๐Ÿ’Ž Describing loss aversion in 1759 (Adam Smith)

Pain […] is, in almost all cases, a more pungent sensation than the opposite and corresponding pleasure. The one almost always depresses us much more below the ordinary, or what may be called the natural state of our happiness, than the other ever raises us above it.
(Smith, 1759)

Excerpt from: Behavioral Economics (The Basics) by Philip Corr and Anke Plagnol

๐Ÿ’Ž The BASIC model (a simple process for identifying what nudges should be applied to a particular challenge)

A way of identifying behavioral problems that may be amenable to a nudge intervention is given by the Danish organization iNudgeyou, which use the BASIC model to design interventions. The acronym stands for: B = behavioral mapping: collecting data to define the problem – the what phase. A = analysis: why people are currently behaving as they are โ€“ the why phase. S = solution mapping: this is the scientific and systematic process of making suggestions – the how phase. I = interventions – this is the testing of possible nudge solutions before full implementation – this is the test phase. Once a nudge intervention has been selected, there is then C = Continuation: solutions may fail due to poor implementation or lack of maintenance, so a process of on-going monitoring of the success of behavior change is needed, as well as an evaluation of possible unforeseen side-effects – the results stage. An approach such as BASIC is needed whenever nudging is being considered – jumping from general knowledge to specific behavioral problems is fraught with problems.

Excerpt from: Behavioral Economics: The Basics by Philip Corr and Anke Plagnol