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Shaul Shalvi was appointed in June 2020 as Professor of Behavioural Ethics at the Amsterdam School of Economics (ASE) of the University of Amsterdam (UvA).

What exactly does he mean by ’Behavioural Ethics’? ‘It means a more scientific approach towards analysing ethical behaviour. When philosophers look at issues like ‘fairness’ and ‘cooperation’, they adopt a more normative approach. How people should behave. But we investigate how people actually behave. What triggers people to be more or less cooperative, for instance.’

So, it’s all about understanding behaviour. ‘Do you understand the mechanisms driving people’s behaviour? Then you can try to create an environment where people behave more ethically.’

Nudge had huge impact

To help us understand how behavioural ethics, and its application, has developed, Shalvi cites the book Nudge. ’This is a book by American researchers Thaler and Sunstein and was a huge hit. To this day, governments use nudges, or ‘gentle pushes’, to steer behaviour in the right direction. Like in a cafeteria where they put healthy foods and beverages, rather than chips and sugary drinks, at eye level.’

Shalvi goes on to explain that this is a ‘soft nudge’. ’Soft nudges cost very little, and they don’t prohibit people from choosing various alternatives.’ But there are also harder, more effective policies such as a sugar tax. The ASE researcher acknowledges that these policies are less favoured by politicians Because they may impact their popularity.’ Policymakers therefore focus mostly on softer measures. ‘Doing so allows them to take action while not upsetting the public.’

Shalvi argues that policymakers should direct their attention more to a smaller number of harder and more effective measures. Rather than spend time and money on softer nudges that hardly make a difference.

Significant rise in number of organ donors

To illustrate how you can effectively impact behaviour, Shalvi cites the enormous growth in the number of organ donors. 'In 2003, the Netherlands ranked near the bottom of the league table for organ donations. This was because of the system people had to use to register as a donor.' In the Netherlands, the default was that people were not listed as donors. If they wanted to become donors, they had to opt in. ‘But people don’t really want to think about death, so they take no action.’

When Nudge came out in 2008, the Dutch government started incorporating insights from the book. ‘The system was ultimately reversed: you’re now automatically an organ donor and need to opt out if you don’t wish to be.’ Everyone is still free to choose but starts at the other end. “A year after implementing the policy change, in 2021, 4.6 million organ donors had been added.” Such a small change like this one can apparently make a big difference.

Research on behaviour in the sharing economy

One of the studies that is keeping Shalvi busy these days is a joint research study with the Dutch tax authorities. It addresses the sharing economy.

‘Even before the advent of Airbnb and the like, people were swapping apartments in Berlin, Amsterdam and other places. It was on a smaller scale, via Couchsurfing for instance.’ Commercial companies such as Airbnb pounced on that market with great success. ‘But like any system, there are people who will take advantage. If you don’t do anything about it, you’ll end up with shady outfits. Companies that buy up properties to be let exclusively through such platforms. This not only means there will be fewer properties on the market but it’s also unsafe. Homes are not hotels and don’t always meet all the necessary fire safety regulations.’

Towns and neighbourhoods are looking for solutions. A first literature survey by Shalvi and his colleagues has resulted in food for further scientific thought. ‘We are curious to know how transparency can play a role here. Are people more likely to choose hosts when they know they are dealing with an individual instead of a company?’ The tax authorities are mostly interested in seeing how they can motivate people to behave with some (or greater) responsibility. As Shalvi points out: ‘That’s the main focus of our research, both in this context and others.’