Behavior Change and Economic Incentives

The speaker discusses the gap between human potential and actual behavior, emphasizing that providing information alone is insufficient for behavior change. Using a rocket analogy, he explains the importance of reducing friction and increasing motivation. Two case studies illustrate these concepts: one on switching to generic medication and another on motivating savings in Kibera, Kenya. The coin experiment highlights the importance of making economic activities visible. The talk concludes with a call to action to address the behavior gap through environmental changes.

What is the main topic the speaker wants to address after discussing facial hair?

• Facial symmetry

• The importance of grooming

• Social science and human potential

• The history of beards

Why does the speaker believe that simply providing information is not effective in changing behavior?

• People forget the information quickly

• Information is often incorrect

• Information is too complex

• People do not act on the information

What does the speaker suggest is necessary to change behavior effectively?

• Providing more information

• Changing the environment

• Increasing penalties

• Offering rewards

What analogy does the speaker use to explain behavior change?

• Cooking a meal

• Building a house

• Driving a car

• Sending a rocket to space

In the pharmacy case study, what was the main reason people did not switch to generic medication?

• They did not trust generics

• They disliked returning letters

• They were unaware of the benefits

• They preferred branded medication

What was the illegal suggestion made to encourage switching to generics?

• Sending frequent reminders

• Providing free samples

• Switching automatically unless a letter is returned

• Offering a cash reward

What was the most effective method in encouraging savings in the Kibera study?

• Messages from children

• Financial incentives

• Text reminders

• A coin with numbers

What surprising result was found regarding messages from children in the Kibera study?

• They were ineffective

• They were as effective as financial incentives

• They were less effective than expected

• They caused confusion

What does the speaker identify as a key factor in making economic activities like savings visible?

• Providing physical tokens

• Creating ceremonies

• Using technology

• Offering discounts

What is the speaker's final message about closing the gap between potential and current behavior?

• It is impossible to close the gap

• We can make significant improvements

• The gap will always widen

• Information is the key to closing the gap