Nudge 1-20 Flashcards
What is choice architecture?
Choice architecture is organizing context in which people make decisions.
What is an example of choice architecture?
A doctor describing alternative treatments available to a patient
What is libertarian paternalism?
The ability or freedom to choose. It strives to make it easy for people to have their own way.
What is true about libertarian paternalism?
it is relatively weak, soft, and non-intrusive because choices are not blocked, fenced off, or burdened.
What is a nudge?
Any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options significantly changing their economic incentives
What is not a nudge?
A tax, fines, subsidies, loans, etc.
What is an example of a nudge?
Putting fruit at eye level
What is not an example of a nudge?
Banning junk food
What is homo economicus?
An economic man. It means that each of us thinks and chooses unfailingly well and fits within the usual depiction of human beings that is being offered by economists.
What can the homo economicus do?
Think like Albert Einsten, store memory as google docs, and exercise willpower like Ghandi
What is the difference between Homo Economicus and Homo Sapiens?
The Homo Economicus can do/solve complex problems and can tackle them as well. A sapien is like any other person that is forgetful and can’t do many things on their own.
What makes you qualify as an econ?
They can make unbiased forecasts. They can be wrong tho.
What makes a human not an econ?
Humans make predictable mistakes
What is the planning fallacy?
The systemic tendency toward unrealistic optimism about the time it takes to complete projects.
What is an example of the planning fallacy?
A project takes longer than what you initially thought it would.
