Happy Nudges - Behavioural Economics and Happiness

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Transcript of Happy Nudges - Behavioural Economics and Happiness

HOW TO BE HAPPY

DR. PAULMARSDENPSYCHOLOGIST

@marsattacks

Behavioural Economics and “Happy Nudges”

3 Weeks

Smiling selfies

Photos of things that make you happy

Sending photos of things you think will make others happy

+22% happier

Smartphone happiness

Source: Chen, Y., Mark, G., & Ali, S. (2016). Promoting positive affect through smartphone photography. Psychology of Well-Being, 6(1), 1-16.

Positive Psychology

Science and practice of improving wellbeing

–Baruch Spinoza

“Everyone wants continuous and genuine happiness.”

What is this thing called happiness?

What is this thing called happiness?

Being happy in life Being happy with life

Being happy in lifeFrequency of positive affect

Active

AttentiveDetermined

Enthusiastic Excited

Inspired Interested

Proud Strong

Alert

Infrequency of negative affect

Afraid

DistressedGuilty

Hostile Irritable

Jittery Nervous

Scared Upset

Ashamed

Watson, D., Clark, L. A., & Tellegen, A. (1988). Development and validation of brief measures of positive and negative affect: the PANAS scales. Journal of personality and social psychology,

Being happy with life

You Your Ideal Life

Overall satisfaction with life Memory, Experience, Anticipation

Few regrets

Regrets

Hedonia and Eudaimonia

Being happy in life Being happy with life Meaning/Purpose

BE & Happiness?Positive choice architecture?

• Positive nudge towards outcomes associated with positive feelings

• Positive nudge towards outcomes associated with ideals

• Positive reframing of past, present and future

What are the things that make people happy?

Genes 50% Activities

40%

Circumstances 10%

What are the things that make people happy?

It’s the little things “happy nudges”

Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.

Sometimes big life events have small effects on happiness

Sometimes big life events have small effects on happiness

Sometimes big life events have small effects on happiness

Sometimes big life events have small effects on happiness

Sometimes big life events have small effects on happiness

Happy surprises and set-points

Although we may respond to unexpected positive events with short term surges in happiness, we return to our happiness set point or baseline (hedonic treadmill)

Happy surprise!

• Happiness happens when unexpected positive events happen, but we have a natural happiness set-point to which we return

“Happy nudges”• Little behavioural changes can make big differences to happiness

Expressing gratitude Cultivating optimismAvoiding

overthinking and social comparison

Practising acts of kindness

Nurturing relationships

Developing strategies for coping Learning to forgive Doing more activities

that truly engage you

Savoring life’s joys Committing to your goals

Practising religion and spirituality

Taking care of your body (eating well/

exercising)Lyubomirsky, S. (2008). The how of happiness: A scientific approach to getting the life you want. Penguin.

“Happy nudges”• “Positive psychology” uses simple clinically validated behavioural techniques

to improve happiness

Every evening as you clean your teeth, think of three good things that happened to you that day, and ask yourself why they happened

“Happy nudges”

Autonomy Our universal need

for autonomy is about self-determination;

experiencing freedom, choice and

control.

Relatedness Our universal need

for relatedness is about giving and

experiencing attachment, security

and love.

Competence Our universal need for competence is

about experiencing mastery

achievement, and success.

• The ARC of Happiness (self-determination theory) - improving people’s sense of autonomy, relatedness or competence, improves happiness

Happy nudges

Autonomy vs. Helplessness – do we feel in control or do we feel helpless to

circumstance and systems?

Relatedness vs. Isolation – do we

feel cared for by others, or do we

feel left behind, alone and isolated?

Competence vs. Frustration – do we

experience mastery and achievement, or are our goals put out

of reach?

• President Trump’s campaign focused on the ARC of happiness

Happy nudges

• Activate Autonomy - How might a choice promote a sense of autonomy, freedom or control?

• Reward Relatedness - How might a choicehelp people care for and feel cared for by others?

• Cultivate Competence - How might a choice help people feel that more competent and proficient?

Promoting a sense of Autonomy (Stitch Fix, Nike)

Promoting a sense of Relatedness (CuteCircuit hugshirt, Nike/Lululemon communities)

Promoting a sense of Competence (Nike, Under Armour)

Customer Experience is Worthless

Memories of Customer Experience are Priceless

customer experience

we only remember the peak moment and the end moment

peak

end

we only remember the peak moment and the end moment

peak

end

remembered experience

Thinking, Fast and Slow

• The part you may have missed

• Happiness - it’s complicated…

• Happy experiences vs happy memories

• ‘Experiencing Self ’ vs ‘Remembering Self ’

PAIN

IN

TEN

SIT

Y10

9

8

7

6

5

4

3

2

1

0

PATIENT A

PAIN

IN

TEN

SIT

Y

10

9

8

7

6

5

4

3

2

1

0

5 10 15 20

TIME (MINUTES)

PATIENT B

TIME (MINUTES)

5 10

Experienced more pain, remembered less pain

The Peak/End Rule

18 Positive Design Interventions to promote happiness

Brands with happiest users grow 2x category average

Brands with 5+ years sustained growth

have 2x happier users

Source Bain/Reichheld, 2011

The care of human life and happiness… is the only legitimate object of good government

The care of human life and happiness… is the only legitimate object of good behavioural economics

Thomas Jefferson 1809

–Jeremy Bentham

How can we become agents of positive change and put Behavioural Economics to the service of human

happiness?

“The greatest happiness for the greatest number.”