Heuristics play an important role in daily judgments and decision-making, but a scientific debate has been ongoing as to whether heuristics result in systematic errors or make us smarter. Both approaches have resulted in tools to support decision-making. Nudges address systematic errors and biases, while boosts support informed decision-making under uncertainty. But can these two opposing approaches be integrated into one framework?
Unarranged overdrafts are financial products which help personal current account holders deal with outstanding balances or declined payments. However, consumers have the tendency to use these products too often, underestimating their negative financial consequences. Concerned by their financial well-being, the Financial Conduct Authority in the United Kingdom has begun to address the issue through the application of nudges.
All’s Well That Ends Better: The Need for an Emotionally Rewarding Finish Leads to Risk Taking at the End
New research shows how our motivational need for an emotionally rewarding ending affects decision-making.
The official launch of the Behavioral Economics Guide 2018 took place on 13 September 2018 in London, UK. Here’s our write-up of the event.
Can multiple social nudges be combined to achieve behavior change in electricity consumption? Find out in this post.
Reviewing two A/B tests from our current series of experiments aimed at increasing participation in online surveys using samples from customer databases.
Just released: the fifth annual Behavioral Economics Guide with contributions from five continents.
New research shows that being similar to a previous winner can have radically different effects on people’s participation likelihood in sweepstakes – it all depends on the attributions people make for the winning outcome.
A frequent misconception we hold is believing that what makes food healthy or unhealthy is the number of calories it contains. We know that soda is unhealthy and has a lot of calories and that chamomile infusion is healthy and does not have a lot of calories.
People's failure to act is an important problem discussed in behavioral economics and finance. But inappropriate action can also be detrimental. Find out more about the action bias in this post.