Choice Architecture

Question 1

Choice architecture

Answer 1

Designing choices that people take in order that they make better decisions

Question 2

What are the 5 examples of choice architecture

Answer 2

Framing
Default choice
Mandated choice
Restricted choice
Nudges

Question 3

Framing

Answer 3

Tendency of an individual to be influenced by the context in which information is presented
Eg life insurance
Or
Gym membership quoted x pence a day rather than annual monthly fees

Question 4

Mandated choice

Answer 4

Individuals are forced to make a choice on way or another without a default being set

Eg installation of software

Question 5

Default choice

Answer 5

A pre set choice an individual must make a conscious decision to change

Eg to oppt out of an organ donor

Question 6

Restricted choice

Answer 6

Giving people a limited number of options to prevent problems with volume of information

Eg government offers 5 best private pensions instead of choosing from thousands

Question 7

Nudges

Answer 7

Part of a philosophy of LIBERTARIAN PATERNALISM
Encouraging individuals to change behaviours is a predictable way without removing there ability to chose

Must be at a low cost

Eg displaying healthy food in a canteen first so consumers are more likely to choose the healthy food