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Top1. Introduction: A Framework Of Research In Be
The OECD's (2017) focus on BE systematizes the process to intervene in people's decision-making in four phases:
- 1.
Definition of the problem (challenge)
- 2.
Identification of cognitive bias (behavioral insight)
- 3.
Proposed solution (nudge)
- 4.
Evaluation of the intervention including indicators to measure the impact
In order to design the most appropriate intervention and, consequently, act as effective choice architects, this document works in this same purpose to support the work of social scientists.
The first problem a researcher can find when using appropriate BE is stumbling upon the diversity of biases that are recalled in its literature (point 2).
Biases and heuristics are key pieces of BE to argue its principle of bounded rationality (Simon, 1956). In the presence of cognitive biases, the person is impeded to follow the classic principle of rationality, and their reasons to decide get influenced by heuristics that take the result far from the expected classic behavior of maximizing utility in a perfect-information context. Moreover, Tversky and Kahneman (1979) formulated their prospect theory to finish off the expected utility hegemony exposed by Neumann and Morgenstern (1944).
In point 3, six case studies are described following the OECD’s scheme. That research layout makes it easier to visualize the storyline of behavioral studies and to realize how to shape choices based on the cognitive biases identified in step 2, which requires a previous analysis using all the information provided by the available sources, specially the knowledge about the decision-maker and their context.
Thaler (2016) concedes that the economic approach should be complemented by other disciplines like psychology, sociology, marketing, anthropology, etc. that will play an essential role to define and understand the user experience for each project.
Step 4, the evaluation of these examples, is developed in point 4, establishing proper indicators for each case.
Additionally, I frame the characteristic behavioral method of analysis by adding an appendix (Appendix A) that defines when to nudge, what nudging is not and the main types of nudges, according to the works of Richard Thaler and Cass Sunstein.
This paper joins the aim of some institutions like The Behavioral Insights Team (2015), The European Central Bank (2020) or Rotman School of Management (2020) to develop the mechanics of BE framework applied to research.
Only if the investigators in the area form a similar analysis framework, comparable to the systematic classic model, will behavioral economists be able to succeed in demonstrating the importance and utility of their approach.
Top2. Manageability Of Cognitive Biases
Manoogian (2018) and The Decision Lab (2020) are two of the scarce attempts to establish a common reference with respect to cognitive biases. This deficiency represents a weakness for researching purposes. Even in these contributions, we find some problems: practically unlimited biases that complicates its identification, blurry limits between the different biases, and absence of examples.
In Table 1, we list the most frequent biases found in the bibliography in the field, in an attempt to avoid duplicities, overlays and contradictions.
The need to expand this template further than those 12 biases, will depend on the projects carried out by the “nudge units” and researchers working in the field of BE, and depending on the level of success of the projects executed by these institutions and other researchers, to influence people.