Do Behavioral Nudges Work on Organizations?
Susilo Co-Director, Nina Mazar, and her collaborators share with Harvard Business Review their latest insights on if and how organizations can be nudged. Here is the link to the article.
Summary: Behavioral economics has shown that nudges can be used to help individuals act in their best interests. But can you apply similar tools to change organizational behavior? Researchers collaborated with Ontario’s Ministry of Finance to nudge organizations that failed to file an annual payroll tax return. They found that simple changes to a standard letter sent to late filers garnered 61 percent more in remitted taxes within 10 days of receipt of the letter, saving the ministry nearly $6,000 in collection costs and saving the organizations money in additional penalties and interest.