Question

In: Economics

follow Nudges theory, how do we nudge people to use their personal cup when they go...

follow Nudges theory, how do we nudge people to use their personal cup when they go to a coffee shop?

Solutions

Expert Solution

  • Humans often need encouragement and motivations to do the things which would benefit society at large through sustainable development. Nudges theory is a concept in behavioral science and behavioral economics which urges for positive reinforcement and incidental suggestions as for the way to impact decision making and behavior of individuals and groups.
  • A nudge influences an individual's particular choice or behavior, by modifying the environment so that automatic cognitive processes bring bout a change to favor the desired result. Nudges are important as humans are not completely rational beings and people will often do something that is not in their own self-interest, even when they are conscious that their behavior is not in their finest interest.
  • For example - Nudges theory was implemented by the UK through their scheme that each home will be provided with two garbage bins, one for recyclable material and another for regular waste. The recyclable bin was the bigger one, hope to limit space for general taste to increase recycling the waste garbage. This way encouraged cleanliness and sustainable development.

how do we nudge people to use their personal cup when they go to a coffee shop? - Taking an example of a famous beverages shop called "Starbucks", which gives $0.10 discount for customers who bring their own mugs for coffee. Indirectly and psychologically this offer encourages the customer to bring their own coffee mugs in order to get a discount and for saving money. This decision is a positive action towards waste reduction for both environment and expenditures of the company on mugs.


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