Nudges In Decision Making

Question 1

Behavioral nudges

Answer 1

Small changes to the choice environment that are designed to influence decisions in a predictable way

Question 2

Behavioral nudges do not

Answer 2

Forbid any options

Question 3

Behavioral nudges are not

Answer 3

Compulsory or expensive

Question 4

Examples of behavioral nudges

Answer 4

Plastic bag charge, sweets at the checkout

Question 5

How do nudges influence behavior in a predictable way?

Answer 5

Heuristics and biases are exploited to alter decisions

Question 6

Nudges cannot counteract

Answer 6

Strong preferences

Question 7

Simple heuristics

Answer 7

Mental shortcuts for solving problems

Question 8

Heuristics work well most of the time but can lead to

Answer 8

Unwanted biases

Question 9

Unwanted biases

Answer 9

Deviations from optimal choice

Question 10

Our ____ also makes shortcuts

Answer 10

Vision

Question 11

Because the brain doesn’t process every photon of incoming light, we use

Answer 11

Shortcuts

Question 12

We use context when

Answer 12

Making decisions

Question 13

Examples of heuristics

Answer 13

Representativeness, availability, anchoring and adjustment, framing and loss aversion

Question 14

Anchoring and adjustment

Answer 14

Anchor on information that comes to mind and adjust until a plausible estimate is reached

Question 15

Self generated (internal) anchors

Answer 15

When our frame of reference of our estimation is based on our own experience

Question 16

Only —— anchors are bad

Answer 16

Uninformative

Question 17

Framing

Answer 17

Our decisions are always made in context, different ways of framing the same question can change the answer

Question 18

Loss aversion framing example

Answer 18

Losses loom larger than gains

Question 19

Fat free vs fat full framing example

Answer 19

91% fat free sounds healthier than 9% fat

Question 20

Endowment effect

Answer 20

We value something more than we have it in comparison to acquiring it

Question 21

Endowment effect examples

Answer 21

Participants who were given mugs wanted more money to sell them than participants who were initially offered mugs to purchase

Question 22

Examples of nudging

Answer 22

Defaults, social nudging, structural changes, labeling, framing

Question 23

Defaults

Answer 23

When an option is pre selected for us

Question 24

Social nudging

Answer 24

Elicit social comparisons with others

Question 25

Structural changes

Answer 25

Portion sizes, location of items, menu order

Question 26

Labeling

Answer 26

Highlighting specific info, like calorie count

Question 27

Pitfalls of defaults

Answer 27

Choosing the correct default can be very difficult

Question 28

With social nudges people overestimate ____ and underestimate _____

Answer 28

Rate of undesirable behavior, rate of desirable behavior

Question 29

Boomerang effect

Answer 29

Participants were told if their energy use was above or below average, and those who were below the average used more energy afterwards

Question 30

The boomerang effect shows that it is

Answer 30

Important to highlight the social importance of desired behavior

Question 31

Backfire

Answer 31

Nudges can have the opposite effect

Question 32

Offset

Answer 32

Nudge initially works, but rebound and spillover effects on other behavior eliminates benefit

Question 33

Richard Thaler asked us to

Answer 33

Nudge for good

Question 34

In practice nudges are often used for

Answer 34

“Evil”

Question 35

Dark nudges are also called

Answer 35

Sludges

Question 36

Sludges benefit the

Answer 36

Nudger

Question 37

Example of sludges

Answer 37

Sign up online but cancel over the phone, pre selected defaults and anchors, default Netflix plan is the most expensive

Question 38

Some cookies online aren’t good because of the way in which they

Answer 38

Use your data

Question 39

The cash machine nudges you by

Answer 39

Setting up only two initial options

Question 40

Tipping has a nudge in creating a

Answer 40

Default tip

Question 41

Computers are trying to nudge us

Answer 41

By suggesting we back things up with a Dropbox

Question 42

Nudges are a form of soft paternalism/

Answer 42

Government meddling

Question 43

Do nudges preserve freedom?

Answer 43

That is, can we ignore a judge if we disagree with it?

Question 44

Nudges are not always

Answer 44

Noticed

Question 45

Nudges are unavoidable, Asher & McKenzie (2006)

Answer 45

Subjects were asked to pour water from one cup to the other and set a half full cup at the edge of the desk

Question 47

In the Sher & McKenzie experiment,

Answer 47

69% of subjects furnished the initially cup when a half empty was requested, whereas only 46% of subjects furnished the initially full cup when a half full cup was requested