Nudge policies in Covid-19 context: a necessary action or ethical dilemma?

ID: 66441

Authors: Ana Luize Correa, Maria Clara F. Dalla Costa Ames, Marcello Beckert Zappellini.

Source: Revista de Administração Contemporânea, v. 26, n. 5, p. 1-15, September-October, 2022. 15 page(s).

Keyword: COVID-19 , ethics , nudge , public policy

Document type: Article (English) Show Abstract

Objective: the aim of this study is to discuss nudges in the SARS-CoV-2 pandemic context, bringing back some reflections on ethics and revising them in the light of the new setting imposed by the pandemic. Theoretical approach: the theoretical framework of Behavioral Economics was the basis for nudges’ analysis, while utilitarianism, deontology, and virtue ethics were the classic moral theories used to reflect on ethical aspects. Methods: we undertook a literature review about nudges searched through the latest studies about this subject applied to COVID-19 mitigation. In the ethical discussion section, we used classical references to articulate the nudge theory with the following moral theories: utilitarianism, deontology, and virtue ethics. Results: our findings indicate that the trend intervention during the pandemic is ‘nudging messages’ and ‘increase people’s commitment,’ mainly to nudge people toward the desired behavior and increase policy adherence. Many experiments did not show significant results, and some drawbacks in policies’ applications indicate that nudges might be revised in crisis scenarios, such as a pandemic outbreak. The ethical discussion section relates three moral theories that justify some of the nudge’s aspects. Conclusions: this paper showed some flaws and inconsistencies in nudge theory and its application during the pandemic that can be solved by discussing ethical aspects. We suggest that connecting these problems with moral views might be a solution for some deadlocks found in the nudge theory.

Expectations, economic uncertainty, and sentiment

ID: 66440

Authors: Douglas de Medeiros Franco.

Source: Revista de Administração Contemporânea, v. 26, n. 5, p. 1-18, September-October, 2022. 18 page(s).

Keyword: causality tests , economic uncertainty , expectations , sentiment

Document type: Article (Portuguese) Show Abstract

Objective: this article aims to help unravel if and how economic uncertainty interacts with the informational structure of sentiment. Methods: the empirical strategy is based on a non-linear and non-parametric causality test to investigate the interaction between variables as distributions. This article builds primarily on the literature on expectation formation. Results: it was found that uncertainty based on the media (ex-ante) precedes sentiment, at most, until the second moment of its distribution. In addition, sentiment helps predict the informational structure of fundamental uncertainty (ex-post) and higher order moments of ex-ante uncertainty. Conclusion: sentiment can be considered a channel for uncertainty through the tone of expectations and erroneous expectations. Ex-ante uncertainty measures can also help calibrate the rational cost-benefit calculation of attention by acting as a leading indicator of the increasing value of information.

Behavioral economics and auto insurance: the role of biases and heuristics

ID: 66439

Authors: Pedro Brandão Graminha, Luis Eduardo Afonso.

Source: Revista de Administração Contemporânea, v. 26, n. 5, p. 1-20, September-October, 2022. 20 page(s).

Keyword: behavioral economics , bias , heuristics , insurance

Document type: Article (Portuguese) Show Abstract

Objective: this paper analyzes how framing, anchoring, and certainty effects may affect the behavior of the consumer of auto insurance. Methods: an experiment was carried out, with the face-to-face application of six versions of a questionnaire with 14 questions, for 163 respondents from an educational institution. Questions were prepared to analyze the existence of the framing effect, the anchoring effect, and the certainty effect, in addition to the deductible effect (present in several insurance products). The theoretical framework of the paper is the behavioral economics. Results: younger people, singles, and men are more prone to risk. Although the findings in general corroborate the evidence in the literature, the results of the certainty effect were contrary to expectations. The payment of the deductible increased the respondents’ risk aversion. Conclusions: the existence of biases and heuristics can cause the purchase of insurance to occur in a non-optimal way. Knowledge of the decision making process is important for insurers and consumers. It is also relevant for regulators, in order to subsidize measures aimed at market efficiency and consumer protection, through the design of an appropriate choice architecture.

Nudging is the architecture of choice in the world of banking

ID: 66438

Authors: Paulo Monteiro Rosa.

Source: Revista de Administração Contemporânea, v. 26, n. 5, p. 1-6, September-October, 2022. 6 page(s).

Document type: Article (English)

Nudging and choice architecture: perspectives and challenges

ID: 66437

Authors: Cristiana Cerqueira Leal, Ines Branco-Illodo, Benilde M. do Nascimento Oliveira, Luisa Esteban-Salvador.

Source: Revista de Administração Contemporânea, v. 26, n. 5, p. 1-7, September-October, 2022. 7 page(s).

Document type: Editorial (Portuguese)