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Choiceology with Katy Milkman

The Big Impact of Small Changes

Choiceology with Katy Milkman

Charles Schwab

Behavioral Economics, Society & Culture, Social Sciences, Decision Making, Charles Schwab, Business, Science, Investing, Dan Heath, Katy Milkman

4.81.4K Ratings

🗓️ 26 February 2018

⏱️ 27 minutes

🧾️ Download transcript

Summary

You don’t make decisions in a vacuum. Context matters, perhaps more than you think. On this episode of Choiceology with Dan Heath, we explore the subtle, sometimes hidden structures that influence your decisions. You’ll see how small changes in the way choices are presented can have a huge impact on everything from vandalism to traffic congestion to retirement savings. Tara Austin of Ogilvy Change tells the dramatic story of how she and her team worked to reduce street crime in a London neighborhood after a devastating riot. It was a surprisingly simple project that had a measurable impact. You can see images from the project in this BBC News article. You’ll also hear about an experiment we ran on a busy intersection in an attempt to reduce collisions between bicycles and pedestrians—using nothing but a roll of duct tape. And behavioral design expert Sille Krukow explains how choice architecture can channel our inherent laziness to help us make better decisions. After listening, you can read our bonus article "Nudge Yourself" to learn even more about how to turn smart decisions into easier ones. Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.

Transcript

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0:00.0

I'm Dan Heath and this is Choiceology.

0:11.0

Has there ever been any close calls because somebody wasn't paying attention?

0:14.0

Yeah actually a co-worker just gotten a collision the other day from here.

0:17.0

With another bike because they were both trying to get on, but sharing with pedestrians no fun either.

0:22.0

We're on the street in a typical North American city at a spot where cars and bikes and pedestrians converge and things don't always go smoothly.

0:31.0

The reason we're here to try a little experiment in traffic management.

0:38.9

But we're not talking about signs or whistles of police handing out tickets. This experiment will

0:44.7

barely be noticeable. We aim to show that small changes can make big and

0:50.8

positive differences on bike paths yes but also in things like street crime,

0:55.7

an organ donation.

0:58.3

It might be counterintuitive, but all of these things

1:00.6

are connected by subtle, sometimes invisible structures, structures that

1:04.7

surrounds you and have a surprising influence over how you move through the world.

1:09.6

By the end of the episode, you'll start to notice them everywhere.

1:12.8

This is Choiceology, an original podcast from Charles Schwab. It's a show that reveals hidden

1:26.0

psychological forces, forces that affect the way you make decisions about everything from the

1:30.8

root you take to work in the morning to how fast you drive to how you spend your money.

1:35.0

It's about understanding human behavior, avoiding expensive mistakes,

1:40.0

and making the best choices for your future. Before we get the results from our little test and traffic management, let's travel to a different city for an experiment that rose from the ashes of social unrest.

2:04.0

It's 2011, August. Many parts of London are on fire. The city is experiencing the worst riots and decades.

2:20.0

So across the capital in Hackney, in Woolwich, in North London in South London,

2:27.0

across the capital we saw horrendous scenes of properties being burnt down, looted, and this was a sort of free-for-all.

...

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