Change the question asked Can we change the default (what happens if no decision is made)? We have a strong tendency to go with the default or pre-set option, since it is easy to do so. Making an option the default (while providing an opt-out) makes it more likely to be adopted. Changes in defaults are generally best used when there are largely homogenous preferences and circumstances. Beware that default settings can signal recommendations by government, even if such recommendations are not suited to all people. Further, defaults can lead to a perceived reduction in the need to engage with a decision: e.g. a potential downside of mandatory super is that people may feel less need to engage in super planning because it is already done for them. Can we introduce a required choice or prompted choice? A required choice requires an individual to make a decision in order to continue with a given process or service (for example, most airlines force customers to say yes or no to travel insurance in order to book a ticket). A prompted choice merely asks that a choice be made. Required choices are generally more appropriate for high-stakes choices, when the highest level of consideration and engagement is most appropriate. Can we reduce the number of options available? Or presented at once? Choice overload can lead to procrastination, avoidance, dissatisfaction, reliance on imperfect heuristics, and potentially mistakes. Can we provide decision aids? When a choice is complicated, giving individuals access to tools or decision aids to facilitate the selection of the best option from a larger choice set can improve choice outcomes. For example, provide people with retirement income projection tools based on a given contribution rate to superannuation. Is framing a choice as a loss or a gain helpful? Loss aversion is the tendency to prefer avoiding losses to achieve equal-sized gains, relative to a reference point. In addition, people tend to be more risk-taking when they feel they have incurred or are about to incur losses. Sometimes just rewording a message can lead people to a different choice. Change the information being provided Can we provide new information? Sometimes information provision can be sufficient to influence behaviour. This is particularly the case when the information targets and corrects people’s false beliefs. Note
Change the question asked Can we change the default (what happens if no decision is made)? We have a strong tendency to go with the default or pre-set option, since it is easy to do so. Making an option the default (while providing an opt-out) makes it more likely to be adopted. Changes in defaults are generally best used when there are largely homogenous preferences and circumstances. Beware that default settings can signal recommendations by government, even if such recommendations are not suited to all people. Further, defaults can lead to a perceived reduction in the need to engage with a decision: e.g. a potential downside of mandatory super is that people may feel less need to engage in super planning because it is already done for them. Can we introduce a required choice or prompted choice? A required choice requires an individual to make a decision in order to continue with a given process or service (for example, most airlines force customers to say yes or no to travel insurance in order to book a ticket). A prompted choice merely asks that a choice be made. Required choices are generally more appropriate for high-stakes choices, when the highest level of consideration and engagement is most appropriate. Can we reduce the number of options available? Or presented at once? Choice overload can lead to procrastination, avoidance, dissatisfaction, reliance on imperfect heuristics, and potentially mistakes. Can we provide decision aids? When a choice is complicated, giving individuals access to tools or decision aids to facilitate the selection of the best option from a larger choice set can improve choice outcomes. For example, provide people with retirement income projection tools based on a given contribution rate to superannuation. Is framing a choice as a loss or a gain helpful? Loss aversion is the tendency to prefer avoiding losses to achieve equal-sized gains, relative to a reference point. In addition, people tend to be more risk-taking when they feel they have incurred or are about to incur losses. Sometimes just rewording a message can lead people to a different choice. Change the information being provided Can we provide new information? Sometimes information provision can be sufficient to influence behaviour. This is particularly the case when the information targets and corrects people’s false beliefs. Note
BETA-Guide-developing-behavioural-interventions-randomised-controlled-trials.docx