Micro T2 - Behavioural Economics and Economic Policy Flashcards
What is choice architecture
The idea that says descisions we make are affected by the layot, sequencing and range of choices we haev aswell
Chocie architecthure methdos
framing
nduges
default choice
restrcted choice
mandated choice
What is default choice
an option where you are in unless you opt out
What is framing
the way info is presenetd for
How is choice architecture and framing used
The altering of info provided to influence choices
The focus of loss/gain for consumers from a descion
Give an example of framing
better labelling
price information
caloire content etc
ensuring info is presneted
what does price information mean in framing
breakign down totoal prices , eg gym memebrships as a motnhly/ weekly fee vs a whole year
What are mandated choices
Where choices are required to be made by law
What are restricted choices
Where people are offered a limited number of choices so that they are no overwhelmed by the complexity of a situation
What happens if people have to many choices
People will make poor choices as they will struggle to make descisions, due to a lack of thought etc.
what are nudge polocies
basically chocie architecture
what are nudges
changign lcoation or psotition fo shit
examples of defautl choice
default having a sald with meals unless you say so
examples of restrcited chocies
no take aways near choice
school menu in schools
public smoking areas
liscence place bands
what are liscenece place bans
if you have a certain digit on the last number on your number plate you cant use your car that day
issues with nudges
too paternalistic
unpredictable
assume consumer behaviour
costly
based on biases
dumbs people down too much
may not be strong enough than traditional
evalatuion of them
gov failiure
info provision better
an intergrated way is better
these are only small scale
aqa framign example
advertising gym cost at 25/week rathern tahn 1300/year
aqa mandated chocie examples
optig in or out for organ donor when applyigng fornational documnets
hwo to give exampels of defautl chocie when talkign ab x topci
think abotu hwoa consuemr woudl ebenfit from such a default chocie
eg unelss specificed, peopel are enrolled and given a gym memebership
exmaples of nudge aqa
placing helathy food and makign it mroe accessible
exampel forestricted chocies
limitign say suppliers fo shit so consuemrs have only few optiosn to evaluate and dotn oevrhtink the laetrnatives
