1 June 2014

German psychologist aims to debunk behavioural economics (a.k.a. the “nudge” approach)

Be the first to share

Daniel Kahneman, the ‘godfather’ of behavioural economics, has been challenged by rival psychologist Gerd Gigerenzer, director of the Centre for Cognition and Adaptive Behaviour at the Max Planck institute in Berlin, who claims that Kahneman presents ‘an unfairly negative view of the human mind’.

Gigerenzer’s book Risk Savvy: How to Make Good Decisions debunks the behavioural economics of Daniel Kahneman, and Cass Sunstein and Richard Thaler, authors of the bestselling book “Nudge”, who, along with the authors of Freakonomics, were once David Cameron’s pet thinkers.

Tim Adams reports on it all in the Observer.

“In an increasingly complex and specialised world, Gigerenzer preaches a gospel of greater simplicity. He suggests that the outcome of decisions of any complexity – a complexity of, say, trying to organise a successful picnic or greater – are impossible to accurately predict with any mathematical rational model, and therefore more usefully approached with a mixture of gut instinct and what he calls heuristics, the learned rules of thumb of any given situation. He believes, and he has some evidence to prove it, that such judgments prove sounder in practice than those based purely on probability.” […]

“Though Kahneman himself carefully limits its potential political application, his argument that we are irretrievably in thrall to our fallacies, in Gigernzer’s view, only strengthens the argument for such paternalism from government. Nudge theory becomes the more palatable expression of a deliberate wider manipulation. It makes us weaker and less questioning citizens.

Gigerenzer proposes an alternative solution. He believes, with education, the teaching of critical thinking about statistical probability, people can become more usefully ‘risk savvy'”

Related:
– Videos of Gerd Gigerenzer at TEDxZurich (2013) and TEDxNorrköping (2012)
– “Risk Savvy” book reviews in The Financial Times | The Economist | Times Higher Education
– An older, but in-depth review on the debate by Nick Dunbar

Be the first to share
19 January 2017
Social science must return to qualitative research to understand social and political shifts
Social science has become increasingly beholden to analysis derived from big data: large numerical sets analysed computationally, write Pamela Prickett and Elaine Howard Ecklund of Rice University. This, they say, "has brought us much insight …
19 January 2017
Don Norman on what Apple, Google and Tesla get wrong
Don Norman is a technological optimist. The author of The Design of Everyday Things and head of UC San Diego's Design Lab believes that artificial intelligence might only take the worst parts of our jobs, …
8 January 2017
The complexity of plastic bags
As societies face increasingly complex problems, design is emerging as the tool to solve some of Asia's biggest issues. Through field trips with designers skilled in human-centered design, the team behind Ethnographers' Field Guide to …
19 December 2016
Australia’s Digital Ethnography Research Centre on experiencing the digital in everyday life
The Digital Ethnography Research Centre (DERC), part of RMIT University, focuses on understanding a contemporary world where digital and mobile technologies are increasingly inextricable from the environments and relationships in which everyday life plays out. …
19 November 2016
A conversation with Dan Ariely about what shapes our motivations
A professor of psychology and behavioral economics at Duke University, Dan Ariely relentlessly examines our assumptions about ourselves—and finds they’re often totally misconstrued. We think, for example, that money is our main motivator in the …
11 November 2016
The cognitive psychologist’s view of UX design
Psychologist and cognitive scientist Dr. Susan Weinschenk explains how her science informs UX design. Weinschenk takes research and knowledge about the brain, the visual system, memory, and motivation and extrapolates ten UX design principles from …
31 October 2016
IKEA/Economist Group (EIU) study focuses on the new ‘American Dream’ today
Press release - September 21, 2016 Discovering the New American Dream, an Economist Intelligence Unit (EIU) report sponsored by IKEA US shows that the American Dream, which was once outlined by owning a home with a …
16 October 2016
Study says aggressive drivers see autonomous cars as easy prey
Aggressive drivers are looking forward to sharing the road with autonomous cars as they believe they can cut in front of them easily. This is how Peter Campbell summarised in the Financial Times one of …

We are an international experience design consultancy helping companies and organisations to innovate their products, services and processes by putting people and their experiences first.

12 January 2017
Experientia’s CITYOPT project awarded prestigious French award for its sustainable development design

Following the 2016 Smart Innovation Award at “FIMBACTE Trophées du Cadre de vie”, the CITYOPT project has once again been recognized, this time in the prestigious French design competition: “Observeur du Design 2017”, in the Service Design category. In June 2016, CITYOPT won the first stage of the Observeur du Design. Now the project has […]

1 December 2016
More on upcoming conference on design & sustainable innovation for smart cities

Last month Putting People First announced the upcoming conference on design & sustainable innovation for smart cities in Nice France. Meanwhile we are pleased to announce the full event agenda (see below). This event will feature professionals from leading research institutes and industry gathering to present key initiatives which combine Energy Efficiency and Service Design […]

29 October 2016
Upcoming conference on design & sustainable innovation for smart cities

Invitation to the International Conference on Design & Sustainable Innovation for SmartCities Nice (France) 8 December 2016 On the 8th December 2016, the CITYOPT project will host an international conference on Design and sustainable innovation for SmartCities, at the Centre Universitaire Méditerranéen, France. An open invitation to attend is offered to people and organisations who […]

28 October 2016
Experientia’s President, Michele Visciòla, panel judge for MacArthur Foundation’s “100&Change” competition

The 100&Change is an international competition and a landmark opportunity for thinkers and designers to tackle critical challenges affecting the world. Michele Visciòla will be one of the panel of expert judges who will select which project is worthy of the $100 million grant. 100&Change is the MacArthur Foundation competition – launched this year for […]

5 September 2016
Great engine, but the fuel seems poor. Discussing insight development in corporate marketing

The September issue of the Harvard Business Review (HBR) contains a lengthy essay, entitled Building an Insights Engine, on how Unilever has created the organizational capabilities to “transform data into insights about consumers’ motivations and to turn those insights into strategy.” The article was written by Frank van den Driest and Keith Weed of a […]

29 August 2016
Experientia discussing ethnography and patient-centricity at EPIC 2016

This week Experientia joins our colleagues and peers in Minneapolis at EPIC 2016, the premier international gathering on ethnography and design in industry. The theme for the conference this year is Pathmaking, emphasizing the power of ethnography to create transformative innovation, growth and strategic success for companies, industries and communities. On the second day of […]

See all articles