A choice architect - Deepstash
Behavioral Economics, Explained

Learn more about personaldevelopment with this collection

How to make rational decisions

The role of biases in decision-making

The impact of social norms on decision-making

Behavioral Economics, Explained

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A choice architect

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.

279

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Intuitive and reflective thinking

Intuitive and reflective thinking

  • Intuitive and automatic: This kind of thinking is quick and feels instinctive. You duck when a ball is thrown at you unexpectedly.
  • Reflective and rational: This thinking is deliberate and self-conscious. You use this system when you ha...

272

1.34K reads

The need for nudge theory: the Japanese example

Japanese train stations use nudge theory.

  • Blue lights improve the mood of commuters and reduce suicide attempts.
  • The door closing jingle lighten the highly stressed peak hour commute.
  • A high-frequency tone at station entrances reduce teenage loiteri...

319

1.63K reads

The nudge theory

The nudge theory

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 choi...

320

2.33K reads

Why people comply when they are nudged

Why people comply when they are nudged

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, employe...

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damien_i

"Imagination is more important than knowledge." - Albert Einstein

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The privilege to have a choice

The burden of choice is also a privilege. So many people in the world would kill to have more options and the freedom of choice, yet those who get it and when they have too many choices, they feel burdened.

The burden also comes from the increased effort re...

Choice-confirmation bias

When people can make a free choice, they embrace positive or negative outcomes that confirm they were right.

Studies show that this tendency persists in both poor and rich conditions. This means the brain is primed to learn with a bias linked to our freely chosen actions. The brain le...

Control and Choice

“The chief task in life is simply this: to identify and separate matters so that I can say clearly to myself which are externals not under my control, and which have to do with the choices I actually control. Where then do I look for good and evil? Not to uncontrollable externals, but within myse...

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