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…

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…

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…