Articles Flashcards
The main message from De Ridder (2022) on what influences the effectiveness of a nudge
Nudge effects are not dependent on transparency or thinking styles per se, but are influenced by personal preferences, as individuals cannot be nudged into actions they do not desire.
Reference dependence
Perception is reference-dependent.
The perceived attributes of a focal (central) stimulus reflect the contrast between the stimuli and the context of prior and concurrent stimuli.
Reference dependence is incompatible with the interpretation of expected utility theory.
This is flawed because it is reference independent: it assumes that the utility assigned to a state of wealth does not vary with the decision makers’ initial state of wealth.
For example: 2 squares have the same brightness, but that does not appear so as the surrounding have other colors.
Expected Utility Theory
People are rational in making their decisions. They calculate the values of outcomes of decisions and weigh these completely rational.
Prospect theory
People are not rational: we are loss aversive. Losses weigh stronger than gains.
Value is attached to changes. Normal carriers of utility are gains and losses invokes general idea that changes are relatively more accessible than absolute values.
Standard utility theory
Utility (value) is attached to wealth.
Loss aversion
We prefer avoiding losses over acquiring gains. It makes people inclined to avoid making changes, even when it would be in their self-interest to do so.
What system is involved in errors of intuitive judgements?
Both systems. System 1 generates the errors, and system 2 fails to detect and correct it.
What do consciousness, efficiency, intentionality and controllability all have?
Their own set of lower-order dimensions.
When do and don’t people mind being nudged by a transparent nudge?
Overall they don’t mind, unless ‘unconscious’ is used in the sentence.
Heuristics are mental shortcuts definition according to Gigerenzer
A strategy that ignores part of the information, with the goal to make decisions more quickly, frugally, and/or accurately than more complex methods.
They are not part of dual system but separate.
Sometimes, it works better to use heuristics.
When does it work better to use heuristics according to Gigerenzer?
In uncertain situations, with low predictability.
True or false: a heuristic is ecologically rational
True.
A heuristic is not good or bad, rational or irrational; its accuracy depends on the structure of the environment .
Recognition based heuristics
Recognition heuristic: if one of two alternatives is recognized and the other is not, then infer that the recognized alternative has the higher value with respect to the criterion.
Fluency heuristic: if both alternatives are recognized, but one is recognized faster, then infer that this alternative has the higher value with respect to the criterion.
Recall based heuristics
One clever clue heuristic: one reason decisions: a class of heuristics that bases judgements on one good reason only
- Take the best heuristics: ignores cues
- Hiatus heuristics: if a customer has not pur- chased within a certain number of months (the hiatus), the customer is classified as inactive; otherwise, the customer is classified as active.
Trade-off heuristics: weighs cues or alternatives equally and thus makes trade-offs (compensatory strategies).
- Tallying: ignores weights, weighing all cues equally
- Mapping model
- 1/N rule
Less is more effects
Heuristics can be more accurate than more complex strategies even though they process less information.
In uncertain situations, heuristics are needed. This works better and faster than trying to find all information.
