Minor - Week 6 Flashcards
Opt out system
Default is in; you need to opt out
opt in system
To choose to be in
Nudge definition
Alters people behavior in a predictable way without forbidding any options or changing financial incentives
- Not forbidding
- Not an incentive
- Choice architecture
- Making people better of as judged by their own (contrast marketing, goal revenue)
choice architecture
the way in which choices are designed in different ways choices can be presented to consumers, and the impact on decision making
- Different ways of choice presention
- Impact
Choice architects
Person, team or organization who is involved in designing choice architecture
- Design in a way that getting healthier and maximizing utility is the goal
Libertarianism
- Maximizing political freedom, autonomy and freedom of choice, individual judgement
- Skepticism on authority and state power
Paternalism
- Action that limits a persons or group liberty or autonomy and is intended to promote own good
- Limit persons autonomy to their own good; even is behavior is against individual self
Libertarian Paternalism
Paternalism; influence choices, that consumers are better off as judged by their self (promote own good)
Libertarian; people should be free to opt out of choices (autonomy)
Cons nudging
Could help choose when having
- Unlimited self- control
- Full information
- Cognitive capacities (not relying on hunger)
Nudging psychologists viewpoint
- Aimed at nonconsious thought processes (system 1)
- None of choices should be difficult to avoid
- Umbrella term for predictable and deliberate methods of changing people behavior - different types
nudges acronym, different types of nudges
Where should you provide choice architecture in?
- Incentives; shape behavior;
- Understand mappings;
- Defaults;
- Give feedback;
- Expect errors;
- Structure complex choices
nudges acronym, different types of nudges - Incentives
Shape behavior;
- taxi meter or electricity reports with neighbours
nudges acronym, different types of nudges - Understand mappings;
predict relation between choice and welfare
- (complex mappings; understandable information; side effects medicines
nudges acronym, different types of nudges - Defaults
option when you do nothing; opt in and opt out
- Make use of laziness people stick to defaults, because of loss aversion
- Forced choice better
nudges acronym, different types of nudges - Give feedback
- Feedback can itself change behavior
-Some choice architectures promote unhealthy behavior because no feedback is presen
nudges acronym, different types of nudges - Expect errors
- Should expect to make erros, as we are not rational decision makers
- Choice architecture provide fixing errors and use them painless
nudges acronym, different types of nudges - Structure complex choices
When the number of options and dimension increase decisions will choose based 1 criteria (non compensatory)
- Choice providing structured information
- Zorgkaart/ alphabetical order
MINDSPACE acronym
Choice architecture to influence people behavior change
- Messenger
- Incentives
- Norms
- Defaults
- salience
- Priming
- Affect
- Commitments
- Ego
MINDSPACE - Messenger
Who brings information
- Authority or expertise
- Similarity
- Peers
MINDSPACE - Incentives
Responses to avoid losses stronger
- reference points matter
- overweight small probaliliteies
- Mentally allocate money to bundles (healthy budgets at work) - protects us overspending
- Present bias
MINDSPACE - Norms
Let the diserable norm know
- Consider social networks
- Descriptive norms
- Strong norms more effective
- Undesirable norms carefull
Can backfire
- Reactance
- Boomerang
MINDSPACE - Defaults
Preset option - opt out