Week 11

Question 1

Human Biases

Answer 1

Cognitive shortcuts that influence decision-making, often irrationally. Examples: status quo bias (stick with default), loss aversion (fear of loss > desire for gain), and optimism bias (underestimating risks).

Question 2

Choice Architecture

Answer 2

The way choices are presented affects decisions. Good design (like placing healthy food at eye level) can guide behavior without restricting freedom.

Question 3

Social Norms

Answer 3

Unwritten rules about acceptable behavior. Highlighting what others do (e.g., “most neighbors recycle”) can motivate pro-environmental actions.

Question 4

Nudging (Definition, Examples, Organizations, Ethics)

Answer 4

Definition: Subtle interventions that steer choices while preserving freedom.

Examples: Defaults (opting into green energy), reminders, feedback.

Organizations: Governments (e.g., UK’s Behavioural Insights Team), NGOs, utilities.

Ethics: Debated—can be manipulative if not transparent or in the public interest.