Connections in Transportation Department of Urban Studies and Planning, MIT, Spring 2015

Behavior and Policy

11.478 Behavior and Policy: Connections in Transportation Department of Urban Studies and Planning, MIT, Spring 2015

Full Reading List

Part I: Behavior and Policy in a Nutshell Class 1. Cafeteria Trays and Multiple Frameworks • Etheredge (1976) The case of the unreturned cafeteria trays: An Investigation based upon theories of motivation and human behavior Class 2. Ten Instruments for Behavioral Change • Miller and Prentice (2013) Psychological Levers of Behavior Change, Chapter 17 in Eldar Shafir, The Behavioral Foundations of Public Policy • Richard Thaler, Cass R. Sunstein: Nudge: Improving Decisions About Health, Wealth, and Happiness, Introduction • Daniel Kahneman: Thinking, Fast and Slow, Introduction Class 3. Measurement, Tools and Technology (Emile Bruneau) • Emile Bruneau 2015 "Putting Neuroscience to Work for Peace”, Working Paper • Duflo, E., Glennerster, R., & Kremer, M. (2007). Using randomization in development economics research: A toolkit. Handbook of development economics, 4, 3895-3962. • Greenwald, A. G., Nosek, B. A., & Banaji, M. R. (2003). Understanding and using the implicit association test: I. An improved scoring algorithm. Journal of personality and social psychology, 85(2), 197. You may try the Implicit Association Test here https://implicit.harvard.edu/ • Winter Mason and Siddharth Suri (2012) Conducting Behavioural Research on Amazon’s Mech Turk, Behavior Research Method 44(1) Class 4. My Brain at the Bus Stop: EEG & Waiting • Dan Ariely and Gregory S. Berns (2010), “Neuromarketing: The Hope and Hype of Neuroimaging in Business.” Nature Reviews Neuroscience. • Li, Zelin, F. Duarte, J. Zhao, Z. Zhao (2015) My brain at the bus stop: an exploratory framework for applying EEG-based emotion detection techniques in transportation study, working paper Class 5. Behavioral Foundation of Public Policy (Madrian) • Madrian, B. C. (2014). Applying Insights From Behavioral Economics To Policy Design. Annual review of economics, 6, 663. • Eldar Shafir (2013) The Behavioral Foundations of Public Policy, Chapter 26. Behaviorally Informed Regulation • Eldar Shafir (2013) The Behavioral Foundations of Public Policy, Forward, Introduction

Behavior and Policy

Part II: Behavioral Theory: Simon, Thaler, Kahneman Class 6. Choice Architecture: Nudges and Nudging • Thaler, Richard H. "From Homo Economicus to Homo Sapiens." Journal of Economics Perspectives 14, (2000): 133-141. • Richard Thaler and Cass Sunstein (2008) Nudge: Improving Decisions About Health, Wealth, and Happiness, Chapter 4 When do We Need a Nudge, Chapter 5 Choice Architecture • Jinhua Zhao and Tim Baird (2013) ‘Nudging’ Active Travel: A Framework For Behavioral Interventions Using Mobile Technology Class 7. Bounded Rationality • Amos Tversky; Daniel Kahneman (1974) Judgment under Uncertainty: Heuristics and Biases, Science, Vol. 185, No. 4157. • Simon (1955). "A Behavioral Model of Rational Choice." Quarterly Journal of Economics, 69(1) • Simon, H. A. (1956). Rational choice and the structure of the environment. Psychological review, 63(2), 129 Class 8. Prospect Theory • Kahneman, Daniel, and Amos Tversky. Prospect Theory: An Analysis of Decision Under Risk". Econometrica. XLVII (1979): 263-291. • Kahneman, Daniel; Tversky, Amos (1984) Choices, values, and frames, American Psychologist, Vol 39(4) • Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and uncertainty, 5(4), 297-323. • Kahneman (2003) Maps of Bounded Rationality: Psychology for Behavioral Economics, American Economic Review 93(5)

Part III: Time, Space and Information Class 9. Reinterpreting Time: Dali and Einstein • Raghubir et al (2011) Spatial categorization and time perception: Why does it take less time to get home? Journal of Consumer Psychology 21 • Schiffman, H. R. (1990). Sensation and perception: An integrated approach . John Wiley & Sons. Chapter 19: The Perception of Time • Allman, M. J., Teki, S., Griffiths, T. D., & Meck, W. H. (2014). Properties of the internal clock: first-and second-order principles of subjective time. Annual review of psychology, 65, 743-771. • Einstein, A. (1905). On the electrodynamics of moving bodies. Annalen der Physik, 17(891), 50. Class 10. Is Travel Time Wasted? ICT, Transit and Driverless Cars

Behavior and Policy

• Mokhtarian and Salomon 2001, How derived is the demand for travel? Some conceptual and measurement considerations, Transportation Research Part A: 35 (8) • RAND 2014 Autonomous Vehicle Technology: A Guide for Policymakers • Guo, Z, A. Derian, and J. Zhao (2014) Smart Devices and Travel Time Use by Bus Passengers in Vancouver, International Journal of Sustainable Transportation • Aliaksandr Malokin, Giovanni Circella, and Patricia L. Mokhtarian 2015 “How Do Activities Conducted while Commuting Influence Mode Choice? Testing Transit- Advantage and Autonomous-Vehicle Scenarios”, working paper Class 11. Power of Information and Nudging with Maps • Guo 2011 Mind the Map! Impact of Transit Maps on Travel Decisions in Public Transit Systems, Transportation Research Part A 45(7) • Eran Ben-Elia & Erel Avineri (2015): Response to Travel Information: A Behavioural Review, Transport Reviews • Dziekan and Kottenhoff 2007 Dynamic at-stop real-time information displays for public transport: effects on customers, Transportation Research Part A 41 • Watkins, F. et al 2011 Where Is My Bus? Impact of mobile real-time information on the perceived and actual wait time of transit riders, Transportation Research Part A 45

Part IV: Policy Design I Class 12. Salience in Transportation Pricing • Finkelstein, A. (2009) E-ztax: Tax salience and tax rates. Quarterly Journal of Economics 124 (3): 969-1010. doi: 10.1162/qjec.2009.124.3.969 • Michel, A., & Zhao, J. (2015). Modeling Saliency in Transportation Pricing: Optimal Mixture of Automobile Management Policies. In Transportation Research Board 94th Annual Meeting (No. 15-1133). • Kristina Shampanier, Nina Mazar, and Dan Ariely (2007), “Zero as a Special Price: The True Value of Free Products.” Marketing Science. Vol. 26, No. 6: 742-757. Class 13. Decision by Default: Active Choosing or Default Rules • Sunstein, Cass (2014) Active Choosing or Default Rules? The Policymaker's Dilemma http://dx.doi.org/10.2139/ssrn.2437421 • Johnson, E. J., & Goldstein, D. G. (2003). Do defaults save lives?. Science, 302, 1338- 1339. • Cass R. Sunstein, Deciding By Default, UPenn Law Review (2013) Class 14. Reference Class Forecasting and Transportation Planning as Preference Shaping • Flyvbjerg, B. (2008). Curbing optimism bias and strategic misrepresentation in planning: Reference class forecasting in practice. European Planning Studies, 16(1), 3- 21.

Behavior and Policy

• Buehler, R., Griffin, D., & Peetz, J. (2010). Chapter 1: the planning fallacy: cognitive, motivational, and social origins. Advances in experimental social psychology, 43, 1-62. • Siemiatycki, M. (2009). Academics and Auditors Comparing Perspectives on Transportation Project Cost Overruns. Journal of Planning Education and Research, 29(2), 142-156. • Zhao, J. (2009). Preference accommodating and preference shaping: incorporating traveler preferences into transportation planning (Doctoral dissertation, Massachusetts Institute of Technology).

Part V: Emotion and Transport Policy Class 15. Happiness: Experience or Memory • Daniel Kahneman: Thinking, Fast and Slow, Part V. Two Selves • Kahneman, D. (2000). Experienced utility and objective happiness: A moment-based approach. Choices, values, and frames, 673-692. • Lazarus, R. S. (1996). Passion and reason: Making sense of our emotions. Oxford University Press. • Diener, E., Scollon, C. N., & Lucas, R. E. (2003). The evolving concept of subjective well-being: The multifaceted nature of happiness. Advances in cell aging and gerontology, 15, 187-219. • Kringelbach, M. L., & Berridge, K. C. (2009). Towards a functional neuroanatomy of pleasure and happiness. Trends in cognitive sciences, 13(11), 479-487. • Abou-Zeid et al 2012 Happiness and travel mode switching: Findings from a Swiss public transportation experiment, Transport Policy 19 (1) Class 16. Emotion and Urban Planning (Thompson) • Dan Ariely, Predictably Irrational, Chapter 6 The Influence of Arousal • Welch, D. D. (1997). Ruling with the heart: Emotion-based public policy. S. Cal. Interdisc. LJ, 6, 55. • Barbalet, J. M. (2001). Chatper 2, Emotion and Rationality, in Emotion, social theory, and social structure: A macrosociological approach. Cambridge University Press. • Barbalet, J. M. (2001). Chatper 4, Action and confidence, in Emotion, social theory, and social structure: A macrosociological approach. Cambridge University Press. Class 17. Car Pride, Bicycle Decline and Failure of Life • Zhao and Zhao (2015) Understanding Car Pride: Psychological Structure and Behavioral Implications, Working Paper • Ming Yang, Maggie Wang, Jinhua Zhao and John Zacharias 2015 The Rise and Decline of the Bicycle in Beijing, Transport Reviews, Under Review

Part VI: Is Travel Social Class 18. Social Influencing System (Stibe)

Behavior and Policy

• Agnis Stibe 2014 Socially Influencing Systems: Persuading People To Engage With Publicly Displayed Twitter-Based Systems, Doctoral Dissertation • Ariely, D., Bracha, A., & Meier, S. (2009). Doing good or doing well? Image motivation and monetary incentives in behaving prosocially. The American Economic Review, 544-555. • Eldar Shafir (2013) The Behavioral Foundations of Public Policy, Chapter 4. The Psychology of Cooperation • Tom Vanderbilt (2008). Traffic, Chapter 4 Why Ants Don’t Get into Traffic Jams (and Humans Do) • Becker, G. S. (1993). Nobel lecture: The economic way of looking at behavior. Journal of political economy, 385-409 Class 19. E-hailing, Humanizing Travel and Shared Mobilty • Eldar Shafir (2013) The Behavioral Foundations of Public Policy, Chapter 4. The Psychology of Cooperation • Li, C., & Zhao, J. (2015). Humanizing Travel: How E-hail Apps Transform Stakeholder Relationships in the US Taxi Industry. In Transportation Research Board 94th Annual Meeting (No. 15-0680). • Tom Vanderbilt (2008). Traffic, Chapter 4 Why Ants Don’t Get into Traffic Jams (and Humans Do) Class 20. Help People Help Themselves • Loewenstein, John and Volpp (2013) Using Decision Errors to Help People Help themselves in Eldar Shafir Chapter 21 • Dan Ariely and Klaus Wertenbroch (2002), “Procrastination, Deadlines, and Performance: Self-control by Precommitment.” Psychological Science, Vol. 13, No. 3 • Dan Ariely and Michael Norton (2007), “How Actions Create—Not Just Reveal— Preferences.” TRENDS in Cognitive Sciences. Vol. 12, No. 1 • Michael I. Norton, Dan Ariely, and Daniel Mochon (2012), “The IKEA effect: When labor leads to love.” Journal of Consumer Psychology. v22

Part VII: Policy Design 2: Market Failure and Governing the COmmons Class 21. Market Failure and Governing the Common • Ostrom, 1998. "A Behavioral Approach to the Rational Choice Theory of Collective Action," Presidential Address, American Political Science Association, 1997. American Political Science Review, 92(1) • Ostrom 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, 100(3) • Nudge, Chapter 12 Saving the Planet • Richard Larrick and Jack Soll (2008). “The MPG Illusion.” Science, 320(5883)

Behavior and Policy

• Shahzeen Attari, Michael DeKay, Cliff Davison and Wandi Bruine de Bruine (2010). “Public Perceptions of Energy Consumption and Savings,” PNAS 107(37) Class 22. Game Theory and Mechanism Design • Roth, Alvin E. "The economist as engineer: Game theory, experimentation, and computation as tools for design economics." Econometrica 70.4 (2002): 1341-1378. • Roth, Alvin E. "What Have We Learned from Market Design?." Innovation Policy and the Economy, Volume 9. University of Chicago Press, 2009. 79-112. • McFadden, D. (2009). The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacque Laffont. Review of Economic Design, 13(1-2), 77-100. • Maskin, E. S. (2008). Mechanism design: How to implement social goals. The American Economic Review, 567-576. Class 23. Auction or Lottery: Reference and Perceived Fairness • Jinhua Zhao, Shenhao Wang, Tracy Chen and David Block-Schachter (2015) Superficial Fairness of Beijing's Vehicle License Lottery Policy • Chen, T. and J. Zhao (2012) Bidding to Drive: Car License Auction Policy in Shanghai and Its Public Acceptance, Transport Policy 27 Class 24. Impossible Elasticity! Policy Examples in Guangzhou, Beijing and Shanghai • Zhao, J. and S. Wang (2015). Impossible Elasticity! Behavioral Perspective of Guangzhou's Hybrid License Policy Class 25. Clearinghouse for Urban Mobility Service • Zhao, J (2015). Clearinghouse for Urban Mobility Service, NSF Proposal: NSF 14-610 Partnerships for Innovation: Building Innovation Capacity

Reading for PS5 Literature Review • Cronin Jr, J. J., & Taylor, S. A. (1992). Measuring service quality: a reexamination and extension. The journal of marketing, 55-68. • Brady, M. K., Cronin, J. J., & Brand, R. R. (2002). Performance-only measurement of service quality: a replication and extension. Journal of business research, 55(1), 17-31. • Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. the Journal of Marketing, 41-50. • Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. the Journal of Marketing, 31-46. • Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means- end model and synthesis of evidence. The Journal of marketing, 2-22. • Miller, R. B. (1967). Task taxonomy: Science or technology? Ergonomics, 10(2), 167- 176.