Erel Avineri of the Centre for Transport & Society looks at traffic from the perspective of a Human, not an Econ. Standard economic models of people seem to do a poor job anticipating what people do on the road. Using models from behavioral economics and psychology, Avineri is interested what influences our boundedly rational travel behavior. What kind of feedback might change it? What effect do our interactions with others on the road have? According to his web site, he is “exploring how to change travellers’ behaviour in a way that does not limit their freedom of choice (for example by ‘nudging’).” In some interesting research, he applied the lessons of loss aversion to everyday decision making by travelers. We asked Avineri to share his insights with Nudge blog readers.
Loss aversion on the road