Lectire 4 - Choice architecture Flashcards
On what depends how active system II is?
Depends on the individual
Depends on the situation - time pressure, psychological stress, cognitive load (not only our pool but also external factors)
What is the affect heuristic?
When we form a reaction to certain stimuli, we develop an affect to that reaction.
(People have the intuition that risk and benefits are negatively correlated).
How does time pressure impacts heuristic?
Time pressure makes System 2 less likely to intervene => therefore time pressure increases intuitive reactions.
What is the idea of choice architecture?
We make decisions in a certain context and the way context is organised can influence the way we make decisions. Some architectures are conducive to good decisions, while others are not. (i.e. being tired can undermine expertise) System I prevailing System II.
What are the three pillars of choice architecture?
Defaults
Social norms
Precommitment
Why do defaults matter?
People are less likely to change defaults and their respective given options than opting out to change the default to achieve the same these given options.
Why do defaults work?
Endorsement (thinking that maybe the default is the right suggested option)
Ease
Loss aversion (endowment)
How do social norms influence decisions?
We use other people’s reference points to make our decisions.
What is present bias?
Preferring to get something smaller now, rather than something bigger later on.
Easier to sacrifice things in the future (later vs. more later) compared to the present (getting something smaller now)
What is pre-commitment?
The idea that in the moment we know what is best for us, we commit ourselves to do what is right for us and it feels harder for system I to intervene. However, system I can still intervene in our rational decisions if we lack willpower.
What is pre-commitment?
The idea that in the moment we know what is best for us, we commit ourselves to do what is right for us and it feels harder for system I to intervene. However, system I can still intervene in our rational decisions if we lack willpower.
What does nudge mean?
Nudge - A deliberate change in choice in order to stimulate a particular outcome
when it comes to choice architecture, we can influence choosing one option over another (not forceful).
What does the compromise effect mean?
When presented with 3 options, people choose the middle one.
What are the four dimensions of nudging? Ly, Mazar, Zhao & Soman, (2013)
1) Boosting self-control (what you want to do vs what you actually do) vs desired behaviour (promoting a latent or non-existent behavioural standards where you increase the salience of these standards)
2) Externally imposed vs self-imposed - nudges done by someone else or nudges by you
3) Mindful vs mindless nudges - individuals make more controlled decisions vs decisions that are done under framing, anchoring etc.
4) Encourage vs discourage
- encouraging - facilitate implementation or continuation of a desirable behaviour
- discouraging - making it more diffuicult to engage in a particular bad behaviour;
What are the ‘‘bottlenecks’’ before nudging?
Factors preventing individuals to follow through their intentions (good starting point of nudging)
