Chapter 2 - Behavioral economics and nudging in education: evidence from the field

Abstract

Education decisions are taken at young ages and involve immediate costs and future benefits. In such settings, a number of behavioral barriers likely influence choices and provide an argument for behaviorally motivated nudging interventions. In this survey chapter, we first summarize existing knowledge about how students, parents and teachers are affected by behavioral barriers: self-control problems, cognitive and attentional limitations, loss aversion, default bias, social preferences, and biased beliefs. We then review nudging interventions that alter the decision environment to influence active or passive decision-making and discuss their effectiveness. Our conclusion is that nudging interventions should be designed based on a thorough understanding of the behavioral mechanisms at play.