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 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? Created with Sketch. Whether nudging yourself or someone else, it’s helpful to use reminders and prompts on a regular basis to keep target behaviors top of mind. Reframing negative thoughts as positive ones can boost motivation, and reducing the accessibility of temptations can prevent backsliding. Additionally, social pressure can be an effective tool to increase accountability for reaching one’s goals. Is nudging ethical?