Time for a government ‘nudge’ unit in Hong Kong?

All around the world, governments and think tanks are applying behavioural economics and so-called nudge theory to formulate people-friendly policies – such as prize incentives for taking Covid-19 vaccines – to get them to do what’s good for them, even if they are reluctant to do it

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People queue up to have their vaccine jabs at Hong Kong Central Library in Causeway Bay. Photo: Xiaomei Chen

Alex Lo

Alex Lo has been an SCMP columnist since 2012, covering major issues affecting Hong Kong and the rest of China.

Published: 10:15pm, 9 Jun 2021Updated: 10:22pm, 9 Jun 2021

Some years ago, the Nobel Prize-winning economist Richard Thaler thought of doing an experiment in which people would be given lottery tickets to encourage them to take the flu vaccine. Too bad he and his academic partner ended up not doing it. The results would have been quite relevant today.

The world, or at least the rich parts of it, have gone from having no vaccine for Covid-19 to too many doses with people in places such as Hong Kong refusing or hesitant to take the free shots.

Cities across the United States have responded by offering a vaccine lotto and prizes, including scholarships. Back in Hong Kong, Sino Group, the Ng Teng Fong Charitable Foundation and Chinese Estates Holdings are jointly offering a one-bedroom flat measuring 449 sq ft worth HK$10.8 million in Kwun Tong as the grand prize.

Other private companies are giving out discounted hotel room rates, shopping coupons, air tickets and a HK$500,000 electric car. The Hong Kong government and some firms, including investment banks, are offering paid vaccine leave days. The winner of another prize can host a private party on a plane.

The inducements are effectively real-life experiments that offer a wealth of data to social scientists such as Thaler, who pioneers what is called behavioural economics. It wouldn’t be surprising if the first people in the US who proposed holding a Covid-19 lotto are specialists in such disciplines.