behavioural insights unit: on the value of nudging...behavioural economics in 3 points first law of...
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Behavioural Insights Unit: On the value of nudging
February 3, 2016
BIU Work Streams!
We work with ministries and agencies to design more effective and efficient public services by incorporating our best understandings of how people use those services!
Education!!
introduce a behavioural science perspective to the OPS and raise awareness of opportunities to apply behavioural science methodologies!
Design & Evaluation!!
design service touch points in light of existing behavioural science knowledge and evaluate these designs using randomized controlled trials to generate new, Ontario specific knowledge!
Expert Advice!!
provide program specific insight from the behavioural sciences!
!Our Value Proposition ! • We offer a new tool in the government’s toolkit:
– Legislation, regulation & taxation – shoving – Marketing, disclosure – shouting
– Behavioural insights – nudging
• This new tool offers: – Effective solutions that often cost nothing to test or
implement – An alternative to complex legislation and costly marketing – The ability to help citizens’ make sustainable decisions
without constraining their freedom
• In addition, we conduct evidence-based evaluation – Using scientific methodology and statistical evaluation
Global Insights Initiative
Growing Global Adoption
Behavioural Insights Unit
Economic Model of Decision Making In order to decide whether • to stay in school • to eat a healthy diet • to save for retirement
But often, we don’t have the… • time • memory • awareness • ability • or motivation to engage in a complex cost-benefit analysis Instead we often make decisions automatically by using mental shortcuts
Taxes Fines
Incentives
Information
Behavioural Economics in 3 Points
First Law of Motion Every object in a state of motion tends to remain in that state of motion unless an external force is applied to it.
1. Procrastination often prevents people from achieving their goals
3. Context surrounding a decision can influence the choices people make
2. Habit can prevent people from adapting to changing circumstances
Mental Shortcuts often Make use of Contextual Information
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Context Matters!
Basic nudge idea: changing the context surrounding behaivour can influence that behaviour above and beyond incentives, regulation, and information. This can provide governments with new tools to encourage positive behaviour change.
Randomized Controlled Trials!(RCTs)!
1. Evidence-based decisions!
– Gold standard of the scientific method!
2. Efficient innovation!– Rather than trying one solution, you
can try multiple simultaneously!
3. Lower risk and lower cost!– Know whether something works with
a sample of the population before rolling it out province wide!
OPS EXAMPLES Behavioural Insight Unit’s
Tax Collection Eservice adoption Organ Donation
When
Where
How
EmployerHealthTaxRequirementtoFile
EmployerHealthTax:XXXX
IfyourEmployerHealthTaxReturnhasbeenfiled,pleasedisregardthisnoBce.
WehavenotreceivedyourEmployerHealthTaxAnnualReturn(s)forthefollowingcalendaryear(s):
31-Dec-2013
Yourreturnwasdueonorbefore15-Mar-2014.Pleasecompleteandfileyourreturnwithfullpaymentimmediately.Interestandpenaltychargeswillapply.
YourreturnmustbefiledimmediatelywithfullpaymentinordertopreventfurtherinterestchargestoyouorreferraltotheCollecBonsBranch.Con$nuedfailuretofiletherequiredreturnisaseriousoffence.Ifarrangementsarenotmadetocorrectthissitua$on,theministrymayfileanes$matedreturnincludingapplicablepenal$esandinterestforeachperiodthatisindefault.
IfyouhaveanyquesBonsorrequireaddiBonalinformaBon,pleasevisitourwebsiteorcalltheMinistryofFinanceatthenumberlistedbelow.
Enquiries1866ONT-TAXSFAX1866888-3850Teletypewriter(TTY)1800263-77761866668-8297 Internetontario.ca/finance
YourEmployerHealthTaxAnnualReturnIsOverdue!
Youmustfileimmediately.EmployerHealthTax:XXXXWehavenotreceivedyourEmployerHealthTax(EHT)AnnualReturn(s)forthefollowingcalendaryear(s)31-Dec-2013Yourreturnwasdueonorbefore15-Mar-2014.Youmustfileyourreturn(s)immediatelywithfullpaymenttoavoidfurtherinterestandpenaltycharges.Ifyoufailtodeliveryourreturn(s)by2-May-2014,theMinistryofFinancewillreferyoutocollecBons.ThiscouldhaveescalaLnglegalconsequencesasfailuretofileareturnisaseriousoffence.Hereiswhatyouneedtodonowanddefinitelybefore2-May-2014:
1) Fileandpayyourreturn(s)infullimmediately:a. BymailtoMinistryofFinance,33KingStreetWest,POBox620,Oshawa,OntarioL1H8E9b. InpersonatselectedServiceOntariocentres,seeh_p://www.ontario.ca/findservicesc. Ifyoualreadyregisteredonline,logontoONT-TAXS,ath_p://www.ontario.ca/taxservices
2) Keepacopyforyourrecords.
IfyouhavefiledyourEmployerHealthTaxreturn,pleasedisregardthisnoBce.IfyouhaveanyquesBonsorrequireaddiBonalinformaBon,pleasevisitourwebsiteatontario.ca/financeorcalltheMinistryofFinanceat1866668-8297.
Standard Letter Trial Letter
10.0%
20.0%
30.0%
40.0%
50.0%
Standard Letter Experimental Letter
Standard Letter Experimental Letter
2014 2015
Filed within one month
Filed Before Collections
30.6%
Percent of Employers Filing by Letter and Date
42.7% of employers filed within 2 months of receiving requirement-to-file letters in 2013
44.2% 48.3% 49.6%
44.4%
17%
11.8%
32.4%
17.7%
27.4%
26.1%
23.5%
If you build it… Will they come? • Online government services save money
– About $6.39 per transaction – 6.5 million valtag transactions annually
• Ontarians want online services – 87% shop online – 84% want government services online
• Yet only 10.4% renewed online in 2013 – In-person sticker renewals cost $35 million annually
Which Tool Works Best? • Not providing or charging extra for in-person service
likely unpopular • Multi-year, million dollar advertising campaigns have
produced only modest increase in online adoption
0%
10%
20%
30%
40%
50%
2011 2012 2013
Per
cent
of
All
Tran
sact
ions
C
ompl
eted
Onl
ine
Online Licence Sticker Renewals
2014
Standard Renewal Materials (Control)
Intervention 1 – salient information
Intervention 2 – multiple motivations
Intervention 3 – loss aversion
Stickers Renewed Online by Condition
0%
5%
10%
15%
Standard Notification Materials
Intervention 1 Intervention 2 Intervention 3
10.3%
11.6%
14.6% 13.3%
Late Sticker Renewals (all channels) by Condition
15%
20%
25%
30%
Standard Notification Materials
Intervention 1 Intervention 2 Intervention 3
29.6%
25.8% 26.4%
24.4%
Shift to Online Results
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Simplified Form
Standard Form
How would you feel if you or someone you love needed a transplant and couldn’t get one? Please help save lives and register today.
Organ Donor Registration !Results!
Behavioural Insights Unit !!Julian House!Research Scientist!Communications Branch!Treasury Board [email protected]!!