Incentive and nudge design for human behavioural change

Abstract

This paper addresses the modelling and management problems for human behavioural change, in particular, aiming reduced congestion. First, the behavioural change driven by incentivizing and informational nudging is modelled reflecting the tendency of a human group. Next, an incentive- and nudge-based optimal management problem is formulated, where the model of behavioural change is taken into account. Finally, the effectiveness of the incentive and nudge design is verified in a numerical experiment.

Keywords

• human behavioural change
• incentive
• optimal control
• informational nudging
• discrete choice model
• nudge