Behavioural Insights Unit:
On the value of nudging
February 3, 2016
BIU Work Streams!
We work with ministries and agencies to design more
effective and efficient public services by incorporating our
best understandings of how people use those services!
Education!
Expert Advice!
!
!
introduce a behavioural
science perspective to
the OPS and raise
awareness of
opportunities to apply
behavioural science
methodologies!
provide program
specific insight from
the behavioural
sciences!
Design & Evaluation!
!
design service touch points
in light of existing
behavioural science
knowledge and evaluate
these designs using
randomized controlled trials
to generate new, Ontario
specific knowledge!
!
Our Value Proposition!
•  We offer a new tool in the government’s toolkit:
–  Legislation, regulation & taxation – shoving
–  Marketing, disclosure – shouting
–  Behavioural insights – nudging
•  This new tool offers:
–  Effective solutions that often cost nothing to test or
implement
–  An alternative to complex legislation and costly marketing
–  The ability to help citizens’ make sustainable decisions
without constraining their freedom
•  In addition, we conduct evidence-based evaluation
–  Using scientific methodology and statistical evaluation
Growing Global Adoption
Behavioural Insights Unit
Global Insights Initiative
Economic Model of
Decision Making
Information
In order to decide whether
•  to stay in school
•  to eat a healthy diet
•  to save for retirement
Incentives
But often, we don’t have the…
• 
• 
• 
• 
• 
time
memory
awareness
ability
or motivation to engage in a complex cost-benefit analysis
Instead we often make decisions automatically
by using mental shortcuts
Taxes
Fines
Behavioural Economics in 3 Points
First Law of Motion
Every object in a state
of motion tends to
remain in that state of
motion unless an
external force is applied
to it.
1.  Procrastination often prevents people from achieving their goals
2. Habit can prevent people from adapting to changing circumstances
3. Context surrounding a decision can influence the choices people make
Mental Shortcuts often Make use
of Contextual Information
Context Matters!
Basic nudge idea:
changing the context
surrounding behaivour
can influence that
behaviour above and
beyond incentives,
regulation, and
information.
This can provide
governments with new
tools to encourage
positive behaviour
7
change.
Randomized Controlled Trials!
(RCTs)!
1.  Evidence-based
decisions!
– 
Gold standard of the scientific
method!
2.  Efficient innovation!
–  Rather than trying one solution, you
can try multiple simultaneously!
3.  Lower risk and
lower cost!
–  Know whether something works with
a sample of the population before
rolling it out province wide!
Tax Collection
Behavioural Insight Unit’s
Eservice adoption
OPS EXAMPLES
Organ Donation
Standard Letter
Trial Letter
EmployerHealthTax
RequirementtoFile
EmployerHealthTax:XXXX
YourEmployerHealthTaxAnnualReturnIsOverdue!
Youmustfileimmediately.
IfyourEmployerHealthTaxReturnhasbeenfiled,pleasedisregardthis
noBce.
WehavenotreceivedyourEmployerHealthTaxAnnualReturn(s)for
thefollowingcalendaryear(s):
31-Dec-2013
Yourreturnwasdueonorbefore15-Mar-2014.Pleasecompleteand
fileyourreturnwithfullpaymentimmediately.Interestandpenalty
chargeswillapply.
Yourreturnmustbefiledimmediatelywithfullpaymentinorderto
preventfurtherinterestchargestoyouorreferraltotheCollecBons
Branch.Con$nuedfailuretofiletherequiredreturnisaserious
offence.Ifarrangementsarenotmadetocorrectthissitua$on,the
ministrymayfileanes$matedreturnincludingapplicablepenal$es
andinterestforeachperiodthatisindefault.
IfyouhaveanyquesBonsorrequireaddiBonalinformaBon,pleasevisit
ourwebsiteorcalltheMinistryofFinanceatthenumberlistedbelow.
Enquiries1866ONT-TAXSFAX1866888-3850Teletypewriter(TTY)1800
263-7776
1866668-8297
Internetontario.ca/finance
How
Where
When
EmployerHealthTax:XXXX
WehavenotreceivedyourEmployerHealthTax(EHT)AnnualReturn(s)
forthefollowingcalendaryear(s)
31-Dec-2013
Yourreturnwasdueonorbefore15-Mar-2014.
Youmustfileyourreturn(s)immediatelywithfullpaymenttoavoid
furtherinterestandpenaltycharges.
Ifyoufailtodeliveryourreturn(s)by2-May-2014,theMinistryof
FinancewillreferyoutocollecBons.ThiscouldhaveescalaLnglegal
consequencesasfailuretofileareturnisaseriousoffence.
Hereiswhatyouneedtodonowanddefinitelybefore2-May-2014:
1) Fileandpayyourreturn(s)infullimmediately:
a. BymailtoMinistryofFinance,33KingStreetWest,
POBox620,
Oshawa,OntarioL1H8E9
b. InpersonatselectedServiceOntariocentres,see
h_p://www.ontario.ca/findservices
c. Ifyoualreadyregisteredonline,logontoONTTAXS,ath_p://www.ontario.ca/taxservices
2) Keepacopyforyourrecords.
IfyouhavefiledyourEmployerHealthTaxreturn,pleasedisregardthis
noBce.
IfyouhaveanyquesBonsorrequireaddiBonalinformaBon,pleasevisit
ourwebsiteatontario.ca/financeorcalltheMinistryofFinanceat1866
668-8297.
Percent of Employers Filing
by Letter and Date
49.6%
48.3%
50.0%
44.4%
44.2%
40.0%
30.6%
30.0%
26.1%
27.4%
32.4%
20.0%
23.5%
17.7%
10.0%
42.7% of employers
filed within 2 months
of receiving
requirement-to-file
letters in 2013
17%
11.8%
Standard Letter
Experimental
Letter
2014
Standard Letter
Experimental
Letter
2015
Filed within one
month
Filed Before
Collections
If you build it…
Will they come?
•  Online government services save money
–  About $6.39 per transaction
–  6.5 million valtag transactions annually
•  Ontarians want online services
–  87% shop online
–  84% want government services online
•  Yet only 10.4% renewed online in 2013
–  In-person sticker renewals cost $35 million annually
Which Tool Works Best?
•  Not providing or charging extra for in-person service
likely unpopular
•  Multi-year, million dollar advertising campaigns have
produced only modest increase in online adoption
Online Licence Sticker Renewals
50%
Percent of All Transactions
Completed Online
40%
30%
20%
10%
0%
2011
2012
2013
2014
Standard
Renewal
Materials
(Control)
Intervention 1 – salient
information
Intervention 2 – multiple
motivations
Intervention 3 – loss aversion
Stickers Renewed Online by
Condition
14.6%
15%
13.3%
11.6%
10.3%
10%
5%
0%
Standard Notification
Materials
Intervention 1
Intervention 2
Intervention 3
Late Sticker Renewals (all
channels) by Condition
30%
29.6%
26.4%
25.8%
24.4%
25%
20%
15%
Standard Notification
Materials
Intervention 1
Intervention 2
Intervention 3
Shift to Online Results
Standard Form
Simplified Form
How would you feel if you or someone you love needed a transplant
and couldn’t get one? Please help save lives and register today.
21
Organ Donor Registration !
Results!
Behavioural Insights Unit
!
!
!
Julian House!
Research Scientist!
Communications Branch!
Treasury Board Secretariat!
416-326-2562!
[email protected]!