2.4 - behavioural economics and economic policy Flashcards
1
Q
what is nudging
A
a system of guiding people Ito making more rational decisions
eg - 5p charges on plastic bags
2
Q
restricted choice
A
by restricting the number of options available, less cognitive power is needed to make a choice
3
Q
default bias
A
the option that is made if the person doesn’t opt out go change anything
eg opt out of paying into a pension fun d
opt out organ donation
4
Q
mandated choices
A
when people must make a choice (in advance), eg choosing to be an organ doner
5
Q
what is choice architecture
A
choices can be manipulated by framing them in different ways to make better decisions easier or seem better
6
Q
what is framing
A
presenting information in a way that will influence consumer choices
eg - saying 90% satisfied not 10% unsatisfied.
