Theme 1 economics 1.3

• What are behavioral nudges an alternative to?

  Taxes and subsidies
• What are some criticisms of behavioral economics interventions?

  • Encourages paternalism in government policies
  • Focuses too heavily on consumer vulnerabilities
  • May imply consumers are not rational
  • Limited effectiveness on deep-rooted issues
• Why might behavioral economics be seen as paternalistic?

  It nudges behavior through government policies
• What impression can behavioral economics give about consumers?

  That consumers are not rational
• How might consumers operate rationally according to the text?

  By using well-practiced rules of thumb
• What are the limits of nudge theory?


  Effective for minor behaviors, not deep issues
• What are some examples of behavioral nudges?

  • Banning smoking in public places
  • Banning takeaways near schools
  • Higher taxes on cigarettes and fuel
  • Vouchers for healthy behavior choices
• What is an example of a financial disincentive?

  Higher taxes on cigarettes
• How can information provision influence behavior?

  By providing calorie counts on menus
• What is an example of changing the environment to influence behavior?

  Designing buildings with fewer lifts
• What does making salad a default side option illustrate?

  Changing the default choice to influence behavior
• How can norms influence consumer behavior?

  By providing information about others' actions
• What are some methods of influencing choice?

  • Banning unhealthy options
  • Providing financial incentives
  • Changing defaults
  • Using social norms
• What is the role of pre-commitment in decision-making?

  It helps cement a choice
• Why do we value self-assembly furniture more?

  We are more likely to value our choices
• What is an example of a commitment app?

  Apps for dieting
• How can cash incentives help with smoking cessation?

  They provide motivation to quit
• What does "chunking" refer to in drug treatment?

  Breaking down treatment into manageable parts
• How can lowering barriers encourage weight loss?

  By making healthy choices easier
• What is the purpose of using checklists in hospitals?

  To reduce unnecessary x-rays
• What is choice architecture?

  Designing choices to encourage healthy eating
• What are some cognitive biases mentioned in the text?

  • Asymmetric framing
  • Availability bias
  • Anchoring
  • Priming
  • Framing
• What does asymmetric framing involve?

  Including inferior or expensive options
• What is availability bias?

  Judging likelihood by ease of recall
• How do consumers typically perform risk assessments?

  They often overestimate certain risks
• How does public commitment affect willingness to change?

  It decreases willingness to change
• What is an example of a commitment signal?

  Using an expensive gift
• How does framing affect decision-making?

  It generates new responses through context
• What is an example of framing in social networks?

  Privacy settings presentation
• How can presumed consent affect organ donations?

  It can increase donation rates
• What is the effect of anchors in pricing?

  They set mental reference points for value
• How do subliminal cues influence behavior?

  They prime us to behave in certain ways
• What is the impact of labeling products as premium?

  It affects consumer expectations
• How does an honor code affect plagiarism rates?

  It may reduce instances of plagiarism
• What do students sign at university related to ethics?

  Honor code
• What does framing a question do?

  It generates a new response by changing context
• How can privacy settings on social networks be framed?

  To influence user perceptions and choices
• What is an example of presumed consent in healthcare?

  Human organ donations
• How does framing affect referendum questions?

  It influences how voters perceive the options
• What is an anchor price in real estate?

  Offer price for houses on sale