head to irrationallabs.org for more information on applying behavioral economics
TRANSCRIPT
![Page 1: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/1.jpg)
Head to Irrationallabs.org for more information on applying behavioral economics
![Page 2: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/2.jpg)
Now with loss aversion in mindlet’s proceed to the next step...
WARNINGBe sure to fill in all the blanks before proceeding to the next step.
Skipping this step will prevent you from getting the most out of this guide.
![Page 3: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/3.jpg)
IDENTIFY KEYBEHAVIOR
01
![Page 4: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/4.jpg)
IdentifyKeyBehavior1
What is the key behavior that you want your users to do?
(eg. adopt negative keywords)
![Page 5: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/5.jpg)
(what you will measure to see theeffect of your test)
IdentifyKeyBehavior1
EXPERT TIP
Ask around, does everyone involved with your project agree that this is the most important behavior to measure?
Key Behavior = Measured Variable
![Page 6: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/6.jpg)
IDENTIFYBEHAVIORAL
02
BARRIERS
![Page 7: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/7.jpg)
any factor that decreases willingness to act on the key behavior
There are 2 types ofbehavioral barriers:
IdentifyBehavioralBarriers
2
Behavioral Barriers
factors that make it difficult for a user to engage in the key behavior
HEADWINDS
factors that make the key behavior not sufficiently motivating
TAILWINDS
![Page 8: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/8.jpg)
What are the barriers preventing people from doing the key behavior that you want them to do?
(list as many as you can think of, both tailwinds and headwinds)
IdentifyBehavioralBarriers
2
![Page 9: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/9.jpg)
IdentifyBehavioralBarriers
2
frictiontakes too much time, complex sign up
no perceived benefitdon’t believe the benefit, there is no benefit, benefit is too far in the future
HEADWIND
TAILWIND
![Page 10: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/10.jpg)
IdentifyBehavioralBarriers
2
EXPERT TIP
When thinking about tailwinds, think about enhancing current benefits and creating new ones
If you don’t know behavioral barriers and benefits, check out our workbooks
![Page 11: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/11.jpg)
CHOOSE ABARRIER
03
![Page 12: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/12.jpg)
ChooseA Barrier3
Choose the behavioral barrierthat you think detracts mostfrom people not exhibiting the key behavior, and explain it inthe following format...
![Page 13: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/13.jpg)
ChooseA Barrier3
The reason people are notcurrently partaking in
is because they
KEYBEHAVIOR
BEHAVIORALBARRIER
![Page 14: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/14.jpg)
ChooseA Barrier3
The reason people are notcurrently partaking inadopting negative keywords is because theyput it off until later
KEYBEHAVIOR
BEHAVIORALBARRIER
![Page 15: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/15.jpg)
IDENTIFY BEPRINCIPLES
04
![Page 16: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/16.jpg)
IdentifyBEPrinciples4
EXPERT TIP
If you don’t know BE principles, check out our workbooks
![Page 17: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/17.jpg)
IdentifyBEPrinciples4
Using BE principles, what are some ways that you can remove this barrier?
(list as many as you can think of)
![Page 18: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/18.jpg)
IdentifyBEPrinciples4
pre-commitmentput it on their calendar
in-your-way instructionshave a pop-up at login
urgencyprovide a deadline
B.E.PRINCIPLE
B.E.PRINCIPLE
B.E.PRINCIPLE
![Page 19: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/19.jpg)
CHOOSE APRINCIPLE
05
![Page 20: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/20.jpg)
Choose APrinciple5
Choose the behavioral economic principle that you think is most likely to remove the barrier
![Page 21: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/21.jpg)
Choose APrinciple5
By usingwe can increase the numberof people who
B.E.PRINCIPLE
KEYBEHAVIOR
![Page 22: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/22.jpg)
Choose APrinciple5
By using urgencywe can increase the numberof people whoadopt negative keywords
B.E.PRINCIPLE
KEYBEHAVIOR
![Page 23: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/23.jpg)
WRITE AHYPOTHESIS
06
![Page 24: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/24.jpg)
Write AHypothesis
6
If we do this…then this will happen…because...
![Page 25: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/25.jpg)
Write AHypothesis
6
If we add a sense of urgencythen people will be more likely to take action to add negative keywords, because urgency gives people a clear timeline in which they must complete the action in order to get the incentive.
![Page 26: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/26.jpg)
CREATE TESTCONDITIONS
07
![Page 27: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/27.jpg)
CreateTestConditions
7
Design your test below.Start with two conditions:
What will each group of participants see?Write out the exact text.
Will you use images?If so, add the exact images.
CONTROL TEST
![Page 28: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/28.jpg)
Make your ad more relevant. Adopt keywords and receive $50 in AdWords Credit
Make your ad more relevant. Adopt keywords in the next 7 days and receive $50 in AdWords Credit
CreateTestConditions
7
CONTROLCONDITION
TESTCONDITION
Test Condition = Control Condition+ One Key Variable you are testing
*
![Page 29: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/29.jpg)
CreateTestConditions
7
EXPERT TIP
Restrict to only one variable in the test condition. Imagine you include two variables in the test condition (e.g., urgency and amount of incentive) and the test condition works twice as well as the control condition.Why did it happen? YOU DON’T KNOW (it could have been urgency, OR the amount of the incentive, OR a combination of both)
![Page 30: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/30.jpg)
CreateTestConditions
7
GURU TIPS *use at your own risk!You can have more than two conditions:
The status quo is never the control.You can have more than one variable between test conditions if they are testing the same principle.If this is the last experiment you are ever running, then you have our permission to test different concepts and multiple key variables.
CONTROL TEST CONDITION 1
STATUS QUO TEST CONDITION 2
![Page 31: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/31.jpg)
Do I have a control condition?
✓ Do I have only one key variable between conditions?
Do participants understand thekey behavior that I want them to do?Do participants understand how to do the key behavior?
Are my instructions clear?
Quick Review
![Page 32: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/32.jpg)
SELECTPARTICIPANTS
08
![Page 33: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/33.jpg)
SelectParticipants
8
Let’s do a quick Q&A...
![Page 34: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/34.jpg)
SelectParticipants
8
Who will take part inyour experiment?All of your customers? Some of your customers?
Make sure participants are representative of your entirecustomer base. If you only test your most/least loyal customers,the results may not generalize to other customers.
![Page 35: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/35.jpg)
How will you decide whichparticipant is in which condition?
Participants should be randomly assigned. There should not be aspecial reason why someone is in your control or test condition.
SelectParticipants
8
![Page 36: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/36.jpg)
= Test Condition (6)
SelectParticipants
8
EXPERT TIP
Use spreadsheets to randomize your participants. Create as many random numbers as you have participants. Then assign each participant a number and list the participants in ascending or descending order.
12 Participants
= Control Condition (6)
![Page 37: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/37.jpg)
SelectParticipants
8
How many participants will takepart in your experiment?
Think about the number of people who are going to do the keybehavior.
Think about what relevant funnels might shrink your sample size.
You should target 250+ per condition.
IMPRESSIONS > CLICKS > =
![Page 38: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/38.jpg)
SelectParticipants
8
How many participants ineach condition?
Each condition should have the same number of participants.
![Page 39: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/39.jpg)
REFLECT
09
![Page 40: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/40.jpg)
Reflect9
Take some time to reflect onyour experiment (before & after)
What do you expect will happen? Write down your predictions and try to plot the data. Make sure you know how to analyze the data.Do you believe this experiment will prove your hypothesis?
Plot your data. Compare results to your prediction.
Did the experiment support your hypothesis?
Do you need further experimentation?
BEFORE AFTER
![Page 41: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/41.jpg)
2
Final Review
Identify Key
Behavior
1 345678
Identify Behavioral
Barriers
Choose a Barrier
Identify BE Principles
Choose a Principle
Write a Hypothesis
Create Test Conditions
Select Participants
9Reflect
![Page 42: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/42.jpg)
POP QUIZ!
![Page 43: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/43.jpg)
What’s wrong with this experiment?
Q1
Start being active today! Sign up for the Hard Body Gym today!
Start being active today! Sign up for the Hard Body Gym today and get 20% off your membership
I want to increase fitness activity among my employees. I predict that giving people 20% off their gym membership will get them to be more active. I create the conditions below.Half of my employees are randomly assigned to each condition.I measure how many of them sign up for the gym membership.
TESTCONTROL
![Page 44: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/44.jpg)
What’s wrong with this experiment?
Q1
Start being active today! Sign up for the Hard Body Gym today!
CONTROL
Start being active today! Sign up for the Hard Body Gym today and get 20% off your membership
TEST
Measuring the wrong key behaviorGym membership ≠ increased fitness activity
![Page 45: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/45.jpg)
Donate today and save a life
CONTROL
Q2
I’m curious to see which plea will get people to donate more money. I create the two conditions below. I randomize my 4,000 participants, and send 2,000 one version and the other 2,000 the other version. I measure the number of people who donate, and how much they donate.
What’s wrong with this experiment?
Donate today and get a tax write off
TEST
![Page 46: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/46.jpg)
Donate today and save a life
TESTCONTROL
Q2 What’s wrong with this experiment?
Donate today and get a tax write off
More than one key variable“Save a life” + Picture
![Page 47: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/47.jpg)
What’s wrong with this experiment?
Q3
Base Package: $200
Premium Package:$350
CONTROL
Base Package: $200Premium Package: $350Premium Plus Package:$400
I run an enterprise software company, and want to see which type of pricing will get more companies to sign up for my product. I predict that having 3 options instead of just 2 will increase my revenue. I send one version to my customers in Burlington, VT and the other to my customers in Los Angeles, CA.
TEST
![Page 48: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/48.jpg)
What’s wrong with this experiment?
Q3
Conditions ≠ randomly assignedCustomers in different areas may have different preferences
Base Package: $200
Premium Package:$350
CONTROL
Base Package: $200Premium Package: $350Premium Plus Package:$400
TEST
![Page 49: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/49.jpg)
TESTCONTROL
What’s wrong with this experiment?
Q4
I run a financial management company and want to see if people sign up more when they know how much time it will actually take them to sign up. Here are my conditions:
Without rebalancing quarterly, you may be missing out on potential money
Get more money from rebalancing in just 15 minutes each quarter
![Page 50: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/50.jpg)
TESTCONTROL
What’s wrong with this experiment?
Q4
Without rebalancing quarterly, you may be missing out on potential money
Get more money from rebalancing in just 15 minutes each quarter
More than one key variable“Get more money” + “15 minutes”
![Page 51: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/51.jpg)
Congratulations!You have passeddesigning experiments 101To become an expert contact:
![Page 52: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/52.jpg)
GURUQUESTIONS
![Page 53: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/53.jpg)
We notice Airbnb guests really value a quiet environment. How do we get hosts to decrease noisiness?
![Page 54: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/54.jpg)
Let’s follow the steps
2Identify
Key Behavior
1 345678
Identify Behavioral
Barriers
Choose a Barrier
Identify BE Principles
Choose a Principle
Write a Hypothesis
Create Test Conditions
Select Participants
9Reflect
![Page 55: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/55.jpg)
IdentifyKeyBehavior1
What is the key behavior that you want your users to do? KEY
BEHAVIOR
![Page 56: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/56.jpg)
IdentifyKeyBehavior1
What is the key behavior that you want your users to do? Decrease noisiness
KEYBEHAVIOR
![Page 57: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/57.jpg)
IdentifyBehavioralBarriers
2
What are the barriers preventing people from doing the key behavior that you want them to do?
(list as many as you can think of, both tailwinds and headwinds)
![Page 58: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/58.jpg)
IdentifyBehavioralBarriers
2
don’t want to be quiet
are not actively thinking about it
no incentive to be quiet
BEHAVIORALBARRIERS
![Page 59: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/59.jpg)
ChooseA Barrier3
KEYBEHAVIOR
BEHAVIORALBARRIER
The reason people are notcurrently partaking in
is because they
(behavioral barrier)
![Page 60: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/60.jpg)
ChooseA Barrier3
KEYBEHAVIOR
BEHAVIORALBARRIER
The reason people are notcurrently partaking indecreased noisinessis because theyhave no incentive to be quiet(behavioral barrier)
![Page 61: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/61.jpg)
IdentifyBEPrinciples4
Using BE principles, what are some ways that you can remove this barrier?
(list as many as you can think of)
![Page 62: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/62.jpg)
IdentifyBEPrinciples4
concretenessemail reminders explaining the importance of providing a quiet environment
incentivesproviding star rating on noisiness
B.E.PRINCIPLE
B.E.PRINCIPLE
![Page 63: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/63.jpg)
Choose APrinciple5
Choose the behavioral economic principle that you think is most likely to remove the barrier
![Page 64: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/64.jpg)
Choose APrinciple5
By using incentives we can increase the number of hostswho decrease noisiness
KEY BEHAVIOR
B.E. PRINCIPLES
![Page 65: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/65.jpg)
Choose APrinciple5
By using incentives we can increase the number of hostswho decrease noisiness
KEY BEHAVIOR
B.E. PRINCIPLES
![Page 66: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/66.jpg)
Write AHypothesis
6
If we do this…then this will happen…because...
![Page 67: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/67.jpg)
Write AHypothesis
6
If we add incentives,then hosts will be more likely to take action to decrease noisiness, because incentives nudge people to complete an action in order to get the incentive.
![Page 68: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/68.jpg)
CreateTestConditions
7
CONTROLTEST
CONDITION 1TEST
CONDITION 2
Design your test below
![Page 69: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/69.jpg)
CreateTestConditions
7
Noise level
Control - rate noise level
![Page 70: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/70.jpg)
CreateTestConditions
7
Noise level
Condition 1 - rate noise level + gift incentive (mug)
![Page 71: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/71.jpg)
Noise level
CreateTestConditions
7Condition 2 - rate noise level + financial incentive ($10)
![Page 72: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/72.jpg)
CreateTestConditions
7
What is wrong with these conditions?
![Page 73: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/73.jpg)
SelectParticipants
8
Select 1,200 randomlygenerated hosts in the US
400 hosts per condition
![Page 74: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/74.jpg)
Reflect9
Take some time to reflect onyour experiment (before & after)
What do you expect will happen? Write down your predictions and try to plot the data. Make sure you know how to analyze the data.Do you believe this experiment will prove your hypothesis?
Plot your data. Compare results to your prediction.
Did the experiment support your hypothesis?
Do you need further experimentation?
BEFORE AFTER
![Page 75: Head to Irrationallabs.org for more information on applying behavioral economics](https://reader034.vdocument.in/reader034/viewer/2022051620/56649ef15503460f94c02942/html5/thumbnails/75.jpg)
Head to irrationallabs.org to download our behavioral economics workbooks