Consumers often fail to consider the alternative ways to spend money when making decisions to buy consumer goods, this is called opportunity cost neglect. In this experimental study, our objective was to replicate the previous research of Frederick et al. (2009) showing that reminding individuals about the opportunity cost affects their decisions. Furthermore, we also wanted to extend the knowledge about this behavior by investigating whether individuals neglect the opportunity cost when making financial decisions or decisions about time allocation. In addition, we hypothesized that individuals who conduct mental budgeting (i.e., they categorize-, budget-, and track expenditures to mental accounts), are more likely to neglect the opportunity cost since they do not treat money as fungible. In an online experiment, we measured how being reminded about the opportunity cost would affect the probability of an individual buying a cheap and an expensive consumer goods, of investing money, and of watching a movie. Furthermore, we measured how being reminded about the opportunity cost affects the decision of those who conduct mental budgeting and those who do not. Our results showed that individuals neglect opportunity cost of the expensive consumer good and time (p=0.1). We found a positive relation between conducting mental budgeting and opportunity cost neglect for the expensive consumer good (p=0.1) and the deposit account (p=0.05), but no such effect in the other three scenarios. Our results imply that, due to opportunity cost neglect of time, people might be even further from optimal decision making than previously suggested since it extends to decisions about time allocation, and perhaps to investments; and people who conduct mental budgeting sometimes spend less/save more when reminded about the opportunity cost.

Poverty Microeconomics: The Peruvian caseThe microeconomic analysis of poverty in Peru shows the following results. First, poverty is mainly explained by the income of the poor which is not only low, but also highly unstable. Second, poverty is related to the poor’s bad decision making due to incomplete information, intertemporal inconsistency and or lack of self control, mainly in the saving, borrowing, preventive health, fertility and education decisions. Third, poverty depends of the external constraints the poor face in some markets where they are marginalized from automatic decision making, in health insurance, pensions, vaccines, water and sanitation. Fourth, the poor face more and bigger risks than the rest of the population. They have higher probability to fall in poverty traps than higher income groups, because their income is low and unstable and they lack thefinancial and institutional backing to buffer income fluctuations. Fifth, to combat poverty we have to modulate the poor’s decision through information diffusion and the use of mechanisms of behavioral economics such as framing and nudging decisions in health, education, insurance, pensions, etc. to induce good decision making and avoid procrastination. To improve the quality of education, health, nutrition services and social services we have to empower the users as well as strengthen the accountability of the providers. Private sector participation in the provision of social services should be promoted. The promotion of formal firms in the regions of extreme poverty, such as mining firms and related activities has shown proven results as a mechanism of rising and stabilizing the incomes of the poor. / El análisis microeconómico de la pobreza en Perú muestra los siguientes resultados. Primero, la pobreza está principalmente determinada porque los ingresos de los pobres son no solo bajos sino altamente volátiles. Segundo, la pobreza se explica porque la decisiones importantes que toman los pobres, muchas veces, presentan información incompleta, inconsistencia intertemporal y falta de autocontrol, principalmente en las áreas de ahorro y crédito, de salud preventiva, fertilidad y de educación. Tercero, la pobreza depende de las restricciones externas que los pobres enfrentan en algunos mercados en los que participan donde, por lo general, están marginados de la decisiones automáticas y fáciles, las que están al alcance de los sectores de mayores ingresos, como, por ejemplo, el acceso automático a seguros de salud, pensiones de vejez e invalidez, vacunas, agua y desagüe. Cuarto, los pobres están expuestos a más y mayores riesgos que el resto de la población.Ellos tienen mayor probabilidad de caer en trampas de pobreza crónica que las personas de mayores ingresos, porque sus ingreso son bajos y muy volátiles y porque carecen de facilidades financieras e institucionales que las puedan amortiguar sus fluctuaciones de ingreso. Quinto, para combatir la pobreza se requiere, por un lado, actuar tratando de modular las decisiones de los pobres a través difusión de información y de mecanismos prestados de la economía del comportamiento, como el mecanismo de encuadre, para evitar la procrastinación e inducir a «buenas» decisiones en la salud, nutrición, educación, aseguramiento, pensiones, etcétera y, por otro, requiere realizar la enorme tarea de mejorar la calidad y cantidad de la oferta de los servicios de salud, educación, nutrición y programas sociales con la vigilancia de los propios interesados para rendimiento de cuentas y la participación del sector privado, que ha demostrado ser más efectivo que el sector público en el suministro de los servicios sociales. La generación de empleos formales estables en las regiones donde los pobres viven ha probado ser la manera más segura de aumentar y estabilizar sus ingresos.

Orientador: Prof. Dr. Ramon Vicente Garcia Fernandez / Dissertação (mestrado) - Universidade Federal do ABC, Programa de Pós-Graduação em Ciências Humanas e Sociais, 2016. / Este trabalho tem como objetivo abordar a Economia Comportamental, suas origens, conceitos-base e desdobramentos para a área de políticas públicas, com uma visão voltada para o Brasil. Tendo se consolidado como uma subdisciplina da economia, a economia comportamental se vale da interdisciplinaridade entre psicologia e economia, sendo ainda necessário abordar alguns termos básicos desta última. É o caso da utilidade esperada e o preceito do Homem Racional (Homo economicus), dos quais a economia comportamental é crítica. Estes pontos, por sua vez, fazem conexão com os estudos de Daniel Kahneman e Amos Tversky, pilares da economia comportamental, mas também de outros, como Richard Thaler e Cass Sunstein, que contribuíram amplamente para a aplicação da economia comportamental em termos prescritivos, formulando os conceitos de nudge e paternalismo libertário. Este movimento será abordado no decorrer do trabalho, buscando, ao final, relacioná-lo com aspectos de políticas brasileiras, como é o caso do Programa Bolsa Família (PBF). / This study aims to outline Behavioral Economics, its origins, main concepts and expansion towards public policy, while contemplating a Brazilian perspective. Consolidated as a field in Economics, Behavioral Economics is based on the interdisciplinarity between Psychology and Economics, which makes it necessary to approach some basic terms of the latter. Such is the case of expected utility and the principle of rationality of economic agents (Homo economicus), which is criticized by behavioral economists. These points in turn are connected to the studies of Daniel Kahneman and Amos Tversky, pillars to behavioral economics, but also others, such as those of Richard Thaler and Cass Sunstein, who have largely contributed to the application of behavioral economics in prescriptive terms, mproposing the concepts of nudge and libertarian paternalism. This movement is going to be approached as this study follows, aiming to relate aspects of Brazilian Policies in the end, such as the case of the Bolsa Família program.

abstract: The Internet and climate change are two forces that are poised to both cause and enable changes in how we provide our energy infrastructure. The Internet has catalyzed enormous changes across many sectors by shifting the feedback and organizational structure of systems towards more decentralized users. Today’s energy systems require colossal shifts toward a more sustainable future. However, energy systems face enormous socio-technical lock-in and, thus far, have been largely unaffected by these destabilizing forces. More distributed information offers not only the ability to craft new markets, but to accelerate learning processes that respond to emerging user or prosumer centered design needs. This may include values and needs such as local reliability, transparency and accountability, integration into the built environment, and reduction of local pollution challenges. The same institutions (rules, norms and strategies) that dominated with the hierarchical infrastructure system of the twentieth century are unlikely to be good fit if a more distributed infrastructure increases in dominance. As information is produced at more distributed points, it is more difficult to coordinate and manage as an interconnected system. This research examines several aspects of these, historically dominant, infrastructure provisioning strategies to understand the implications of managing more distributed information. The first chapter experimentally examines information search and sharing strategies under different information protection rules. The second and third chapters focus on strategies to model and compare distributed energy production effects on shared electricity grid infrastructure. Finally, the fourth chapter dives into the literature of co-production, and explores connections between concepts in co-production and modularity (an engineering approach to information encapsulation) using the distributed energy resource regulations for San Diego, CA. Each of these sections highlights different aspects of how information rules offer a design space to enable a more adaptive, innovative and sustainable energy system that can more easily react to the shocks of the twenty-first century. / Dissertation/Thesis / Doctoral Dissertation Sustainability 2018

Traditional economic theory postulates that people are rational. This implies that people make decisions to maximize their utility functions and to do this, that they have fully and correctly evaluated their preferences and limitations. Behavioral economics recognizes that this is not always true, that sometimes information is incomplete. This article is examines some of the effects of behavioral economics (which come largely from cognitive psychology) in decision-making by investors in the stock exchanges. / La teoría económica tradicional postula que las personas son racionales. Esto implica que las personas toman decisiones para maximizar sus funciones de utilidad, y que para hacer esto han evaluado de forma completa y correcta sus preferencias y limitaciones. La economía del comportamiento reconoce que esto no es siempre verdad; que a veces no existe suficiente información. En este artículo, examino algunos de los efectos de la economía del comportamiento (que vienen en gran parte de la psicología cognitiva) en la toma de decisiones por los inversionistas en las bolsas de valores.

Submitted by Liliane Ferreira (ljuvencia30@gmail.com) on 2018-06-13T12:07:09Z No. of bitstreams: 2 Dissertação - Wesdra Xavier de Jesus - 2018.pdf: 2921100 bytes, checksum: 1110b4feef51462320eddc056496aca2 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Approved for entry into archive by Luciana Ferreira (lucgeral@gmail.com) on 2018-06-14T11:00:04Z (GMT) No. of bitstreams: 2 Dissertação - Wesdra Xavier de Jesus - 2018.pdf: 2921100 bytes, checksum: 1110b4feef51462320eddc056496aca2 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) / Made available in DSpace on 2018-06-14T11:00:04Z (GMT). No. of bitstreams: 2 Dissertação - Wesdra Xavier de Jesus - 2018.pdf: 2921100 bytes, checksum: 1110b4feef51462320eddc056496aca2 (MD5) license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Previous issue date: 2018-06-07 / This study brings theoretical levers of Behavioral Economics applied to the public sector. The Federal University of Goiás, faced with its expansion in recent years, driven by growth programs, faced with the need to adjust its budgetary reality to the frank expansion of its funding, among them, electric energy that is treated in this research. The institution made use of tools of the Behavioral Economics with the use of nudges in order to seek to circumvent resource allocation needs beyond and behavioral changes of its population for saving of electric energy, being the analysis of this action the objective of the research. The methodology used was to search among the Consumer Units randomly, within some established basic prerequisites, those that served as the basis for comparative mathematical calculations related to assessing the efficiency, effectiveness and effectiveness of the action. The results showed that within what was established by the action, among the Consumer Units tested, the results were within the expected by the action. The intervention proposal was the recommendation of the use of a manual for insertion of nudges, besides proposing other forms of nudge use, and it is suggested to use virtual banners on the institution's internet pages / Este estudo traz alavancas teóricas da Economia Comportamental aplicada ao setor público. A Universidade Federal de Goiás ante sua expansão dos últimos anos, impulsionadas por programas de crescimento, viu-se diante da necessidade de adequar sua realidade orçamentária a franca expansão de seu custeamento, dentre eles, energia elétrica que é tratado nesta pesquisa. A instituição fez uso de ferramentas da Economia Comportamental com uso de nudges afim de procurar contornar necessidades de alocação de recursos além e mudanças comportamentais de sua população para economia de energia elétrica, sendo, a análise desta ação o objetivo da pesquisa. A metodologia utilizada foi buscar entre as Unidades Consumidoras de forma aleatória, dentro de alguns pré-requisitos básicos estabelecidos, aquelas que serviram de base para cálculos matemáticos comparativos afins de aferir a eficiência, efetividade e eficácia da ação. Os resultados mostraram que dentro do que fora estabelecido pela ação, dentre as Unidades Consumidoras testadas, os resultados foram dentro do esperado pela ação. A proposta de intervenção foi recomendação do uso de manual para inserção de nudges além de propor outras formas de uso de nudges, sendo sugerido uso de banners virtuais nas páginas de internet da instituição.

Implementing behavioral insights into policy making goes along well with widespread effort for increased efficiency. From the public budget administrator point of view, this efficiency is crucial since it directly affects the current state of the budget. The theoretical part of this thesis consists of description of the most important parts of behavioral economics that can be used during the creation and setting of public policies. It also consists of brief description of current behavioral insights teams that are already using the insights representing more realistic behavior and decision making of individuals. In the analytical part of this thesis, I provide methodology of experiment evaluation as well as result extrapolation facets and risks. Those experiments usually take place before any reasonable extension is made. I also provide financial analysis of several experiments, should they be extended to larger group of individuals. In the last chapter of the analytical part, I discuss the possibilities of implementation of behavioral economics in the Czech Republic. Based on the calculations I ran, even a small change of the environment where people make decisions can significantly improve the results of the intervention, all that with minimal costs. It is however important to point out that not all behavioral insights inspirations end with success. Application of behavioral insights into policy making has got a great potential when it comes to the Czech Republic, as I show Using two examples from Health care and taxes revenues.

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Today, organizations are facing rising costs caused by increased employee sick - leave. A way to motivate employees to choose a healthier lifestyle is for the employer to offer wellness incentives. However, not too many employees are taking advantage of the incentives. According to the Transtheoretical Model of Health Behavior Change (TTM) , people are at different stages in their behavior change process. By knowing their personal obstacles to change, organizations can use nudge management and wellness incentives to help their employees to choose a healthier lifestyle. In order to get some answers, we conducted qualitative interviews at the Swedish Migration Agency. The result of our research showed seven main obstacles, and in this thesis we have explored dif erent nudges organizations can use to promote health and to lower sick - leave.

Cette thèse explore l’impact des technologies de l'information et de la communication (TIC) sur le comportement des employés. Alors que la théorie néoclassique de la croissance considère les TIC comme un outil utilisé dans le processus de production, nous nous sommes basé sur une théorie qui stipule que les technologies ont deux aspects différents. Les technologies de la communication centralisent la prise de décision tandis que les technologies de l'information déplacent la prise de décision au niveau de l'employé. Nous avons abordé les questions du meilleur type de technologie pour l’amélioration de la performance des employés, des coûts engendrés par l'utilisation de ce type de technologies et de l’impact de la surveillance informatique dans la réduction de ces coûts. Nous avons utilisé la méthode expérimentale pour répondre à ces questions. Nos résultats montrent que les employés préfèrent utiliser les technologies de l'information et ceux qui les utilisent sont plus productifs que les autres. Nous trouvons également que l’environnement de travail et les technologies qui poussent la prise de décision au niveau de l'employé pourraient engendrer des coûts importants pour l’entreprise. Cependant, la surveillance informatique est efficace pour réduire ces coûts mais son effet diminue au fil du temps. Nos résultats montrent que les employés les plus productifs sont ceux qui ont passé le plus de temps sur internet. Donner aux employés les informations constantes et détaillées (sur leur performance) produites par les technologies pourrait être une façon efficace de les sensibiliser sur l’ampleur de la surveillance informatique afin de les rendre plus performants. / This dissertation explores the impact of the use of Information and Communication Technologies (ICT) on employees’ behaviors. While the neoclassical growth theory considers ICT as an input used in the production process, we relied on a literature in the organizational economic field which states that technologies have two different key aspects. Information technologies push down the decision making at the employee level while Communication technologies centralize the decision making. We addressed the issue of the more efficient technologies for workers’ performance, the costs generated by using the most efficient type of technologies and how the technology-based monitoring may be useful to reduce those costs. We used the experimental methodology since the collection of individuals and team's production is hard with survey data. Our results show that employees prefer information technologies and those who use it are more productive than others. We also show that work organization and technologies which push down the decision making at the employee level could entail some substantial costs for the firm. Indeed, employees are more willing to engage on time wasting activities in order to influence the principal’s decision when they can participate to the decision making process. However IT monitoring is quite successful at reducing those costs. Technology monitoring implies a disciplining effect at the beginning when the sanction is available but this effect lessens over time. Our results show that employees are more productive when they spend more time on internet. Giving constant heightened feedbacks provided by ICT to employees about their productivity should be the better way to sensitize them about the extent of technology monitoring in order to increase their performance.