Nudging Theory

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Behavioral Economics is becoming increasingly popular as a way of improving public health . Economic theories mostly assumed that agents are rational utility maximizer, also known as homo economics. Behavioral economics is a field that gives an understanding of why the individuals’ behavior is not rational and is influenced by self-control and temptation when making a decision. The public has an attendance of making unhealthy food choices, even though they want to be healthier. They do not give full attention and rational consideration when they make a choice; instead the public often makes impulsive tendencies. People has a bounded self-control, they intense to plan something and have a different behavior in the long term. When people make…show more content…
Nudging is being described as; “Any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives” . The best way to see if nudging would work on the public is through experiments. I am critically reviving three different kinds of experiment, to see the different kind of nudging and the effect of the nudge toward the individuals. The first experiment is conducted in a lunchroom, to nudge the students toward healthier food choices. The second experiment is conducted in a train stations snack shop. And the third experiment is to see how nudging works at a buff and to see the effect of the first food principle. When the public get nudged toward healthier food choice, are we sure that they want to be nudged and get an improving welfare? Is nudging ethical? Does the public get better off, maximizing utilities and welfare…show more content…
When βt be present bias. Because of the lack of self-control, the individuals do not get a maximized utility. 2.2. Nudging The individuals get into their temptation by choice overload, by simplifying their chooses would help them to make better choices. Simplifying the chooses for the individuals can be helped be “choice architects” by physical and social changing the environment or making some small design changes . When using choice architects, the options that are being presented to the individuals, such as that the healthy choice becomes the default, whereas making unhealthy choices requires active decision-making. This can be done by getting the healthy food more accessible than the unhealthy food. Nudges work by appealing to people’s cognitive biases, gently steering decisions to the option that for example appears to be the ‘default’, is most salient or most straightforward . By appealing to the cognitive bias, get more self-control by restraining certain behaviors and emotions like temptations and impulses. Nudging does not forbid any options or make economic
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