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Title: Using Nudges and Choice Architecture to Prevent Free Riding and Voluntarily Provide Public Goods
Author: Jacob R. Fooks, Kent D. Messer, and Shang Wu
Dept of Applied Economics and Statistics
University of Delaware
messer@udel.edu
Discipline: Economics
Target Audience: Introductory, Appropriate for major and non-majors
Keywords: Behavioral Economics, Charitable Giving , Choice Architecture, Nudges, Public Goods
Length of Time/Staging: Part 1 - Voluntary Contribution Game (60 minutes)
Part 2 - Group Discussion and Writing Exercise (30 min. in class)
Part 3 - Choice Architecture Economics Experiment (45 minutes)
Part 4 - Individual Writing Assignment (1 week)
Abstract: This problem encourages students to understand the concept of "choice architecture" and how it can be used to prevent the free riding behavior that plagues the provision of public goods. First, students participate in the class "Voluntary Contributions Game" to illustrate the problem of free riding and then are asked to work in groups to explain the source of this behavior and to extrapolate to why this can lead to significant societal problems. The students then participate in another economics experiment that illustrates how changes in the "Choice Architecture" can "nudge" people to avoid free-riding and increase their voluntary contributions to a public good -- in this case a nonprofit organization. Finally, students complete related readings and do an individual writing assignment that requires them both to demonstrate their knowledge of the concepts of choice architecture and to apply it to other situations related to public goods. This problem is appropriate for students in introductory economics, environmental economics, or environmental studies courses.
Date Submitted: 9/4/2012
Date Accepted: 5/2/2013
Date Published: 5/5/2013
Problem content: Part 1.
Part 2.
Part 3.
Part 4.
Appendix 1 (pdf)
Supporting Materials: Format of Delivery
Student Learning Objectives
Teaching Notes
Assessment Strategies
Solution Notes
  © Jacob R. Fooks, Kent D. Messer, and Shang Wu, Univ. of Delaware, 2013.
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