Copy link. Behavioural Economics - Choice Architecture. Choice architecture refers to a scenario in which the environment in which someone must make a decision has been carefully designed to try and influence that decision. There is a variety of ways in which the “environment” can be designed.
Also question is, how is choice architecture related to behavioral economics and mechanism?
How is choice architecture related to behavioral economics and mechanism design? 1. (Correct) Choice architecture is the context in which decisions are made. Behavioral economists have discovered that, contrary to the assumptions of traditional economics, choice architecture affects people's choices.
One may also ask, what does default choice mean?
The default choice or default option is the option that a consumer “selects” if he or she does nothing. Studies have shown that consumers rarely change the default settings. Therefore, if the default option or setting is changed, then consumer behaviour will change.
What is an example of a nudge?
Examples of nudges Often it is 'drinks, extras and deserts' which are the most profitable part of the meal. If you buy a coffee, and a barista offers a pastry as well – we are more likely to buy the pasty when it is offered as a suggestion. Product placement.
What is the nudge?
The Nudge is a planner app packaged as an SMS subscription service | TechCrunch.