Nudge Chapter 8 Flashcards
What is a sludge?
Any aspect of choice architecture consisting of friction that makes it harder for people to obtain an outcome that will make them better off.
What is an example of a sludge?
Getting aid but needing to fill out 20 pages of paper work, making it hard to cancel a membership
What are unsubscribe traps?
In the book, it talks about Thaler opening a subscription online but having to cancel on the phone but only during their hours and give a two week notice. Overall, it discusses the difference in procedures for when you subscribe and unsubscribe.
What are rebates?
Where sellers return a bit of money back to customer after purchasing.
What is an example of a rebate?
Where people buy airline tickets well in advance and receive a sort of discount for getting ahead of time
What are shrouded attributes?
The headline price of the good understates the true cost to the user because the shrouded attributes and their costs are hard to discover. Essentially, making something cheaper or seem cheaper when its actually expensive and people dont really know this.
What is an example of shrouded attributes?
Selling printers cheap and ink expensive. Same with razors.
What is the Michigan high school nudge?
Students who were high achieving were encouraged to apply to Mich U and guaranteed financial aid as long as they got accepted. They also got to skip the forms as well.
What is the TSA sludge?
The checking and conducting security checks. One thing to help this is PreCheck for TSA which allows people to go in more quickly and save more time.
What is the Cookie Law?
The Cookie Law is ePrivacy Directive that requires opt in and tracks tech to access user information. The sludge is that sometimes it gets in the way of users.
What is the IRS tax return nudge?
There is a lot of paperwork involved in paperwork. As a result, the nudge created is an online pre done form.
