Sep 3, 2015
We probably don’t need to tell you, savvy reader, that behavioral science is fascinating. The insights on human behavior that have come from the last few decades of research are not only profound and compelling, but can also delight. Take loss aversion. First demonstrated by Daniel Kahneman and Amos Tversky, this principle says we dislike … Read more.
Jul 8, 2015
For the 45.3 million Americans who struggle to cover basic expenses, living in poverty is costly in terms of time, money, and cognition. Recent research by two of ideas42’s cofounders gives a name to the cognitive costs of poverty: a bandwidth tax, levied by the experience of scarcity. They find that lacking a key resource, … Read more.
Jun 16, 2015
Most car owners know that regular oil changes keep their cars running smoothly. Every few months, they visit their local dealerships, service stations or Jiffy Lubes and drive off 15 minutes later with the maintenance complete. But what if places like Jiffy Lube didn’t provide direct services? What if instead they hosted one-hour informational seminars … Read more.
Jun 11, 2015 by Eldar Shafir
Like many of us, I’m lucky enough to be able to manage my daily life while devoting just a sliver of my mind to looking after my personal finances. But for lower-income American households, navigating continuously challenging financial situations takes up a significant portion of their time, attention, and cognitive resources. Since we are all … Read more.
Jun 2, 2015
At ideas42 we do a lot of work applying behavioral science to challenges in higher education. Obtaining a university education is an incredibly strong predictor of individual earnings and economic mobility. But, unfortunately, the barriers to completing a degree are growing, with ballooning costs and student debt stifling economic growth and opportunity. This growing crisis … Read more.
Mar 30, 2015
Imagine you’ve been stuck in a meeting that ran into the lunch hour and you’re hungry—really hungry. You’ll focus on your hunger, craving whatever is closest and finding it tough to stick to long-term nutritional goals like maintaining low cholesterol. A very hungry version of you will also be more easily deterred by any short-term … Read more.
Nov 7, 2014 by ideas42
45.3 million: The number of Americans living in poverty in 2013. $500 billion: The estimated cost of poverty in the United States each year, including public expenditures and lost earnings. In response to these startling statistics, ideas42 recently launched the Poverty Interrupted initiative, a radical venture aiming to use insights from behavioral science to help … Read more.
Oct 6, 2014 by ideas42
ideas42 Joins with USAID and CGAP to Improve Financial Management for Microentrepreneurs in Developing Countries Project will scale-up pilots applying behavioral economics to create more customer-centric financial services Non-profit behavioral design firm ideas42 has been awarded over $1 million by USAID and CGAP to scale up an innovative new tool to help microentrepreneurs in developing countries … Read more.
Sep 17, 2014
It’s easy to agree that poverty is a problem, but explaining its causes and prescribing solutions is a far more difficult and complex task. What if children born into poverty could become as likely to succeed as their wealthier peers? What if intergenerational poverty were not an unavoidable and enduring evil, but entirely tractable? These … Read more.
Sep 5, 2014
Approximately 70 million American adults are considered unbanked or underbanked, and are forced to manage their money through costly alternative financial services that operate outside of the traditional banking system. These services, such as check-cashers and payday loans, impose large fees that often accumulate over time, which can trap consumers in cyclical and deepening debt. An alarming … Read more.