nudge
“Nudge”
Improving Decisions About Health, Wealth and Happiness
Alvaro Ivan Cabrera M
Executive Summary
Foundational Economics for Managers
Dr. Brian Kench
The University of Tampa
Master of Business Administration
September, 19th 2014
Background
All human beings make mistakes of judgment systematically. The good news is that we can exploit this tendency in a productive way. To this end, it suffices to identify the factors that influence our decisions, we help others to make better decisions and think about the "architecture" of our choices.
Thaler and Sunstein examined our choices, biases and cognitive limits from different perspectives in order to improve our health, our investments and our environment. For that reason, I will expose the main facts treated along the five first chapters and also a reflexion about two important aspects mentioned in Part IV and how they have something in common with my own experience.
Humans and Econs
A nudge is similar to a hint. Humans are faced with multiple choices every day, to make these choices most run on automatic and/or follow basic rules of thumb. A nudge is something that without being bossy gives you a hint of which choice may be best. When designing an environment or system understated cues can greatly influence the choices people make. Choice architecture tries to harness this power for the greater good without infringing on individual freedom.
A nudge is “any aspect of choice architecture that alters people’s behaviour in a predictable way without forbidding any option or significantly changing economic incentives.” For example: food display order in cafeterias pattern of consumption, simply putting fruit at eye level increases the likelihood people will eat it.
Very often decisions would be made differently if the individual paid full attention, possessed complete information, unlimited cognitive abilities and complete self-control.
Improving Decisions About Health, Wealth and Happiness
Alvaro Ivan Cabrera M
Executive Summary
Foundational Economics for Managers
Dr. Brian Kench
The University of Tampa
Master of Business Administration
September, 19th 2014
Background
All human beings make mistakes of judgment systematically. The good news is that we can exploit this tendency in a productive way. To this end, it suffices to identify the factors that influence our decisions, we help others to make better decisions and think about the "architecture" of our choices.
Thaler and Sunstein examined our choices, biases and cognitive limits from different perspectives in order to improve our health, our investments and our environment. For that reason, I will expose the main facts treated along the five first chapters and also a reflexion about two important aspects mentioned in Part IV and how they have something in common with my own experience.
Humans and Econs
A nudge is similar to a hint. Humans are faced with multiple choices every day, to make these choices most run on automatic and/or follow basic rules of thumb. A nudge is something that without being bossy gives you a hint of which choice may be best. When designing an environment or system understated cues can greatly influence the choices people make. Choice architecture tries to harness this power for the greater good without infringing on individual freedom.
A nudge is “any aspect of choice architecture that alters people’s behaviour in a predictable way without forbidding any option or significantly changing economic incentives.” For example: food display order in cafeterias pattern of consumption, simply putting fruit at eye level increases the likelihood people will eat it.
Very often decisions would be made differently if the individual paid full attention, possessed complete information, unlimited cognitive abilities and complete self-control.