behavioural eocnomics and policy Flashcards
these policies focus on
choice architecture idea
polcieis aka
nudge policies
nudge policies are the opposite of
shove policies
what are shove policies
dont have choice and got to accept whate gov is forcing on us
tax, subsiddies
what is a nudge polocy
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
name the 5 choice architecture related policies / nudges
framign
nudges
default choice
restricted choice
mandated choice
how can we use framin - in low cholestrol , fat products
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
explain how framing cna help with calories
calorie content on menus and th way that informatino is presented
i.e ensuring its rpresented in the first palve
explain how framing can help with price informaitno
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
how can nudges be used
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
what os degault choice
entered into something unless we make formal descision to opt out
how cna we use default choice
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
what is restricted choice
reducing number of choices made to a consuemr
give example of restrcicted choice
-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
what is mandated choice
idea you have to make a choice one way or another of whetehr youre gonna do something or not
give exmaple of mandated choice
council have diff coloured bins to encourage recucling which forces a choice to be made and shouldd increase recyclig
what are th e4 problems with behavioural policies
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
explain behavioural plocieis unpredictable and costly
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
explain based on flalacies and biases
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
explai not strong enough to overcome deep rooted issues
like addictiveness and alchol -
issues of information failures
got emotional and psych issyes unlikel to be solved
what are our evaluation points
costs v benefits arg
info provision can be better
integrated policy is the best appriach
what is the cost benefits arg
gov should stay way if costs unlikrly to have beenfits
explain info privisin can be better
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
eplxain intgrated polciy best apprach
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
