behavioural eocnomics and policy

Question 1

these policies focus on

Answer 1

choice architecture idea

Question 2

polcieis aka

Answer 2

nudge policies

Question 3

nudge policies are the opposite of

Answer 3

shove policies

Question 4

what are shove policies

Answer 4

dont have choice and got to accept whate gov is forcing on us

tax, subsiddies

Question 5

what is a nudge polocy

Answer 5

technique used by choice architects to change someones behaviour in a very easy and low cost way

w/o reducing the number of choies available

snf still allowing consumers freddom

Question 6

name the 5 choice architecture related policies / nudges

Answer 6

framign

nudges

default choice

restricted choice

mandated choice

Question 7

how can we use framin - in low cholestrol , fat products

Answer 7

improve the wat low fat , low cholestrol mkting is done by fricng ocmpanies to put his information on packaging so we cna see info better and our DM canbe more informed and therfore more soclaly desitable

Question 8

explain how framing cna help with calories

Answer 8

calorie content on menus and th way that informatino is presented

i.e ensuring its rpresented in the first palve

Question 9

explain how framing can help with price informaitno

Answer 9

price informatino to encourage us to use gyms and lesire centres

use weekly and monthly prices instead of one year

so less overwheomign

encourage us to to use it people excersising = socially desirable outcomes

Question 10

how can nudges be used

Answer 10

product palcemtn locatipiositiong salsd bars in areas people are more leikely to eat

recyclignbins designing e to look more appealing

discouragin unhealthy options ny repositionig location in supermarktet e.g at the back

desing of buildings - stairs at front esalators and lift towards back

Question 11

what os degault choice

Answer 11

entered into something unless we make formal descision to opt out

Question 12

how cna we use default choice

Answer 12

in orgna donation to increase number of donors

having side salsd insead of fires with burgers to increase halthy eating

pension enrollment - automatically enrolled unless wanna be out

Question 13

what is restricted choice

Answer 13

reducing number of choices made to a consuemr

Question 14

give example of restrcicted choice

Answer 14

-location of takeaways - cant be nearby schools within a certain srea

reduces choice of kids having to purchase food and drink

whic reduces fatty food consumption

-reducing number of public smoking area (not ashove as not taking away freedo and choie compeltley) but restricts choice as to where to smoke but give em sligt incentive to stop smokin

Question 15

what is mandated choice

Answer 15

idea you have to make a choice one way or another of whetehr youre gonna do something or not

Question 16

give exmaple of mandated choice

Answer 16

council have diff coloured bins to encourage recucling which forces a choice to be made and shouldd increase recyclig

Question 17

what are th e4 problems with behavioural policies

Answer 17

too paternalistic - gov inlfuencing dm to a too far extent

unpredictable and costly

based on fallacies and biases

not strong enought ot overcoe deep rooted issues

Question 18

explain behavioural plocieis unpredictable and costly

Answer 18

no guarantee this policy will work at all and consumers will react to diff location of sald in the way gov want

many got bid admin costs , if cost soutweigh benefits we get risk of gov failrue

Question 19

explain based on flalacies and biases

Answer 19

were not always gonna succumb to fallicies and biases this policy is based on

idea peopl are dumb is looking at em wrong way and reduces idea people are sensible and can make rational d on their own

Question 20

explai not strong enough to overcome deep rooted issues

Answer 20

like addictiveness and alchol -

issues of information failures

got emotional and psych issyes unlikel to be solved

Question 21

what are our evaluation points

Answer 21

costs v benefits arg

info provision can be better

integrated policy is the best appriach

Question 22

what is the cost benefits arg

Answer 22

gov should stay way if costs unlikrly to have beenfits

Question 23

explain info privisin can be better

Answer 23

pourig info out if this is the cuase of irraitonal descison making can be better way of hoinh sd oposed to tryna influence dm through unsusbstantial policies

Question 24

eplxain intgrated polciy best apprach

Answer 24

shove polciies better at dealing with deep rotted mkt failures

more liekly to have fefct we want than as opposed to small sclae nudge

polcieis not useless comletley maybe can be use alongside shove o get socially optimum rsults