Behavioural

• Utility


  Satisfaction or welfare someone gains from consuming a good or service
• Marginal utility


  Additional welfare or satisfaction gained from consuming one extra unit of a good or service
• Asymmetric information


  When one party to a market transaction. Possesses Less information relevant to the exchange than the other
• Behavioural economics


  Method of economic analysis that shows insight to human behaviour and people make choices
• Bounded rationality


  When making decisions individuals have limited information and time
• Bounded self control


  People have limited self contr to act rationally in their own interests
• Rules of thumb


  Thinking shortcuts which help when making sensible decisions on limited information
• Availability bias


  When people are to reliant on past experiences when making judgements currently
• Anchoring


  When people rely to heavily on the first price of information they see and use it for future decisions
• social norms


  patterns of behaviour considered acceptable by society
• Nudges


  Factors which encourage people to think and act in a certain way, try to shift a group into acting in away which matches social norms
• Altruism


  Concern for the welfare of others
• Fairness


  Quality of being impartial or free from favouritism
• Choice architecture


  A framework showing different choices to consumers and its impact on decision making

  • guide people to better choices
  • Layout of design can affect choices
• Framing


  How something is presented influences choices made

  • influenced by context
  • Can be missleading
• Default choice 


  An option automatically selected unless you specified an alternative

  • can improve social welfare by having long term interests as the default
• Mandated choice


  People sometimes by law to make a decision

  • work best with yes/no choices
• Restricted choice


  Offering limited choice of options so it's easier to consume the information and leader to better decisions