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Nudge

The things we do: Nudging people to give

Roxanne Bauer's picture

Man delivers gas cylinders in IndiaIn an appeal to civic duty, the Government of India is asking citizens to forgo a gas subsidy they receive so that gas cylinders can be transferred to the less fortunate. To encourage Indians to "Give It Up," the government called on business leaders to set an example and made the procedure extremely easy.

India recently launched an ambitious cash transfer program to help small businesses and households buy fuel.  Under the plan, consumers of liquefied petroleum gas (LPG), commonly referred to as propane or butane, receive a cash subsidy in their bank accounts to buy gas cylinders at market price.

Once joining the scheme, the subsidy, which is equal to the difference between the current subsidized rate and the market price, is transferred to the consumer’s bank account when he/she orders a cylinder.  Another transfer is then provided at the time of delivery of the cylinder. 

Last November, the Direct Benefit Transfer Scheme for LPG was rolled out across 54 districts, with the rest of the country participating by January 1 of this year. 

The scheme was launched by India’s previous UPA government in June 2013, but it was abruptly stopped earlier this year following court orders.  It has since been modified to exclude the requirement of providing a unique identification number (Aadhaar) to avail the cash subsidy.

The idea behind the direct benefit transfer is that it can ensure that the subsidy meant for the genuine domestic customer reaches them directly and is not diverted. The Government of India hoped to save millions each year by curbing diversions and leakages in the system but also to ensure efficient delivery of subsidies to the target beneficiaries— the consumers.

The Things We Do: Facebook Manipulates Our Mood

Roxanne Bauer's picture

When you smile, the world smiles back.”

We all know that smiling helps lift our moods as well as the moods of others.  Each time you smile at someone, you entice them to smile back.  But what about the messages we post online? 

Turns out, Facebook has been conducting a social psychology experiment on some of its users, and the results confirm what we already know… but in a surprising way.

In the experiment, Facebook manipulated the number of negative and positive posts appearing in the news feeds of some users.  When Facebook reduced the number of positive posts appearing in a news feed, making it feel more negative, individuals not only shared fewer positive posts but actually shared more negative posts, spreading the negativity they received. Conversely, when negative posts were reduced, making news feeds seem more positive, users produced fewer negative posts and more positive posts.  The study demonstrates the concept of emotional contagion (EC), the process by which a person or a group influences the emotions and affective behavior of another person or group through the conscious or unconscious induction of emotions. 


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