Category Archives: innovation

For inspiration, the story of airbnb

Joe Gebbia one of the founders of airbnb tells the story of his company.

Watch it.

PSFK CONFERENCE NYC 2011: Joe Gebbia from Piers Fawkes on Vimeo.

Nudging – good or evil? Brits worry about potential mind control, Swedes find it fun and useful

This week on the BBC’s Moral Maze, (listen here until December 4th) panelists discuss “nudges” and if and how governments should be using theories of behavioral economics to encourage people to perform in certain ways. A few of the panelists were quite alarmed that the British government was employing “behavioral architects” to craft policies that seemingly coerce the public to act ways that could benefit themselves and the society at large.

Because the British seem to support their nanny state, it is unclear to me why they view nudges as being the first misstep that sends civil society into an Orwellian dystopia. (Wouldn’t be the first.) Aren’t nudges just another way that the state can protect its inhabitants from making bad decisions? (Rather than scolding them.) In the program, a few panelists worried that the government would use nudges as a way to manipulate and control the choices that people made. What they failed to understand is that people still have choices that can be freely made.

Just because there is now a picture of a fly in the urinal, doesn’t mean that you have to aim for it.

Just because now organ donation is the default, doesn’t mean that you can’t opt out of it. It just requires that you actually read your driver’s license document before signing it, if you want to make sure that you check that extra box so that your organs are selfishly buried with you. (For something like changing the default, making a choice counter to the default might take a little more thinking on the part of the citizens, but the choice is still there.)

The nice thing about nudges is that they can be unobtrusive, innocuous aids to help us make better decisions. The key is that the decision is still there to be made.

While it is interesting to discuss the morality of governments practicing nudging its citizens and to what level that nudging should be made salient, I am rather more interested learn about nudges that have already been enacted in the real world.

A Volkswagen-branded initiative in Sweden sought to change people’s behavior for the better and have fun while doing so. Their site TheFunTheory.com showcases four great examples of how nudges in the real world can encourage people to perform pro-social actions, such as picking up litter in the park or driving the speed limit, or actions that benefit the individual directly, such as taking the stairs. In these examples, the consumers/citizens/performers are delighted and entertained by the options given.

While The Fun Theory demonstrations are probably too costly to be scaled, their success should encourage governments, companies, non-profits to create and execute  new nudges to encourage individuals to better themselves and their communities.

For additional reading, consult Thaler’s research, the popular book Nudge: Improving Decisions about Health, Wealth, and Happiness by Thaler and Sunstein, or social psychology research around framing and heuristics.

 

Cult of celebrity expands into education in Hong Kong

Whether it was Mrs. Lee who taught sixth grade or Ms. Page who teaches high school, growing up, we all have teachers who were celebrities within our schools.

Just as communities recognize teachers as local celebrities for their ability to inspire, coach, and help kids succeed, some of Hong Kong’s teachers and tutors have achieved a mainstream level of celebrity. An article by enoVate, describes how teachers have attained a level of fame similar to rock stars and actors. Their faces in ads on billboards and the sides of buildings

In a culture of (only) child prince/princesses, parents are seeking out the best for their progeny, including the best education. Celebrity teachers and tutors offer the promise of the most effective teaching practices, insider exam tips, study sessions that will enable students to excel over the other thousands of applicants vying for the same university spot.

While the expansion of the cult of celebrity is not necessarily a good thing, I’m happy that finally, someone is paying teachers what they are actually worth.

Mobile phone advertising nudges

In a recent article MediaPost wrote about Loopt’s foray into local mobile phone advertising. What I find more interesting about mobile marketing is the way that Loopt’s business customers are enticing consumers. Some businesses are using mobile coupons and marketing as nudges, to get people to visit during slow periods. In other words, they are rewarding certain consumer behaviors that can benefit their business. For instance, the article mentions that one coffee spot only punches mobile phone loyalty cards between 2pm and 5pm, which is their slowest period. While these nudges don’t necessarily improve a consumer’s decisions about health, wealth, and happiness, they do encourage and reward a specific behavior.

I could definitely use a mobile marketing message at lunch time from restaurants that sell salads and other healthy fares, or other spots that have inexpensive lunch time specials. Or perhaps, some mobile loyalty points cards that gives more points for selecting the soup and wrap and fewer points for selecting the hamburger and fries. In a bid to earn more healthy points,  I would also be selecting foods that were healthy.

Mobile marketing could be one of the most effective outlets to nudge people, as phones are willingly carried everyday, referenced constantly. I’m interested to see what other nudges enterprising businesses come up with.

Ogori Cafe: Applying game theory to cafe ordering

Plowing through my Google Reader, I came across PSFK‘s article on Ogori Cafe. A newly opened cafe in Kashiwa, Japan, Ogori Cafe is an interesting application of game theory to restaurant dining. Cafe patrons receive the order of the person in front of them and their order goes to the person who was in line behind them. In game theory, the question is, how do you maximize your gains, while minimizing or avoiding losses? In this scenario, the patron has not received their order (what the person in front of them ordered), by the time they order. Thus, they have to choose their level of altruism, before they have feedback about another’s decision.

It would be interesting to see how customers’ orders changed, if they received the order they would be consuming, before placing their order. Having been the beneficiary of ill-will, would they continue the sentiment or decide to be extra kind to the next person in line?