Taxes

Defaults refer to what happens if a person makes no choice or goes with a pre-selected choice. The influence of defaults is a foundational component of behavioral economics. Perhaps the most famous example of defaults is the difference between opt-in and opt-out organ donation programs. While not universal, several studies have found that the rate of organ donation consent in a population seems to be influenced by the default (i.e., what happens if a person does not check a box or change the pre-selected preference on a form). Smart defaults do not only refer to one-off events, however. In the well-known Save More Tomorrow program, participants were not only included in a savings program by default, but the amount they saved was also changed over time automatically (again by default). Similarly, other behavior change programs have default settings that include at-home medication or food delivery, rules-based reminders on different platforms, etc.

A framing effect refers to changes in people's choices within a given set of options based on how the options are presented. This are typically associated with behavioral economics, as it violates utility theory's premise that people will choose according to a rational assessment of the outcome.The most common example of this is posing a question as a loss or a gain. In several instances, people have been found to choose differently based on whether a proposition is losing lives vs saving them, an X% of infection vs. a Y% chance of immunity, etc despite the options being mathetmatically identical between the two framings.

Social norms are shared expectations on how people within a certain group will or should behave. They are often considered as unwritten rules that govern behavior and tend to be very influential.Influencing behavior using social norms can take a variety of forms. For example, some studies aim to correct misunderstandings around descriptive norms (what people in a group actually do). One trial involving the UK Behavioural Insights Team increased tax compliance by emphasizing that the vast majority of people pay their taxes on time, which influenced non-compliers to become more like the majority. People generally do not like to deviate from the norm, which may explain the success of this tactic.Other approaches involve attempting to change social norms or create new social norms, which is substantially harder. One prominent example was the promotion of the ""designated driver"" (DDs) in the US during a period of high automobile fatalities. Public health officials influenced Hollywood producers to include the designated driver in film and television scenes, which caused viewers to: 1) likely believe the use of DDs was much more common than it actually was, and 2) likely consider using a DD was what they ""should"" do (i.e. the injunctive norm). Following the public health campaign, awareness and compliance with the DD protocol rose substantially, and auto fatalities dropped precipitously.

Moral suasion refers to appealing to a person's sense of morality or ethics in order to influence their behavior.In one example, the UK Behavioural Insights Team compared reminders to pay taxes. One letter featured a moralistic message ("Paying your taxes is the right thing to do") whereas another empahsized social norms ("9 out of 10 people pay their taxes on time"). The moral suasion message performed worse in this case.