Helping people make better choices — Nudge Theory and Choice architecture
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Behavioral economists show that when humans make quick decisions under pressure, it is based mostly on intuition. They are unconsciously guided by biases and psychological fallacies.
The nudge theory suggests making subtle interventions to nudge people to make certain choices without restricting them. Putting the fruit at eye level counts as a nudge.
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The task of a choice architect is to organize the context in which people make decisions.
Changing the context in which people make choices can make desired behaviors easier to accept.
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Japanese train stations use nudge theory.
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Biases are hardwired and difficult to change. To change behavior, attention is not paid to countering the problematic thoughts, judgments, or predictions. Instead, it has been directed to changing the behavior in the form of incentives or "nudges."
For example, employers have been able to nudge employees into contributing to retirement plans by making saving the default option; you have to actively take steps to not participate.
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