Individual decision making - 2 Flashcards
1
Q
utility
A
the amount of satisfaction of benefit that a consumer gets from consuming a good or service.
2
Q
marginal utility
A
the satisfaction gained from consuming another unit
3
Q
describe the diminishing marginal utility theory
A
where the utility of a good decreases as quantity of consumption increases
4
Q
what is choice architecture?
A
refers to how choices may be influenced by the way they are presented eg opt out schemes
5
Q
framing
A
influences choices by wording
6
Q
nudges
A
influences choices by suggestions
7
Q
default choices
A
opt out - not against means decision made for you
8
Q
mandated choice
A
required to make a choice - when getting a drivers licence
9
Q
restricted choice
A
small number of options so its easy
