Title: Behavioral Economics | Psychology Today
Headings: Behavioral Economics
Behavioral Economics
Contents
Understanding Behavioral Economics
What is the difference between traditional economics and behavioral economics?
Why is behavioral economics important?
Do economic incentives to change behavior work?
Irrationality and Behavioral Economics
What are some examples of bias in behavioral economics?
What is the main drawback in using heuristics to solve problems?
What are some examples of heuristics that lead to irrational choices?
Does having too many options lead to poor decision-making?
How Can You Influence People's Behavior?
What is nudge theory?
What is an example of a nudge?
What are some nudging techniques?
Is nudging ethical?

Content: What is nudge theory? Created with Sketch. In the book Nudge, Richard Thaler and Cass Sunstein define a “nudge” as a policy that influences people to make more desirable decisions via psychological, environmental, and social cues. Examples include putting healthy food at eye level instead of junk food. People still have free will —nothing is banned or mandated—but it’s easier to do what’s best for themselves in the long run. What is an example of a nudge? Created with Sketch. One type of nudge is a scarcity appeal, which uses limited time offers or limited quantities to convince customers to stop procrastinating or deferring a decision and make a purchase. This works, because consumers are often afraid they will regret not buying something in the future. What are some nudging techniques?