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How to make rational decisions
The role of biases in decision-making
The impact of social norms on decision-making
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Japanese train stations use nudge theory.
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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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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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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...
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2.34K reads
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Intuitive thinking is described as automatic, fast, and subconscious. Analytic thinking, on the other hand, is slow, logical, conscious and deliberate. Analytic and intuitive thinking are not opposites. They are complementary and can work in concert.
Even groundbreaking scient...
Daniel Kahneman, Nobel prize winner, explains how our mind has 2 modes:
This is the ability to perform a behavior without thinking about each step, which allows the pattern to become automatic and habitual.
Because when you begin practicing a new habit it requires a lot of conscious effort to remember to do it. But after a while, your new habit becomes a...
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