Nudge

#43: When financial incentives don’t work

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Nov 16, 2020
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INSIGHT

Behavioral Science as a New Lens

  • Behavioral science is more than small tweaks; it's a new lens to redesign policies and services.
  • This mindset can fundamentally improve government and company core operations beyond superficial changes.
INSIGHT

Producer-Focused Sugar Tax Works

  • The UK sugar tax targeted producers to reformulate drinks with less sugar rather than charging consumers directly.
  • This led to a 15% market share switching to lower sugar options, improving public health without changing consumer behavior.
ADVICE

Set Goals and Sunset Clauses

  • Focus on measurable results when applying behavioral insights to gain credibility and avoid skepticism.
  • Set sunset clauses to discontinue initiatives if goals aren’t met, avoiding ineffective zombie units.
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