The Origins of Behavioural Design

To understand the power and potential of Behavioural Design, we must first journey back in time to explore its origins and development.

In this article, we'll trace the evolution of behavioural design, and its connections to various disciplines.

Behavioural Design's Roots:

Psychology & Economics

Behavioural design has its roots in the intersection of Psychology and Economics, two disciplines that have long been intertwined.

In the early 20th century, psychologists and economists began to explore the intricacies of human decision-making, seeking to understand how people make choices and why they behave the way they do.

One key development was the emergence of Behaviorism in the 1920s and 1930s, a psychological theory that sought to understand human behavior by examining observable actions and responses. Behaviourism laid the groundwork for later research on the cognitive processes that underpin decision-making.

Meanwhile, in economics, the rational choice theory dominated, assuming that individuals make decisions based on rational calculations of costs and benefits.

However, this view began to be challenged in the mid-20th century, as researchers started to uncover evidence of irrational and biased decision-making.

The Birth of Behavioural Economics

In the 1970, psychologists Daniel Kahneman and Amos Tversky developed Prospect Theory which provided a more accurate representation of human decision-making. Their groundbreaking work demonstrated that people often rely on cognitive shortcuts, or heuristics and can be influenced by biases, leading to irrational choices. This marked the birth of behavioural economics, a field that blends psychology and economics to understand and predict human decision-making - in all its irrational splendour.

The Emergence of Behavioural Design

As the insights from behavioural economics grew, researchers and practitioners began to recognise the potential for applying these findings to real-world situations. In the late 20th and early 21st centuries, experts started using behavioural insights to design interventions, policies, and products that influenced human behavior more effectively.

One early example was the use of nudges – subtle environmental cues that encourage people to make better decisions without restricting their options. Nudging gained prominence in the 2000s, thanks to the work of Richard Thaler and Cass Sunstein, who popularised the concept in their book, Nudge: Improving Decisions about Health, Wealth, and Happiness. With The Nudge Unit leading the way in popularising the approach to the mass market. Also known as the Behavioural Insights Team (BIT), the team was originally founded within the UK government in 2010 as a way to use insights from behavioural economics to encourage better decision-making and outcomes in areas such as health, education, finance, and the environment.

The Expanding Universe of Behavioural Design

Over time, behavioural design has expanded to include a diverse array of disciplines and applications. It now encompasses fields such as social psychology, cognitive science, neuroscience, and even anthropology. This multidisciplinary approach has allowed behavioural design to tackle a wide range of challenges, from improving public health to promoting sustainable behaviours, boosting financial well-being, forging innovation and improving marketing communications.

Today, behavioural design is an essential tool for designers, change-makers, and researchers worldwide. It provides a powerful framework for understanding human behavior and designing interventions that create lasting, positive change.

Behavioural Design as a Sector

As for now, if you want to explore all the behavioural science companies from across advertising, finance, health, insurance, consultancy and government - this database is your first port.

Key Takeaways:

Behavioural design has come a long way since its humble beginnings in psychology and economics. By understanding its history and evolution, we can appreciate the rich tapestry of insights and disciplines that inform this powerful approach. Armed with this knowledge, we're better equipped to harness the power of behavioural design and create a more effective, human-centered future.