PERSUASION 4: NUDGING

Question 1

What is Thaler and Sunstein’s (2006) definition of a ‘nudge’?

Answer 1

….. Any aspect of the choice architecture that alters people’s behaviour in a predictable. way without forbidding any options or significantly changing economic incentives.

Question 2

What are characteristics of a nudge?

Answer 2

• Must be easy and cheap to avoid
• Cannot be a rule or mandate
• They use choice architecture to influence people to make better decisions, often by improving people’s heuristics.

Question 3

How do nudges work?

Answer 3

Heuristics (Tversky & Kahnman, 1974)

• Systematic (Slow, deliberate)
• Heuristic (Fast, automatic, Short cuts)

Choice architecture

Question 4

What is choice architecture?

Answer 4

• How is the choice organised

- What context is it presented on?

Question 5

Is choice architecture effective?

Answer 5

Can have a big effect on choices

Question 6

What is ‘mapping’ of choices?

Answer 6

• How well can people make choices that are in their best interests?
• Do people understand options?
• link between options and outcomes?
• Do heuristics lead to good choices?

Question 7

How do you promote good mapping?

Answer 7

• Present info and choices clearly
• Provide feedback
• Provide useful default options

Question 8

How may someone present information and choices clearly?

Answer 8

• Help people understand their options to pick the best one

- Use of systematic processing and useful heuristics

Question 9

Is feedback useful in choice architecture?

Answer 9

Feedback helps

• Will I be happy with this choice?
• Did I even realise what choice I was making?
• Info about good vs bad outcomes for choices

Question 10

How can default settings be useful in choice architecture?

Answer 10

• ‘status quo’ bias

- availability heuristic

Question 11

How does psychological science help to use choice architecture to help people make better decisions and improve people’s use of heuristics?

Answer 11

• Knowledge of heuristics
• Understanding choice architecture
• Effect of context and structure on choice

Question 12

How does establishment of social norms improve choice architecture?

Answer 12

’ What should I do in this situation’

• social pressure
• eg. hotel towels

Question 13

What is centrality bias/ edge. aversion?

Answer 13

People often avoid the edges when choosing from arrays

Question 14

Why do people avoid edges?

Answer 14

Make inferences about the best response

• Probabilistic Mental Models
• “Hide and seek tasks” - Middle = best hiding place
• Edges, corners, exact centre perceived as prominent locations

Question 15

What is a solution to centrality bias/ edge aversion?

Answer 15

Eliminate position bias by modifying the shape of the array so there are no edges/corners and no basis for perceived better hiding places.

Question 16

Which of the following is not an example of a nudge?

A) placing healthy food options near a checkout at a supermarket
B) placing healthy food items first on the menu
C) placing healthy food options last on a menu
D) increasing taxes in unhealthy foods

Answer 16

D

Question 17

Which of the following is an example of the status quo bias? Choosing a university course……

A) based on subjects you have previously enjoyed
B) at random
C) based on subjects you have previously succeeded at
D) that is automatically suggested to you as a default option

Answer 17

D

Question 18

Flies were used to reduce cleaning costs at Schiph airport in Amsterdam, true or false?

Answer 18

True