Behavioural Economics

Tēnā rawa atu koe to Shane Ngan from Department of Internal Affairs for an entertaining and informative session. Shane shared his Behavioural Economics journey and a few fun exercises.

Shane was concerned about how 'insighty' some of our insights are ;) So he decided to return to Uni…and is finding it really hard :) Shane took us through a couple of exercises and got some good discussion going. 

Exercise #1:

  • Handing out to every second person
  • Population of Guangzhou
  • Influenced by the figure we are given…and it’s called “anchoring”
  • And we don’t adjust to it enough
  • How could we use this to improve our services?
  • The idea of “pre-existing” anchors – not being able to rationalise out of that
  • Credit card payments suggest a rate and people don’t deviate from that…but if you remove, research shows that people will pay more
  • Charities putting an amount, people won’t pay too much below as seen to be “socially acceptable”
  • Managing people’s expectations about what they might be entitled to
  • Uber’s option for tipping ($1, $2 or $5) and hiding the option not to tip (which is a sneaky default)
  • Existing ‘racist’ anchors, e.g. 48% of Māori smoke, x% of Māori men in prison population – look at reframing in a positive way
  • Social norms = a % of the population does something, then that is applied as the norm for what we do
Exercise #2:
  • Outcome = explain the rule for the sequence
  • Most people when they get it right don’t want to have another go – confirmation bias
  • So what can we do about confirmation bias in our work?
  • Prototyping and testing – if we’re only showing the one thing, how do we know it’s the right thing?
  • “design like you’re right, test like you’re wrong”
  • Want to be able to look for the breadth of response, rather than the positive
  • People think of the solution of what they want – “you are not your users”
  • HIPPO – Highest Paid Person’s Opinion – take them into testing
  • Being able to position yourself as the expert
  • Being able to have the conversations in a public space – not so confronting
  • Check out the Netflix doco “The Flat Earth” and “Everybody’s Doing It” Candid Camera video 

Veerle Snijders from Ministry of Justice has also very kindly provided some additional Behavioural Insights resources:

EAST framework by BIT 

Daniel Kahneman - Thinking Fast and Slow

A free course on the topic 

Behavioural Scientist newsletter

Podcast = Hidden Brain or Freakonomics 


Related Headlines

SDN Chapters Call for SDGC19 Volunteers

Call for SDGC19 Volunteers

Want to take part in the most important event the service design community attends all year? We need you!

Continue reading
SDN Chapters El Concilio de Diseño - Un mecanismo escalable para evaluar la calidad de los proyectos

El Concilio de Diseño - Un mecanismo escalable para evaluar la calidad de los proyectos

Cuando el equipo de diseño de BBVA Bancomer empezó a crecer de forma acelerada, pasando de 6 a 120 diseñadores en el lapso de 2 años, nuestro mayor reto fue establecer y permear un mismo mindset de diseño. El cual debía encontrar el balance ideal entre establecer procesos y fomentar una libertad creativa.

Continue reading
SDN Chapters Service Design Award 2019 - 5 years of celebrating service design excellence!

Service Design Award 2019 - 5 years of celebrating service design excellence!

Service Design Award, founded by the Service Design Network in 2015, is the most prestigious award honouring service design excellence from around the world. This year we are celebrating our fifth anniversary and we are proud of our previous winners and finalists who helped us to stay true in our vision to make service design the new normal.

Continue reading
SDN Global News SDN Academy - Service Design Basics Workshop in Cologne

SDN Academy - Service Design Basics Workshop in Cologne

The latest SDN Academy Service Design Basics Workshop was intense, inspirational and packed with energy! Conducted from 6-7 April 2019, the workshop introduced participants to the world of service design, covered the fundamentals of the service design process, and provided them with the essential methods and tools to support their work in the practice.

Continue reading