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January 9, 2021
Defaults: Padding the Path of Least Resistance For reasons we have discussed, many people will take whatever option requires the least effort, or the path of least resistance.
Remember the idea of automatic renewal for magazine subscriptions? If renewal is automatic, many people will subscribe, for a long time, to magazines they don’t read.
Both of us have been stuck for several painful minutes behind some idiot who was having trouble with this machine, and have to admit to having occasionally been the idiot that is making all the people behind him start honking.
بعض الاجهزة تقبل الكرت باي طريقة ادخال ثم تعدل عليه و بعضها لازم طريقة محددة مما يسبب تأخر و مشاكل
automobiles have become much friendlier to their Human operators. If you do not buckle your seat belt, you are buzzed. If you are about to run out of gas, a warning sign appears and you might be beeped. If you need an oil change, your car might tell you. Many cars come with an automatic switch for the headlights that turns them on when you are operating the car and off when you are not, eliminating the possibility of leaving your lights on overnight and draining the battery.
خيارات الية
leaving your ATM card in the machine after getting your cash, or leaving the original in the copying machine after getting your copies. Most ATMs (but not all) no longer allow this error because you get your card back immediately.
Another automobile-related bit of good design involves the nozzles for different varieties of gasoline. The nozzles that deliver diesel fuel are too large to fit into the opening on cars that use gasoline, so it is not possible to make the mistake of putting diesel fuel in your gasoline-powered car
One study found that human error (rather than equipment failure) caused 82 percent of the “critical incidents.” A common error was that the hose for one drug was hooked up to the wrong delivery port, so the patient received the wrong drug.
Birth control pills present a special problem along these lines, because they are taken every day for three weeks and then skipped for one week. To solve this problem and to make the process automatic, the pills are typically sold in a special container that contains twenty-eight pills, each in a numbered compartment. Patients are instructed to take a pill every day, in order. The pills for days twenty-two through twenty-eight are placebos whose only role is to facilitate compliance for Human users.
On many corners, especially in neighborhoods frequented by tourists, the pavement has signs that say, “Look right!”
London
An important type of feedback is a warning that things are going wrong, or, even more helpful, are about to go wrong. Our laptops warn us to plug in or shut down when the battery is dangerously low.
Often people have a problem in mapping products into money. For simple choices, of course, such mappings are trivial. If a Snickers bar costs one dollar, you can easily figure out how much it costs to have a Snickers bar every day. But do you know how much it costs you to use your credit card? Among the fees you may be paying are: (a) an annual fee for the privilege of using the card (common for cards that provide benefits such as frequent flyer miles); (b) an interest rate for borrowing money (that depends on your deemed credit worthiness); (c) a fee for making a payment late (and you may end
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Social science research reveals that as the choices become more numerous and/or vary on more dimensions, people are more likely to adopt simplifying strategies.
We have sketched six principles of good choice architecture. As a concession to the bounded memory of our readers, we thought it might be useful to offer a mnemonic device to help recall the six principles. By rearranging the order, and using one small fudge, the following emerges. iNcentives Understand mappings Defaults Give feedback Expect error Structure complex choices
American households spent more than they earned and borrowed more than they saved.
For many Americans, savings rates, especially retirement savings, are woefully low, if not zero.
What can be done to help? We will be offering two central suggestions. The first is automatic enrollment in savings plans; the second is the Save More Tomorrow program.
economists do not agree about how much saving is appropriate, because they do not agree on the right level of post-retirement income.
The first step in participating in a defined contribution plan, such as a 401(k), is to enroll. Most workers should find joining the plan very attractive. Contributions are tax deductible,
For example, a common plan feature is that the employer will match 50 percent of the employee’s contributions up to some threshold, such as 6 percent of salary.
An alternative is to adopt automatic enrollment. Here’s how it works. When an employee first becomes eligible, she receives a form indicating that she will be enrolled in the plan (at a specified savings rate and asset allocation), unless she actively fills out a form asking to opt out. Automatic enrollment has proven to be an extremely effective way to increase enrollment in U.S. defined-contribution plans.6 In one plan studied in an early paper by Brigitte Madrian and Dennis Shea (2001), participation rates under the opt-in approach were barely 20 percent after three months of employment,
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Education is the obvious answer, and many employers have tried to educate their employees to make better decisions. Unfortunately, the evidence does not suggest that education is, in and of itself, an adequate solution.
Employees often leave educational seminars excited about saving more but then fail to follow through on their plans. One study found that at the seminar everyone expressed an interest in saving more, but only 14 percent actually joined the savings plan.
main conclusion should not be surprising to anyone who has read this far into the book: participation rates jump when enrollment is easy. Holding a seminar to explain the plan helps; having the forms there to fill out helps even more. (Have we mentioned that channel factors matter?) The most effective way to increase enrollment in a Save More Tomorrow plan is to combine it with automatic enrollment.
الاشتراك في زيادة الادخار
The primary role government needed to play was getting out of the way by reducing the barriers to adoption of these programs.
we think that it is an excellent example of nudging. Employers are not required to change their plans, but if they do, they get a reward that actually saves the taxpayers money (because no one has to read or check the form that no longer has to be completed).
Some of the factors that should go into your calculation include:
Humans are loss averse. Roughly speaking, they hate losses about twice as much as they like gains.
Most people need some help; good choice architecture and carefully selected nudges can go a long way.
the microfinance loans in developing countries that led to a well-deserved Nobel Peace Prize for Muhammad Yunus in 2006 often come with interest rates of 200 percent or more, yet the borrowers are made better off by these loans.2 On the other side, some observers think that the hue and cry about predatory lending is based entirely on the failure of left-leaning journalists and others to understand that risky loans require higher interest rates.
received in the mail during her senior year of high school suggested that getting a loan of forty thousand dollars could be as easy as ordering a pizza, and pictured a pizza chef promising a “Decision delivered within 15 minutes!”
Paying with a credit card is often faster than paying with cash, and lets you avoid struggling with change; digging into your pocket to find the correct change and managing the large jar of pennies at home are vexations from which you are liberated. Not to mention the frequent flyer miles! But if you are not careful, credit cards can be addicting.
if most people think that most people are starting to avoid unhealthy foods, or to exercise, more people will avoid unhealthy foods and will exercise.
weight loss can be contagious too.
called a “tragedy of the commons.” Each dairy farmer has an incentive to add more cows to his herd, because he obtains the benefits of the additional cows while suffering only a fraction of the costs; but collectively the cows ruin the pasture.
problem that contributes to excessive pollution is that people do not get feedback on the environmental consequences of their actions. If your use of energy produces air pollution, you are unlikely to know or appreciate that fact, certainly not on a continuing basis.
second approach is called a cap-and-trade system. In such systems those who pollute are given (or sold) “rights” to pollute in certain amounts (the “cap”) and these rights are then traded in a market.
Liberty is much greater when people are told, “You can continue your behavior, so long as you pay for the social harm that it does” than when they are told, “You must act exactly as the government says.”
Companies much prefer cap-and-trade systems to rigid government commands, because such systems allow more freedom and impose lower costs.
People who want to signal their green credentials are much happier in a Prius than a hybrid Camry because no one will know that the Camry is a hybrid unless she carefully examines some labeling on the car.
Take one example from the hotel business. Many hotel rooms, especially in Europe, require that the plastic room key used to enter the room be inserted in a slot by the door in order to turn on the lights. When the key is removed, the lights and air conditioning go off, but the power to the clock radio does not. Why are rooms designed this way? Because the hotel company has to pay the utility bills, and management knows that customers have no incentive to turn out the lights. Hotel companies are willing to pay the extra cost up front to include this feature.
Past attempts to notify people of their energy use with emails or text messages did no good, but what worked was to give people an Ambient Orb, a little ball that glows red when a customer is using lots of energy but green when energy use is modest. In a period of weeks, users of the Orb reduced their use of energy, in peak periods, by 40 percent. That flashing red ball really gets people’s attention and makes them want to use less energy.
even in a free market, companies often fail to use the latest products, and sometimes government can help them to make money while also reducing pollution.
success of these programs
منغر طريقة لي كوان يو .. ما الذي يعمل و يقوم به.
تستطيع الدولة ان تخصخص كل شيء لو جعلته من خلال شركات تطرح للاكتتاب العام للناس بسعر رمزي.
