Nudges

Question 1

What is a nudge?

Answer 1

A method designed to influence consumer choices in a predictable way, without offering financial incentives, imposing sanctions, or limiting choice.

Question 2

What is choice architecture?

Answer 2

The design of the environment in which we choose based on the idea that decision making is affected by how choices are framed.
EX: menus, dividers, Amazon

Question 3

What is the default choice?

Answer 3

The option that results when one does not do anything.

Question 4

What causes default choice?

Answer 4

Caused by status quo bias, endowment effect, and loss aversion.

Question 5

What is restricted choice?

Answer 5

Does not ban behavior outright, but restricts where and how a behavior can occur.

Question 6

What causes restricted choice?

Answer 6

Bounded rationality leads to choice paralysis
EX: speed limit, voting age

Question 7

What is a mandated choice?

Answer 7

Requires that an option be made but does not mandate a particular choice.
EX: voting in AUS

Question 8

What is libertarianism?

Answer 8

Maximizes autonomy and political freedom

Question 9

What is paternalism?

Answer 9

Authority restricting freedom and responsibilities to subordinate them in their supposed best interests.

Question 10

What is libertarian paternalism?

Answer 10

NUDGE THEORY

the idea that it is possible to affect behavior while also respecting freedom of choice