Behavioural Economics

Since seeing Rory Sutherland talk last week, (here) I've become somewhat obsessed with behavioural economics and choice architecture. The thinking behind behavioural economics argues that the human animal is hard-wired to make errors when it comes to decision-making, and therefore people need a little "nudge" to make decisions that are in their own best interests. This is where choice architecture comes into play. Rory Sutherland is championing this as the change that advertising agencies need to embrace in order to add real value to an agencies role in their clients future, and therefore in advertising agencies future as a whole. It's a refreshing take on the message we've become accumstomed to hearing- adapt or die. Instead of championing digital or viral or any other media as the saviour of advertising it takes a look at what really matters, people. People don't change, technology always will. Behavioural economics is a real science that investigates our mentality and our likelihood to change/adapt/make decision. I've come across some very interesting blogs and articles I think are worth sharing. Campaign, gives a good synopsis of Rory's thoughts on why advertising needs behavioural economics. Nudge blog also expands on his thinking. NPR.org gives great examples of how behavioural economics and choice architecture can change behaviours and mindsets. And it might be worth mentioning that the Obama admistration has been evoking the power of behavioural economics in both its admistration as well in the election campaign. 'Time' reports on "How obama is using the science of change".