5.3 NUDGES

Question 1

define nudges

Answer 1

any aspect of choice architecture that alters behaviour in a predictable way without forbidding any options or significantly changing peoples economic incentives

Question 2

what is the concept of limited human rationality and who came up with it

Answer 2

Thaler; people who behave purely rationally dont exist

Question 3

how do humans and econs differ

Answer 3

econs are perfectly rational and have self-control; humans are weaker-willed and think in the short-term and often use automatic thinking

Question 4

define choice architecture

Answer 4

shaping the environment around a choice

Question 5

what are 4 approaches to change behaviour, used by policy makers

Answer 5

o 1. Regulation + restrictions – outlaw act / impose usage restrictions
o 2. Incentives – neg incentives (fines/taxes) to stop/reduce behaviour
o 3. Education – using info, education + persuasion to inform the public on how to live more healthily

4, Nudges

Question 6

how do nudges change behaviour

Answer 6

influence behaviour by changing how choices are presented in the environment, help people atain goals they already want by making positive choices easier to reach

Question 7

when do nudges work best

Answer 7

• When we see benefits now + costs later e.g. food choices
• When we make a rare decision + need it to be somewhat rational e.g. choosing a mortgage
• When feedback is NOT immediate e.g. if it takes a long time to find out how d=good a decision way, it is difficult to improve

Question 8

what 5 elements contribute to successful nudges

Answer 8

specificity, framing, personal information, visual placement, automatic enrollment

Question 9

how does automatic enrollment act as a nudge

Answer 9

nudge predicts people will not bother to actively opt in or out

Question 10

government related nudges

Answer 10

autoenrollment into pension schemes, I voted stickers after elections

Question 11

medical related nudges

Answer 11

vaccine appointments, smoking, automatic enrolled organ donation

Question 12

which is the main area that nudges are successful in

Answer 12

health / diet

Question 13

2 forms of nudges that can be used in food context

Answer 13

o Behaviourally based nudges – smaller servings of food, forced to ask if want more > large initial portion
o Cognitively based nudges – giving people info on menus + food packaging

Question 14

give specific food-related nudges and their efficacy

Answer 14

 Offer to downsize order [as opposed to supersize], 25% did + ate less calories than control group
 Healthy food placed more prominently in cafeteria, healthy sales inc and unhealthy dec in exp condition
 Items at beginning/end of menu 2x more popular
 Hotel buffet w/smaller plates, people ate less + left less waste food behind than control group w/large plates

Question 15

what are overarching criticisms of nudges

Answer 15

poor outcomes/no effect, overpromotion,publication bias, ethics

Question 16

how may research be overpromoting the power of nudges

Answer 16

o Large meta-analysis concluded nudged were effective, medium effect size
 Included a studies with fraudulent + altered data
o Publication bias
 Effect sizes of positive research examined
 Raincloud plots show almost no neg studies, but plots should be symmetrical with tails either side
 Aka publishing of pos results + suppressing of neg ones
o Nudge researchers have to have more rigorous and transparent methodology – pre-reg, replication etc.

Question 17

describe the ethicality of nudges

Answer 17

o The moral justification for nudges, according to Thaler rests on the assumption that they are paternalistic, or designed to make choosers better off, as judged by themselves.
o In reality, however, many nudges appear designed to maximize collective benefits
o E.g. sometimes the healthy food options are more expensive
o Do companies have an agenda – must be kept in mind
o They don’t take away free will, but they do attempt to alter it in a way
o True unethical would present 2 options which are not diff in anyway besides what they are

Question 18

describe some studies that have shown no effect of nudges

Answer 18

o Study: Comparison of own electricity consumption with similar households – no effect of nudge
o Study: Attempts to nudge students with interventions for mental health + effective studying – no impact on academic achievement
o Study: encourage students to apply for financial aid – found no effects between approaches

Question 19

name key person in nudges and what they are known for

Answer 19

Thaler - limited human rationality concept