This thesis is an investigation of how subjects behave in an individual binary choice decision task with the option to purchase or observe for free additional information before reaching a decision. In part 1 of this thesis, an investigative study is conducted with the intent to sharpen the view to literature concerning corresponding psychology and economics experiments designed to test decision tasks that involve purchasing and observing information from an imperfect message prior to taking a terminal action choice. This investigative study identifies areas of research that warrant further investigation as well as provides enhancements for execution in the subsequent experiment conducted in Part 2 & 3 of this thesis. In Part 2 & 3, I conduct an experiment to test how subjects behave in an individual binary choice decision task with the option to purchase or observe for free additional information before reaching a final decision. I find that subjects’ behaviour over time converges toward optimal decisions prior to observing an imperfect information signal. However, when subjects observe an imperfect information signal prior to their terminal choice there is greater deviation from optimal behaviour. I find in addition to behaviour that is reflective of a risk-neutral BEU maximizer, status quo bias, over-weighing the informational value of the message received and past statistically independent outcomes influencing future choices. The subjects’ willingness to pay (WTP) to use the additional information gathered from an imperfect message service when making a final decision was on average less than the risk neutral BEU willingness to pay benchmark. Moreover, as the informative value of the message increased, causing the BEU valuation to increase, subjects under-estimated the value of the message signal to a greater degree. Although risk attitudes may have influenced the subjects’ WTP decisions, it does not account for the increased conservative WTP behaviour when information became more valuable. Additionally, the findings from this study suggest that individuals adopt different decision rules depending on both personal attributes (i.e. skillset, gender, experience) and on the context and environment in which the decision task is conducted. / SSHRC grant: Social Sciences and Humanities Research Council via Dr. Bram Cadsby Professor Department of Economics, University of Guelph

Abstract Modern life has increasingly become intertwined with technology, and recent years have witnessed a growth in technologies that support people in, for instance, leading healthier and more sustainable lifestyles. At the centre of this growth has been persuasive systems design, which has been shown to have a positive effect on individuals’ behaviour and their use of systems. This dissertation consists of five studies, encompassing a literature review, two quantitative studies with a total of 227 respondents, and two constructive studies that address the central research question of the dissertation: How can integrating judgment and decision-making processes and persuasive software design patterns enhance the development of behaviour change support systems? The primary theoretical framework for the research is the Persuasive Systems Design model. This is a model that outlines the key requirements for developing persuasive systems, consisting of the theoretical underpinnings, persuasion context analysis, and four feature categories. In recent years, improving the design of persuasive systems to better achieve their intended objectives has been an important topic. This dissertation, in addition to examining the role of persuasive software features in influencing behaviour, also integrates behavioural economics and software design patterns into the design of persuasive systems. Additionally, the interplay between the categories and other constructs such as perceived competence is investigated through statistical analyses. Overall, results reveal that persuasive system features have an impact on the efficacy of behaviour change support systems. Additionally, integrating behavioural economics concepts that explain the reasons why individuals deviate from expected behaviour and software design patterns can help improve the development of persuasive systems and further enhance their efficacy. / Tiivistelmä Teknologia on yhä tiukemmin osa nykyelämää. Viime vuosina on tapahtunut kasvua ja kehitystä teknologioissa, jotka tukevat ihmisiä esimerkiksi elämään terveellisemmin ja ympäristöä säästäen. Tämän kasvun keskiössä on ollut vakuuttavien järjestelmien suunnittelu, jonka on osoitettu vaikuttavan positiivisesti sekä ihmisten käyttäytymiseen että järjestelmien käyttöön. Tämä väitöskirja käsittää viisi tutkimusta, sisältäen kirjallisuuskatsauksen, kaksi kvantitatiivista tutkimusta yhteensä 227 vastaajalla, ja kaksi konstruktiivista tutkimusta, jotka yhdessä vastaavat väitöskirjan päätutkimuskysymykseen: Kuinka arviointi- ja päätöksentekoprosessit sekä vakuuttavien järjestelmien suunnittelumallit yhdistämällä voidaan edistää käyttäytymisen muutosta tukevien järjestelmien kehitystä? Ensisijainen teoreettinen viitekehys tutkimukselle on vakuuttavien järjestelmien suunnittelumalli (Persuasive Systems Design model). Kyseinen malli määrittää keskeiset vaatimukset vakuuttavien järjestelmien kehittämiselle. Tärkeänä aiheena on ollut vakuuttavien järjestelmien suunnittelemisen edistäminen, jotta niillä voitaisiin paremmin saavuttaa aiotut päämäärät. Vakuuttavien järjestelmien ohjelmisto-ominaisuuksien vaikutuksesta käyttäytymiseen tutkimisen lisäksi väitöskirja yhdistää myös behavioristisen taloustieteen ja ohjelmistosuunnittelumallit vakuuttavien järjestelmien suunnitteluun. Lisäksi kategorioiden ja muiden käsitteiden, kuten koetun pätevyyden, vuorovaikutusta on tutkittu tilastollisen analyysin keinoin. Kaiken kaikkiaan tulokset paljastavat vakuuttavien järjestelmien ominaisuuksilla olevan vaikutusta käyttäytymisen muutosta tukevien järjestelmien vaikuttavuuteen. Lisäksi integroimalla behavioristisen taloustieteen konsepteja, jotka selittävät syitä, joiden vuoksi yksilöt käyttäytyvät odotetusta poikkeavasti, ohjelmistosuunnittelumalleihin, voidaan auttaa edistämään vakuuttavien järjestelmien kehittämistä ja parantaa niiden vaikuttavuutta.

This thesis addresses three themes relating to climate change. The first is which types of fossil fuel to leave in the ground when they can differ in both their extraction cost and emissions rate. The analysis shows that without resource constraints there will always be use of at least one fossil fuel in the steady-state. With exhaustion constraints, any fossil fuel that has a lower extraction cost than the marginal cost of the backstop will be extracted in finite time regardless of the emissions rate. The only environmental consideration is the timing of extraction rather than leaving fossil fuel stock in the ground forever. The second theme is how altruistic concern of individuals for the well-being of others influences the socially optimal consumption levels and optimal emissions tax in a global context. If individuals have altruistic concern but believe that their consumption is negligible, they will not change their behaviour. However, non-cooperative governments maximising domestic welfare will internalise some of the damage inflicted on other countries depending on the level of altruistic concern individuals have and the cooperative optimum also changes as altruism leads individuals to effectively experience damage in other countries as well as the direct damage to them. Still, for behaviour to change, individuals need to make their decisions in a different way. The third chapter develops a new theory of moral behaviour whereby individuals balance the cost of not acting in their own self-interest against the hypothetical moral value of adopting a Kantian form of behaviour, asking what would happen if everyone else acted in the same way as they did. If individuals behave this way, then altruism matters and it may induce individuals to cut back their consumption. But nevertheless the optimal environmental tax is exactly the same as the standard Pigovian tax.

The goal of the PhD thesis is to investigate the role of behavioural economics considerations for the performance of conservation auctions. The findings of the three scientific articles suggest that behavioural economics considerations like social (distributional) preferences and reference-dependent preferences may affect the attractiveness and economic performance of conservation auctions, respectively. The results of the first and second articles are based on laboratory experiments conducted with university students, in Germany. The third article implements a field experiment to measure farmers’ preferences over Payments for Ecosystem Services (PES) allocation mechanisms and the role of fairness therein, in the context of agrobiodiversity loss in Benin.

Konsumtionsbeteende är idag en viktig undersökningspunkt för att med säkerhet kunna genomföra implementeringar av nya policys inom konsumentpolitiken. Både klassiska nationalekonomiska teorier och beteendeekonomiska teorier används för att beskriva och förutsäga dessa beteenden, men det saknas undersökningar på deras faktiska kopplingar till olika typer av prissättning. Denna uppsats har gjort ett försök till att undersöka vilken påverkan en förändring i pris genom en förändring i paketstorlek har på efterfrågan. Den har även försökt ge en analys till om de förändringar som noteras är kopplade till beteendeekonomi eller klassisk nationalekonomisk teori. Med hjälp av en vanlig tidstrendsanalys tillsammans med en interrupted-time-series-analysis har försäljningstrenderna för försäljning i KG för två substituerande produkter skapats och jämförts. Dessa fastställer att förändringens påverkan framförallt stämmer överens med teorier gällande beteendeekonomi men att sambandet mellan en förändring i försäljningsnivå och en förändring i paketstorlek inte är säkerställt. Analyserna gjorda i denna studie blir därför inte fastställda och möjligtvis otillräckliga för att besvara den fråga som ställts. Jag som författare vill därför uppmana till att flera utvecklande studier inom ämnet bör utföras för att säkerställa möjliga resultat. / Consumer behaviour is today an important aspect of making quality decisions regarding policies on the consumer market. Both classical economical models and behavioural economical models are used to describe and predict these kinds of behaviours. Although todays studies on their connections to different methods of pricing are lacking. This paper tries to investigate what kind of impact a change in price by changing the size of the good has on demand. It also tries to produce an analysis on if this impact is connected with bevioural or classical economic theories. Based on a classical time-trend analysis together with an interrupted-time-series-analysis different trends for sales in KG regarding two substitutional products have been created. These determine that the effects on demand are most likely connected to behavioural economics but that the effects aren’t statistically significant. The analysis done in this paper therefore cannot be statistically determined and indicates that further studies on the subject need to be done to answer these questions with more certainty.

This study examines the claim that individuals misinterpret the mean of a dataset (displayed as a scatterplot) more when the convex hull of the dataset is less representative of the data. In addition, this study also tests whether outliers in the data can predict the magnitude of error that individuals make in interpreting the mean of the dataset. Lastly, the study investigates whether individuals’ interpretations are predicted better by the mean of the convex hull than by the full dataset’s mean. The method used to conduct these investigations is through a survey, followed by several linear regression analyses. Applications of this study include improving the communication of data in economic policy and business contexts, along with broader applications in extending models that heavily rely on agents’ interpretations of information: especially bounded rationality and social norm-based models. The results show that convex hull unrepresentativeness correlates positively with error in mean interpretation; however, that the convex hull mean is not predictive of the interpretations’ direction. Overall, the study contributes to the field of visual information interpretation by investigating the effect of data structure on its interpretation – an unexplored area of research. This is done while initiating the concretization of bounded rationality in economics, by exploring the idea that individuals perceive a general shape of the information presented to them rather than a detailed, full picture. This can lead to misinterpretations whenever the general shape (convex hull) is not representative of the dataset.

La microéconomie conventionnelle présente le concept de rationalité de manière univoque et étroite comme maximisation de l'utilité espérée. On sait les critiques qui ont été adressées à ce concept tant du point de vue de l'économie comportementale que de celui de la sociologie. Notre objectif est de proposer une lecture de certaines de ces critiques afin de montrer que, pour l'essentiel, elles mettent en évidence la diversité des modes de rationalité. Le problème est, dès lors, de savoir si le constat de cette diversité conduit nécessairement à la récusation du modèle standard. Cette thèse s'inscrit dans la double perspective de la théorie du choix rationnel et de la théorie des jeux. À partir des critiques de l'économie comportementale, nous soutenons que le principe de maximisation constitue un mode de raisonnement local et évaluable au regard du contexte d'action. Mais une telle régionalisation implique une profonde révision de la théorie des jeux standard. La récusation de l'équilibre général, fondé sur le présupposé de la maximisation de l'utilité espérée, comme modèle univoque appelle un nouveau type de formalisation. En ce sens, nous montrons que la modélisation multi-agents permet de penser, de manière contrefactuelle, des interactions entre agents économiques rationnels et situés. Cette méthode nous autorise ainsi à élaborer des scénarios rationalisants qui dessinent des mondes possibles sans trancher entre ces mondes. / Standard microeconomics displays the concept of rationality as the maximisation of expected utility i.e. in a narrow and unequivocal sense. The criticisms against this concept made by behavioural economics or sociology are well known. I aim at providing an analysis of some of them in order to emphasise the fact that they mainly highlight the diversity of reasoning modes. But the issue is to know whether the diversity of reasoning modes necessarily leads to reject the standard model. My intention falls into two fields : the theory of Rational Choice and the Game Theory. From the point of view of behavioural economics, I assume that the maximisation is nothing more than a local reasoning mode that can be assessed in relation to the context of action. But this assumption implies correcting the standard Game Theory as well. The fact that the general equilibrium, based on the maximisation of expected utility, cannot be used anymore as an unique model calls a new kind of formalisation. So, I point out that agent-based modelling allows us to conceive, in a counterfactual way, interactions between rational economic agents in their context. Therefore, in this respect, rational patterns of actions and interactions design possible worlds without having to choose between them.

Le changement des comportements individuels s'est récemment imposé comme un objectif majeur pour l'action publique, qui mobilise dans cette optique de nouveaux savoirs de gouvernement : les sciences comportementales. Ces savoirs sont employés de manière explicite et croissante dans la politique énergétique du Japon pour réduire la consommation d’énergie des ménages, dans un contexte marqué par l’accident nucléaire de Fukushima et la libéralisation des marchés de l’énergie. Cette thèse examine les facteurs explicatifs et les modalités concrètes de cette transformation significative dans un domaine jusque-là dominé par une approche techno-économique prêtant peu attention aux comportements. Notre analyse associe des perspectives théoriques et méthodologiques issues de la sociologie de l'action publique et des études sur les transferts de politiques publiques pour retracer la genèse et la mise en œuvre de deux expérimentations : celle des réseaux électriques « intelligents » dans les Smart Communities et celle des nudges et des Home Energy Reports de l’entreprise étasunienne Opower. La conduite d’environ quatre-vingt entretiens semi-directifs et l’examen de nombreuses sources écrites ont mis en évidence la place centrale des circulations transnationales dans l’élaboration et la conduite de ces programmes et plus généralement de la politique énergétique de l’archipel.Nous défendons la thèse que la mobilisation des sciences comportementales dans la politique énergétique japonaise résulte d’une multiplicité de facteurs qui questionne l’opposition entre des changements de nature soit endogène soit exogène, et la distinction entre facteurs domestiques et facteurs extranationaux. Le recours à ces savoirs de gouvernement s’explique en effet par la capacité d’un petit groupe d’acteurs programmatiques japonais à introduire dans la politique énergétique des sciences et des instruments originaires de l’étranger, en réponse à des enjeux spécifiques au Japon. Notre analyse microsociologique des stratégies de ces acteurs invite à une endogénéisation de l’explication du changement intégrant les facteurs exogènes et les dynamiques extranationales. La mobilisation des sciences comportementales dans la politique nippone résulte indissociablement de l’essor de ces savoirs dans la recherche et l’action publique aux États-Unis et en Europe, des stratégies d’acteurs transnationaux, étasuniens et japonais, et de la prégnance des enjeux climatiques et énergétiques sur l’archipel. Nous suggérons par ailleurs que les États-Unis sont au cœur de la circulation des sciences comportementales dans le domaine de l’énergie, et que le recours à ces savoirs dans l’action publique s’explique par, outre leur succès académique, leur dimension « pratique » et « consensuelle ». / In recent years, changing individual behaviours has become a key issue for public policy, which has been mobilising new bodies of knowledge, namely behavioural sciences. These are explicitly and increasingly used in Japan’s energy policy in order to lower household energy consumption, in the context of both the Fukushima nuclear disaster and the liberalisation of the energy markets. My dissertation investigates the explanatory factors and the implementation of this significant change in a policy domain which was so far marked by a techno-economic approach paying little attention to behavioural issues. Drawing on theoretical and methodological perspectives from public policy analysis and policy transfer studies, I analyse the genesis and the implementation of two large-scale programs: first, the smart grid social experiments named Smart Communities; second, the Opower’s Home Energy Reports pilot study. Building on about eighty semi-structured interviews and on a wide variety of written sources, I emphasise the major role played by transnational circulations in the design and the implementation of these programs, and more broadly in Japan’s energy policy.I argue that the mobilisation of behavioural sciences in Japan’s energy policy results from manifolds factors which question the opposition between the endogenous and exogenous nature of policy change, as well as the distinction between domestic and extranational factors. Indeed, the use of this body of knowledge can be explained by the strategies of a few stakeholders who achieved to introduce new policy ideas and tools coming from abroad, in response to issues faced by the Japanese Government. Through a micro-sociological analysis of their strategies, I suggest to endogenize the explanation of policy change while integrating exogenous factors and extranational dynamics. The mobilisation of behavioural sciences in Japan’s energy policy results inseparably from the expansion of this body of knowledge in academia and in public policy in the US and in Europe; from the strategies of transnational, Japanese and American stakeholders; and from the stringency of climate and energy problems in Japan. The US plays a central role in the transnational circulation of behavioural sciences in the energy field, which can be explained by the “practical” and “consensual” dimension of these sciences.

This thesis presents an attempt to find evidence of the ostrich effect and the disposition effect, as well as individual differences in self-assessed financial knowledge and its effect on these biases. The ostrich effect refers to the tendency to deliberately avoid information that might be negative, by "sticking your head in the sand". The disposition effect refers to people who hold on to losing assets too long while selling winning ones too early. The two effects were examined through a natural experiment which emerged from the stock market crash that occurred February 5th, 2018. The data was collected during an internship at Länsförsäkringar AB and originates from the usage of Länsförsäkringar's application Sparnavigatorn, where customers can manage their savings. The customers login activity and number of placed sales orders were observed. The data material is unique, and the study enabled a unique presentation of real life behaviour within a financial context and an analysis of whether individual differences affect behaviour. To our knowledge, neither the ostrich effect nor the disposition effect have earlier been examined through a large scale natural experiment. The results show no significant indication of the ostrich effect, but rather a relatively constant login activity not affected by the stock market crash. Furthermore, they show a contradictory reaction to what the disposition effect suggests, meaning the respondents place more sales orders during the stock market fall than at the time before and after. The results imply that further research needs to be done to either reject or confirm the existence of the ostrich effect and the disposition effect.

Since its beginnings, and more clearly since the mid 1800, Economics has been resting on the assumption that economic agents make rational decisions, maximizing their utility or well-being according to their own preferences and interests. The economic order resulting from that plurality of rational decisions is regarded as an efficient and Pareto-optimum one. Several authors have questioned the validity of those assumptions, and this has entailed a gradual transformation of the assumptions. This paper discusses the problems faced by the idea of a fully rational Homo economicus, the adjustments and defensive measures adopted by various tendencies within Economics to overcome those problems and counter various related theoretical and methodological criticisms. The paper also discusses more recent conceptions of economic reality that are at variance with the traditional view, especially those linked to behavioural, institutional and evolutionary Economics. / Desde sus inicios, y más claramente desde mediados del siglo XIX, la Economía se ha basado en el supuesto de que los agentes económicos toman decisiones racionales, maximizando su utilidad o bienestar de acuerdo a sus propias preferencias e intereses. El orden económico resultante de esa pluralidad de decisiones es considerado óptimo o eficiente. Diversos autores han cuestionado la validez de estos supuestos y ello ha motivado una gradual transformación de esos mismos supuestos. En este artículo se examinan los problemas que enfrenta la noción de un Homo economicus completamente racional, las correcciones y medidas defensivas adoptadas por distintas tendencias dentro del análisis económico a fin de resolver esos problemas y contrarrestar críticas teóricas y metodológicas, y el desarrollo reciente de algunas concepciones de la realidad económica que se apartan de aquella concepción tradicional, en especial las vinculadas a la economía conductual, a la economía institucional y a la economía evolucionaria.