inertia

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The Three Laws of Human Behavior

Human behavior is remarkably complicated. And yet, just as Newton's laws of motion distill three fundamental truths about the physical world, the three laws of human behavior describe three fundamental truths of human behavior: People tend to stick to the status quo unless the forces of friction or fuel push us them off their path; behavior is a function of the person and their environment; every decision includes tradeoffs and the potential for unintended consequences.

Nudge Action: Overcoming Decision Inertia in Financial Planning Tools

Robo-advisors help investors deal with the complexity of the stock market. However, users of these new decision support systems are not immune to decision inertia – repeating supoptimal investment strategies regardless their negative financial consequences. I investigate two possible nudges to help user overcome decision inertia in robo-advisory environments.

Supporting Decision-Making under Uncertainty: Nudging, Boosting or Both?

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?

Big Data Is Nudging You

Slow to hit the purchase button? Here’s how you may be nudged to buy.

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