1.2.4 Behavioural economics and economic policy Flashcards

1
Q

choice architecture

A

influencing consumer choices by the way the choices are presented.
e.g. opt-out instead of in of organ donation, causes higher percentage of organ donators

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2
Q

Framing

A

form of choice architecture that influences choices by the way words and numbers are used, e.g. presenting life insurance premium payments as ‘less than £3 per day’ sounds more palatable than £1000 per year.

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3
Q

Nudges

A

influencing consumer behaviour via the use of gentle suggestions and positive reinforcement

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4
Q

Default choice

A

influencing consumer behaviour by setting socially desirable choices as default options.

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5
Q

Mandated choice

A

where people are legally required to make a choice.
e.g. organ donatio for driving licneces or passports

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6
Q

Restricted choice

A

giving consumers a limited number of options when making a choice.
too much choice can sometimes ‘paralyse’ individuals from making an effective choice

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