you're reading...

Notes of [Nudge: improving …] by Thaler & Sunstein (2)

  • That does not mean something is wrong with us as humans, but it does mean that our understanding of human behavior can be improved by appreciating how people systematically go wrong.
  • Two kinds of thinking:
    • Automatic System: is rapid and is or feels instinctive, and it does not involve what we usually associate with the word thinking;
    • Reflective System is more deliberate and self-conscious.
  • The “heuristics and biases” approach to the study of human judgement – there are three rules of thumb:
    • Anchoring. You start with some anchor, … and adjust in the direction you think is appropriate… The bias occurs because the adjustments are typically insufficient.
    • Availability heuristic helps to explain much risk-related behavior, including both public and private decisions to take precautions… The pervasive problems are that easily remembered events may inflate people’s probability judgments, and that if no such events come to mind, their judgments of likelihoods might be distorted downward.
    • Representativeness. When asked to judge how likely A belongs to category B, people (and especially their Automatic Systems) answer by asking themselves how similar A is to their image or stereotype of B…
  • Unrealistic optimism is a pervasive feature of human life; it characterizes most people in most social categories.
  • … people do not assign specific values to objects. When they have to give something up, they are hurt more than they are pleased if they acquire the very same thing.
  • In many contexts defaults have some extra nudging power because consumers may feel, rightly or wrongly, that default options come with an implicit endorsement from the default setter, be it the employer, government, or TV scheduler.
  • The picture that emerges is one of busy people trying to cope in a complex world in which they cannot afford to think deeply about every choice they have to make. People adopt sensible rules of thumb that sometimes lead them astray. Because they are busy and have limited attention, they accept questions as posed rather than trying to determine whether their answers would vary under alternative formulations.

About Xiang 'Anthony' Chen

Making an Impact in Your Life


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Twitter Updates

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

%d bloggers like this: