Nudges to improve the COVID-19 crisis
- Larissa Cheung
- Mar 30, 2022
- 3 min read
Currently, the status of the pandemic is highly depedent on individual behaviours that aggregate to influence the macroeconomy. Such behaviours of economic agents are studied by a field in economics known as behavioural economics. These behaviours can be influenced or manipulated via ‘nudges’ explained by the Nudge Theory. In Layman’s terms, nudge theory suggests that using implicit suggestions and positive reinforcement in economic transactions may influence the behavioural tendencies of individuals and/or groups of individuals.
The wide use of behavioural insights and nudges have aided governments’ efforts to combat the recent pandemic-induced recession. Many governments used applications of nudge theory to influence communities to make responsible choices, such as minimising social gatherings, getting vaccinated, and more. This commentary will observe the implementation of two nudges in Hong Kong, their effectiveness as behavioural interventions, and finally how they could aid economic recovery.
The first nudge, perhaps the most pervasive one, is slogans and catchphrases to combat the virus. In Hong Kong, the most popular ones are “Protect yourself and others Get Vaccinated” and “Together, We Fight the Virus!” (see Figures 1 and 2). These slogans not only convey messages of protecting the community and defeating an undesirable crisis but also are evidently used to encourage and promote conscious decision making.
According to Sasaki et al (2021)., which studied the effect of nudges on encouraging social distancing, it was found that an altruistic message was the most effective in encouraging social distancing and pandemic friendly behaviours. The latter refers to improved social awareness, for example, people becoming more aware of their surroundings and the consequences of their behaviours. Examples of altruistic messages from the study included “...you can protect the lives of people close to you.” Hong Kong’s “Protect yourself and others Get Vaccinated” which was neither additionally nor less effective than other messages would be considered a selfish and altruistic message according to the study.
Despite not being as effective as an altruistic message alone, “Protect yourself and others Get Vaccinated” still indicates a sense of altruism, suggesting that it can be effective in encouraging people to get vaccinated. While nudges aren’t the sole driver of vaccine rates, Hong Kong shows a 72.3 percent vaccination rate, which can be considered moderately high. The altruistic message of the second slogan, “Together, We Fight the Virus!” is less explicit, however, the studies demonstrate that all messages implying the need to practice COVID-19 safety measures are still somewhat effective in promoting social distancing behaviours.
Furthermore, the effectiveness of pervasive messages like such is enhanced by their continuously repeated circulation which maximises the odds of more of the population receiving, understanding, and engaging with the messages. Anecdotal evidence suggests that these messages are pervasive throughout Hong Kong. With nudges that encourage pandemic friendly behaviour, COVID-19 cases and frictions may decrease, successfully minimising economic decline and bringing economies closer to their economic output potential.
Another nudge used to reduce COVID-19 transmissions includes the placement of disinfectant spray machines (see Figure 3). The machines spray disinfectant mist when someone walks in front of the machine. These machines physically provide a service that reduces the risk of transmissions but also encourages citizens to stay clean. Nobel-prize winning Behavioural Economist Richard Thaler said, “To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting the fruit at eye level counts as a nudge. Banning junk food does not.” Surely, individuals passing this machine are not obligated to get disinfected and have full control to ignore the machine. However, in the midst of a pandemic where the urge to stay clean is strong, this new technology that piques one’s curiosity will encourage people to stand in front of this machine. Anecdotally, the nudge has been effective for the author, as these machines caught my attention and prompted me to write this commentary. These machines improve hygiene which will consequently and likely reduce COVID-19 cases, boosting economic activity and the economy's potential to perform at higher levels.
Despite nudges only playing a small role in combating the COVID-19 crisis, its societal effects will be significant altogether if everyone contributes. Hong Kong with a population of 7.6 million has managed to maintain fewer than 150 daily cases from March 2020 to February 2022. Inevitably, mask mandates and other regulations will be more impactful on society’s behaviour to effectively control the virus, but a key takeaway is that nudges contribute to maximising all outlets of promoting a COVID-19 free environment. Ironically, at the time of writing this commentary, Hong Kong is experiencing a historically high wave of daily cases that are skyrocketing at tens and thousands. This reveals the limitation of nudge theory as a public health policy, but also society’s helplessness in desperate times when combatting COVID-19, especially the latest and most contagious variant, Omicron.
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