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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dissonance
Posted in cognitive biases

What happens in Cognitive Dissonance

In 1957, Leon Festinger put forward the cognitive dissonance. What does “dissonance” mean? The word, “dissonance” refers to either a “lack of agreement” or an “inconsistency”. In cognitive dissonance, we are entering into an internal clash among different cognitions – beliefs, thoughts, or attitudes. Let us be clear this concept…

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social norms
Posted in cognitive biases

False consensus effect: We overestimate sometimes

We overestimate, sometimes. We assume there are more people who agree with what we agree. But, in reality, this number becomes fewer than we assume. We overestimate. This situation is identified as the ” false consensus effect” It is a strong cognitive bias. This effect came to light with Ross…

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S shaped curve with a horizontal and a vertical line
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; These examples appear in Daniel Kahneman and Amos Tversky’s 1979 paper on prospect theory….

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