2.1: Behavioral Insights

Apply behavioral insights to improve results and lower costs in direct operations.

Other Information:

Human decision making is central to many public policy interventions. Major advances have been made in research regarding the influences that drive people's decisions and choices, and these new insights can significantly improve policy outcomes at a lower cost.

Stakeholder(s):

• Fiscal Service: Example: Research has revealed the power of"social norms" on behavior, meaning the influence of what others do on our decisions. Building on this insight, the Fiscal Service at the Treasury Department has recently updated the text and format of letters sent to individuals with delinquent debt to the federal government. The new letters, which will be tested against the older version using a randomized control trial, use simplified language, personalization, and a reference to social norms (i.e., the fact that 94% of outstanding debts are paid off on time and that the recipient is in the fraction that has not yet paid) to motivate a higher rate of debt repayment.


• Treasury Department

Indicator(s):

Indicator:1

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