Posted in nudging

Nudge with the opt-out default option

Think of a situation where you are automatically enrolled for organ donation when you obtain your vehicle license; however, you have the option to “opt-out”. This is a classic “opt-out” default option. Here, you are being nudged for organ donation. Its counterpart option is “opt-in”. In that situation, the default…

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Posted in cognitive biases

False consensus effect: We overestimate sometimes

We overestimate, sometimes. We assume more people agree with what we agree upon. But, often, that is not the reality. We might be in ” false consensus”. We overestimate. The subject experts call it the ” false consensus effect” It is a strong cognitive bias. This effect came to light…

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Posted in Behavioral theories

Prospect theory: How do we make choices?

Updated on March 25, 2023 We are not rational when we make choices under risk and uncertainty. This is because we prefer certainty. We do not want to live in uncertainty. Look at the following scenarios; The following examples appear in Daniel Kahneman and Amos Tversky’s 1979 paper on prospect…

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