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Good by default. Using heuristic-triggering nudges to promote prosocial behaviour in economic decision-making

Titel: Good by default. Using heuristic-triggering nudges to promote prosocial behaviour in economic decision-making

Masterarbeit , 2017 , 74 Seiten , Note: 1.3

Autor:in: Estelle Zanga (Autor:in)

BWL - Allgemeines
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Zusammenfassung Leseprobe Details

Humans are generally perceived as intuitively selfish, particularly in their economic decision-making. Under the Dual-Process Framework (DPF), this view entails that prosocial behaviour requires reflective control over those natural inclinations towards self-interest. However, new lines of research explore the heuristic basis of prosocial actions and their potential use for policy-making. The goal of this thesis is to enquire into intuitive mechanisms which foster prosocial behaviour in economic decision-making and how to use them to promote altruism and cooperation through heuristic-triggering (“pure”) nudges. We found that while in some contexts prosocial choices can be economically rational, heuristic mechanisms also drive them and for some individuals, they do so to a higher extend than deliberative processes. Our literature review identified three main classes of heuristics that significantly drive prosocial behaviour: kin recognition, social and affect heuristics. Based on Intuitive Design principles, we developed a toolkit for heuristic-triggering nudges enabling choice architects to structure and describe choice options, as well as to address implementation issues, with the goal to make prosocial actions the most attractive alternative. One interesting highlight of our analysis is the differentiation of three master frames for evaluating prosocial nudges: increase in prosocial actions, ex-post satisfaction of decision-maker and social welfare outcome. Finally, we derived practical implications of our findings in social and environmental policy interventions.

Leseprobe


Table of Contents

1 Setting the Stage

1.1 Introduction

1.2 Relevant Definitions

2 Theoretical Framework

2.1 Decision – making under uncertainty

2.1.1 Rational Choice Theory

2.1.2 Bounded Rationality

2.1.3 Dual-process Theory

2.1.4 Heuristics and Decision Biases

2.2 Prosocial Behaviour

2.2.1 Social preferences

2.2.2 Altruism

2.2.3 Cooperation

2.3 Behavioural Economics and Policy Making

2.3.1 Incentives

2.3.2 Nudge Theory

3 Research Question and Methodology

3.1 Research Question

3.1.1 Formulation of Research Question

3.1.2 Hypotheses

3.1.3 Relevance of the topic

3.2 Methodology

4 Results

4.1 Link Between Prosocial Behaviour and Heuristics

4.1.1 Economic Rationality of Prosocial Behaviour

4.1.2 Heuristics Mechanisms Underlying Prosocial Behaviour

4.2 Use of heuristics to nudge prosocial behaviour

4.2.1 Structuring the choice

4.2.2 Describing the choice options

4.2.3 Addressing implementation issues

5 Conclusion

5.1 Key Findings

5.2 Organizational and practical implications

5.3 Discussion and future research

6 Appendix

6.1 Appendix I: Most common experimental economics games on social preferences

6.2 Appendix II: Summary of nudge tools

6.3 Appendix IV: Classification of relevant incentive theories

7 References

Research Objectives and Themes

The primary objective of this thesis is to investigate intuitive mechanisms that foster prosocial behavior within economic decision-making and to explore how these mechanisms can be leveraged through heuristic-triggering ("pure") nudges to promote altruism and cooperation.

  • The role of the Dual-Process Framework (DPF) in economic decision-making.
  • The identification of heuristic categories (kin recognition, social, and affect heuristics) that drive prosocial behavior.
  • The development of a practical toolkit for choice architects to structure and describe choice options to favor prosociality.
  • The evaluation of prosocial nudges through normative, gain, and hedonic frames.
  • Practical applications in policy-making, environmental, and organizational settings.

Excerpt from the Book

4.1.2 Heuristics Mechanisms Underlying Prosocial Behaviour

Several researchers support the idea that prosocial behaviour also proceeds heuristically, through automatic mechanisms (Rand, et al., 2014; Kahneman & Tversky, 2011; Gigerenzer, 2013; Carlson, Aknin, & Liotti, 2016). In other terms, intuition drives prosocial actions and for some individuals, it does so to a higher extend than deliberative processes. In Public Good Games (PGG) for instance, Wang and Chen found that prosocial intuition play an important role for prosocial decision-making (Wang & Chen, 2015). Using economic games, Rand et al. explored the cognitive basis of prosocial behaviour through the DPF, enquiring whether humans are predisposed to act selfishly or in cooperative manner. They argued that cooperation is intuitive and its heuristics are developed in daily life because it’s an advantageous behaviour (Rand, Greene, & Nowak, 2012). In social dilemmas, intuitive responses tend to be more cooperative than deliberate or reflective ones.

Findings from One-shot Prisoner’s Dilemma experiments showed that a substantial number of participants consistently engage in 50% cooperation, regardless of benefits-costs ratios. This surprising cooperative behaviour is not simply explained by standard models of social preferences but is guided by simple decision heuristics, rather than rational utility maximization (Capraro, Jordan, & Rand, 2014). Researchers in cognitive and neuroscience also provided neurobiological evidence of the heuristic foundation of prosocial behaviour (Carlson, Aknin, & Liotti, 2016). Furthermore, Zaki and Mitchell argue that prosocial actions do not always require active control from selfish impulses, but instead, represent a class of intuition in and for themselves (Zaki & Mitchell, 2013). For instance, Stutzer et al. (2011) found that reflection itself can be a barrier to donating blood.

Summary of Chapters

1 Setting the Stage: Provides an introduction to the thesis, defining key concepts like economic decision-making, rationality, and setting the scope of the research on prosocial behavior.

2 Theoretical Framework: Reviews relevant research on decision-making under uncertainty, the Dual-Process Framework, heuristics, and the definitions of altruism, cooperation, and nudge theory.

3 Research Question and Methodology: Outlines the research goal, states the two core hypotheses regarding heuristics and prosocial nudging, and explains the reliance on existing experimental literature.

4 Results: Details the literature findings, establishing links between prosocial behavior and heuristics, and presenting a toolkit for choice architects to design heuristic-triggering nudges.

5 Conclusion: Summarizes the key findings, discusses practical and organizational implications, and highlights the need for further research on the effectiveness of social nudges.

Keywords

economic decision-making, heuristics, social preferences, prosocial behaviour, altruism, cooperation, nudge, behavioural economics, dual-process framework, kin recognition, intuitive design, choice architecture, reciprocity, fairness, moral sentiments

Frequently Asked Questions

What is the core focus of this thesis?

This thesis examines how humans make prosocial decisions in economic contexts and whether mental shortcuts (heuristics) can be used to promote altruistic and cooperative behavior through nudging techniques.

What are the primary thematic fields covered?

The work integrates insights from behavioural economics, psychology, and cognitive science, focusing specifically on decision-making under uncertainty, social preferences, and the practical application of choice architecture.

What is the central research question?

The central question is: How can prosocial behaviour be nudged using heuristics in economic decision making?

Which scientific methods are utilized?

The research is based on an extensive literature review and synthesis of experimental evidence from behavioural economics, psychology, and social science experiments (e.g., Prisoner's Dilemma, Public Goods Games).

What does the main body address?

The main body establishes the theoretical basis for why prosocial behavior occurs heuristically, proposes a toolkit for designing "prosocial" nudges based on Intuitive Design, and discusses how to address individual differences and outcome valuation.

Which keywords characterize this work?

Key terms include economic decision-making, heuristics, prosocial behaviour, altruism, cooperation, nudge, and behavioural economics.

How do kin recognition and social heuristics specifically trigger prosocial behavior?

They act as proximate mechanisms that make individuals more likely to help others by using cues such as perceived similarity or mere exposure, often leading to automatic prosocial responses without the need for conscious, deliberate cost-benefit analysis.

What is the role of "framing" in this study?

Framing is identified as a critical tool for choice architects to make the most prosocial option more salient, thereby triggering heuristic processes that guide the individual toward socially beneficial decisions.

What are the three master frames for evaluating prosocial nudges?

The three frames are the normative frame ("act appropriately"), the gain frame ("increase one's resources"), and the hedonic frame ("feel better").

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Details

Titel
Good by default. Using heuristic-triggering nudges to promote prosocial behaviour in economic decision-making
Hochschule
HHL Leipzig Graduate School of Management
Note
1.3
Autor
Estelle Zanga (Autor:in)
Erscheinungsjahr
2017
Seiten
74
Katalognummer
V536440
ISBN (eBook)
9783346133182
ISBN (Buch)
9783346133199
Sprache
Englisch
Schlagworte
Behavioural Economics Behavioral Economics Biases Cognitive Biases Heuristics Decision-making Economics Management
Produktsicherheit
GRIN Publishing GmbH
Arbeit zitieren
Estelle Zanga (Autor:in), 2017, Good by default. Using heuristic-triggering nudges to promote prosocial behaviour in economic decision-making, München, GRIN Verlag, https://www.grin.com/document/536440
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