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LESSON 2 · Your Irrational Brain: Behavioral Economics

Social Nudges

We are deeply social creatures, and what other people do powerfully shapes our own choices. Hotels found that telling guests "75% of guests in this room reused their towels" boosted reuse far more than generic environmental appeals. The same effect shows up in energy bills, tax compliance, and charitable giving.

Tax agencies found that telling citizens most neighbors pay on time dramatically improved compliance rates. Energy companies showing how your electricity usage compares to similar households reduces consumption among heavy users.