. >> reporter: like many americans, barbara nordin, a freelance editor and writer in charlottesville,virginia, often procrastinates. >> i knew that professionally i needed a website. and i had the domain name, i, you know, made lists of what i put on it for eons... >> reporter: but in 2012, she learned about an online program that would push her to get the project done or else she would lose $50 dollars. it's an example of behavioral economics at work, according to dean karlan, a yale university economist. >> it's about realizing that you're going to respond to incentives. if you don't like the way you're going to respond, you can change those incentives. you can change the price of things by being a bit self-aware and thinking ahead. >> reporter: understanding how people respond to incentives is central to behavioral economics, a field which looks at the psychology behind economic decisions. this new science is being used to help people-- nudge them-- on everything from making better healthcare decisions to maximizing energy efficiency. but one of its biggest uses is in improving peo