Energy usage: A view from behavioral

economics

D. Purves

D. Purves

D. Purves

ILLUSIONS AS A METAPHOR

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Organ donations?

Johnson & Goldstein (2003)

Opt-in

Check the box below if you want to participate in the organ donor program

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people don’t checks the box -- and don’t join

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Opt-out

Check the box below if you don’t want to participate in the organ donor program

people don’t checks the box -- and don’t join

Opt-in

Check the box below if you want to participate in the organ donor program

Opt-out

Check the box below if you don’t want to participate in the organ donor program

people don’t checks the box -- and don’t join

people don’t checks the box -- and join

Opt-inCheck the box below if you want to

participate in the organ donor program

Opt-out Check the box below if you don’t want to participate in the organ donor program

people don’t checks the box -- and don’t join

people don’t checks the box -- and join

Answer the following:

Answer the following:

Please write 3 reasons why you love your significant other

Please write 10 reasons why you love your significant other

Please write 3 reasons to buy a BMW

Please write 10 reasons to buy a BMW

Answer the following:

Please write 3 reasons why you love your significant other

Please write 10 reasons why you love your significant other

Please write 3 reasons to buy a BMW

Please write 10 reasons to buy a BMW

Asymmetric dominance

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Advice from the Delany sisters ..

1 immediately

10 w/ 10sec delay

Ainslie & Herrnstein 1974

Delayed gratification & commitment

1 immediately✔

10 w/ 10sec delay

Ainslie & Herrnstein 1974

Delayed gratification & commitment

10 w/ 10sec delay

Ainslie & Herrnstein 1974

1 immediately

Delayed gratification & commitment

10 w/ 10sec delay

Ainslie & Herrnstein 1974

1 immediately✔

Delayed gratification & commitment

10 w/ 10sec delay

Ainslie & Herrnstein 1974

1 immediately

No temptation button

Delayed gratification & commitment

10 w/ 10sec delay

Ainslie & Herrnstein 1974

1 immediately

No temptation button✔

Delayed gratification & commitment

Self control problems

Self control Mechanisms

Clocky

One step further ....

2 - markets

The psychology of money

Standard Economics ...

What a piece of work is a man! how noble in reason!how infinite in faculty! in form and moving how

express and admirable! in action how like an angel!in apprehension how like a god!

Will Shakespeare (Act II,scene 2, of Hamlet)

Standard Economics ...

What a piece of work is a man! how noble in reason!how infinite in faculty! in form and moving how

express and admirable! in action how like an angel!in apprehension how like a god!

Will Shakespeare (Act II,scene 2, of Hamlet)

Behavioral

IT IS ALL ABOUT .....

IT IS ALL ABOUT .....

FREE LUNCHES !!!

VS.

VS.

Thanks