ba 3300 notes #2

Question 1

Predictable problems can arise when people must make decisions that test
their capacity

Answer 1

self-control

Question 2

Some of life’s important decisions do not come with many
opportunities to practice, e.g., buying a house or a car or one’s career choice.
Rare and difficult choices are good candidates for nudges

Answer 2

Frequency

Question 3

Learning is most likely if people get immediate, clear feedback.
Alas, many of life’s choices are like practicing putting without being able to
see where the balls end up. Someone can eat a high-fat diet for years without
having any warning signs until the heart attack.

Answer 3

Feedback

Question 4

any factor that significantly alters the behavior of Humans, even
though it would be ignored by Econs. Because people’s biases are
predictable, they can be nudged in a meaningful way.

Answer 4

nudge

Question 5

They assess the likelihood of risks by asking how readily examples
come to mind

Answer 5

availability
heuristic

Question 6

the tendency to stick with what you have.

Answer 6

Status quo bias