Behavioural economics

Question 1

Satisficing behaviour

Answer 1

tendency for people to accept satisfactory outcomes instead of aiming for protection with use of heuristics. They often use simple heuristics when making decisions.

Question 2

Nudge examples

Answer 2

opt in and opt out systems, mortgages

Question 3

Choice architecture examples

Answer 3

Redesigning cafeteria layouts to prioritise healthier food
- EAST:
- Easy- pure gym, flexible payment hours, rehydration stations
- Attractive- appealing packaging- banana slip caution signs
- Social- encouraging recycling by publicising
- Timely- Sending text reminders to get a flu shot

Question 4

Limitations of choice architecture

Answer 4

• Strong preferences or habits unbreakable
• Systemic issues- unequal access to healthy food

Question 5

Can we nudge people and businesses to switch towards electric vehicles to help reach net 0 targets?

Answer 5

• Increase in share of new cars using electric and hybrid electric cars in UK
• Norway- need to move beyond nudge to make change, have made good changes.
  
  • Free municipal parking
  • charging right- live near a charging port