Picking up on Michael’s post, here is an articleÂ written by a thoughtful economist on why there could be $20 bills lying around on the streets.Â Â In my Los Angeles, water is cheap and even electricity prices are low.Â If consumers faced higher water and electricity prices, we would see a faster diffusion of the products that Michael champions.Â Â I am in Rome rightÂ now and facing $6 a gallon gas — the entire vehicle fleet consists of two door tiny cars.Â People respond to incentives.Â Â
Sunstein and Thaler have stressed the power of the nudgeÂ in changing behavior.Â In the case of technology adoption, does one size “fit all”? If I simply drop off some free lightbulbs at your house, does this first tasteÂ Â hook you on the “green bulb” from now on?Â For some households the answer will be “yes” and for some households “no”. A serious social scientist should have a predictive model for determining which households are most susceptible to such a simple nudge.Â Will socio-economic status (i.e poor, or college graduate) predict the adoption decision? Will political identity play a key role in how the household responds to this nudge?