Photonomics
What are Nudges and Choice Architecture?
A nudge is a subtle change in how choices are presented to influence behavior without restricting options. Choice architecture refers to the design of different ways in which choices are presented to people, and how the design impacts decision-making. These techniques help guide people toward better decisions while maintaining their freedom to choose.
Key Concepts of Nudges & Choice Architecture
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Defaults
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📝 People tend to stick with pre-selected options.
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Example: Automatically enrolling employees in a retirement savings plan increases participation, as most won’t opt out.
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Framing Effects
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🖼️ The way information is presented affects decision-making.
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Example: Presenting surgery success as a 90% survival rate sounds better than saying it has a 10% failure rate, even though both mean the same thing.
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Opt-In vs. Opt-Out
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🔄 People are more likely to stick with a default option if they need to opt out rather than opt in.
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Example: Organ donation rates are higher in countries where people are automatically enrolled and must opt out, compared to countries where they must opt in.
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How Do Nudges Work?
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Step 1: Present a default option (e.g., automatically enrolling in a program).
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📝 For Defaults: Most people stick with the pre-selected choice.
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🔄 For Opt-Out: People tend to go with the default if they have to make an effort to opt out.
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Step 2: Use framing to affect how people perceive choices.
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🖼️ Framing positive outcomes in a favorable way increases the likelihood of selection.
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Step 3: Behavioral insights help you structure the choices to guide better decisions without restricting freedom.
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Nudges & Choice Architecture
Nudges
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Defaults
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📝 Stick to pre-selected options
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Framing Effects
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🖼️ The way choices are presented influences decisions
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Opt-In vs. Opt-Out
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🔄 More likely to stick with a default when opting out
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