[MUSIC]
I think at Carnegie Mellon we're really looking at problems that
matter to the world.
We're looking at climate change, we're looking at health insurance decisions,
decision making among teenagers about safe sex,
we're looking at workplace discrimination.
And we're looking at trying to understand these issues.
Why they happen, but also really about how to change them.
And I think that's really unique about our group is that we're really
interested in change.
Our brand of behavioral economics is much more mixed.
It's about 50% economics and 50% psychology.
And I think it's not just that we have economists and
we have psychologists, but the psychologists know a lot of economics and
the economists know a lot of psychology.
>> A lot of the work we do begins with concrete problems,
like the earned income tax credit, how to increase savings.
Our colleagues, Saurabh Bhargava, just worked with a local bank to try
to encourage their employees to take up their retirement benefit.
The employees weren't taking advantage of that and
they were losing out on thousands of dollars.
Saurabh found that if he offered employees $10 to get on
the site and sign up for this benefit, they did it in droves.
That's an example of behavioral economics,
where thousands of dollars of benefits can't compete with a $10 gift certificate.
That's a good example of how the details really matter.
>> It's really the way in such such incentives and
policies are framed and presented and communicated.
And that basic insight has a potential to radically improve
the ability of policies to lead to better outcomes.
>> There's a tremendous amount of interaction between people.
I've never seen a department that's as interactive as our department.
>> I'm around such bright people like experts in organizational behavior,
marketing, psychology, decision making.
And every week we meet.
Everybody comes there, we share ideas, and I haven't seen that in other places.
It's such an amazing experience, the feedback from an audience that is so
diverse, this is truly amazing.
>> Well a lot of our research does use Carnegie Mellon undergraduates
as research participants, it's nice to go out in the community and
get a different type of population.
>> I think we have the only mobile lab that we can drive into different
neighborhoods, which is another example of the uniqueness of our program.
>> Carnegie Mellon is really one of the few institutions in the world
that has these intimate relationships with government agencies at the local,
state, and federal levels, through which we can communicate these findings and
directly reshape actual policies in a way that is measurable and impactful.
[MUSIC]
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