Nudge Chapter 11 Flashcards
What is the relationship between self-control and credit cards?
Learning to limit the use of credit cards as there is very little control and makes for people to rack up debt
What are the three architectures for mortgages?
- draw back on shrouded attributes make it as simple as possible
- eliminate the need for the previous one
- disclose everything
What is the architecture of drawing back on shrouded attributes?
Learning the major costs that mortgage providers fill out and put into the quoted interest rate. Make the process simple.
What is the architecture of eliminating the need of the first one?
Builds on the first architecture and makes the first default option good
What is the architecture for the third proposal?
It says to disclose everything and be transparent of everything
What should you do when you have multiple debt on different credit cards?
You should pay the minimum on each card and down the card with the highest interest rate.
What is the Simester study findings?
People were more likely to bet 2x as higher on tickets to a basketball game if they could pay with their credit card rather than cash
What are some design features of the CARD Act?
It was designed to protect people from various risks and costs such as over the limit and late fees. They used nudges in the form of disclosure requirements to ensure there would be no shrouded attributes. Also went as far as getting rid of certain fees
What is tally?
An app that was design for credit card debts and used nudges to make people pay it off by nudging higher default payments. It also monitors checking accounts to make sure bills are paid. It also charges interest if money is lend. It is also a use engine.
