team and has been pivotal in applying behavioral science to policy, while Mithesh Patel directs the Penn Medicine Nudge Unit, focusing on healthcare. They discuss the transformative potential of behavioral nudges in various sectors, from healthcare to policing. The duo explores innovative strategies to enhance decision-making in critical situations and the surprising effectiveness of nudging in areas such as tax compliance and crime prevention. Can these techniques tackle bigger issues like income inequality? Listen to their intriguing insights!
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INSIGHT

Evidence-Based Policy

  • Governments should base policymaking on empirical evidence, not opinions or whims.
  • The Behavioral Insights Team (BIT), or "Nudge Unit," was created in 2010 to apply this principle.
ANECDOTE

The Fly in the Urinal

  • Pictures of insects in Dutch airport urinals reduced spillage by providing men with a target.
  • This "nudge" demonstrated the power of subtle prompts to change behavior.
INSIGHT

Sunset Clause

  • The Behavioural Insights Team (BIT) was initially set up with a two-year sunset clause.
  • This reflected the uncertainty of its success and a commitment to evaluate effectiveness.
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