Nudges are ways of influencing people's choices without forbidding options. The book discusses how human psychology affects decision making in predictable ways. When making decisions, people have both a rational "Spock" and emotional "Homer" influencing them. Nudges aim to help the rational mind overcome biases by designing choices that provide better feedback, structure complex options, and use defaults and incentives to encourage better outcomes. The document provides examples of how rearranging cafeteria food or using images on urinals can nudge behavior in predictable ways.
This is a presentation that covers the basic concepts of the book Nudge, by Richard Thaler and Cass Sunstein. We read this book at our UX Book Club meeting, and I presented an introduction to it at the LA IxDA meeting.
This deck accompanied Kelly Baron's SXSW talk on 3/13/17. Nudge theory is about hacking human nature using subtle, context-driven interventions. We all sometimes buy into the shampoo commercial dream that our products can make us into better people, but what if that were true?
Thanks to IoT, we’re designing products that make and break our habits. We applied nudge theory to our healthcare wearable, Under Currents, to solve billions of dollars’ worth of medical errors and save lives. When common sense fails, common sensors help us be the best version of ourselves.
Join Kelly Baron, a business designer from Fjord Austin, as she talks about how to apply nudge theory theory to digital experiences.
The nudge theory has received great attention in the last years but the majority of the applications remain limited to academic journals and lab tests. In a guest lecture at the Norwegian School of Economics, Liveworker Anne van Lieren will show students how we apply proven behavioural principles and nudges to real-world cases. In the lecture she will discuss several client cases to illustrate our best practices.
This is a presentation that covers the basic concepts of the book Nudge, by Richard Thaler and Cass Sunstein. We read this book at our UX Book Club meeting, and I presented an introduction to it at the LA IxDA meeting.
This deck accompanied Kelly Baron's SXSW talk on 3/13/17. Nudge theory is about hacking human nature using subtle, context-driven interventions. We all sometimes buy into the shampoo commercial dream that our products can make us into better people, but what if that were true?
Thanks to IoT, we’re designing products that make and break our habits. We applied nudge theory to our healthcare wearable, Under Currents, to solve billions of dollars’ worth of medical errors and save lives. When common sense fails, common sensors help us be the best version of ourselves.
Join Kelly Baron, a business designer from Fjord Austin, as she talks about how to apply nudge theory theory to digital experiences.
The nudge theory has received great attention in the last years but the majority of the applications remain limited to academic journals and lab tests. In a guest lecture at the Norwegian School of Economics, Liveworker Anne van Lieren will show students how we apply proven behavioural principles and nudges to real-world cases. In the lecture she will discuss several client cases to illustrate our best practices.
What is the Nudge Theory?
A mixure of beavourial economics, psychology, political theory, marketing and sales. Its the theory that considers how people make decisions – and how others impact them.
This presentation looks at behavioural nudges used by different businesses. Nudges are interventions that preserve freedom of choice but that nonetheless influence people’s decisions. Our decisions are often heavily affected by behavioural biases, instinctively we favour the default option
Choices are contextual and we are also deeply affected by social norms.
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Important concepts around how we all make decisions. This presentation introduces the work of Nobel prize winner Daniel Kahneman on Cognitive Biases, and helps you understand why we make errors in judgement, and how to look for signs you're about make one.
Aspiration, confidence, fear of failure and trust play a role in the B2B buying mindset. It sounds obvious, but avoidance of risk is a key component of business continuity and it’s easy to forget that B2B buyers are human beings, rather than rational decision-making robots. Brands need to invest time in understanding how their audience makes decisions if they are to influence them
Behavioural Economics content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Alternative Views of Consumer Behaviour
Behavioural Biases
Nudges
This is a short talk and workshop (30' + 90') to give a first introduction to design thinking. Gives theory foundation, notes a few different approaches, and then dives into one of them.
This presentation was first done at ImpactON / StartupChile evening in 2015.
A review of the behavioral economics concept of the paradox of choice where some choice is good, but too much choice creates paralysis and dissatisfaction
What is the Nudge Theory?
A mixure of beavourial economics, psychology, political theory, marketing and sales. Its the theory that considers how people make decisions – and how others impact them.
This presentation looks at behavioural nudges used by different businesses. Nudges are interventions that preserve freedom of choice but that nonetheless influence people’s decisions. Our decisions are often heavily affected by behavioural biases, instinctively we favour the default option
Choices are contextual and we are also deeply affected by social norms.
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Important concepts around how we all make decisions. This presentation introduces the work of Nobel prize winner Daniel Kahneman on Cognitive Biases, and helps you understand why we make errors in judgement, and how to look for signs you're about make one.
Aspiration, confidence, fear of failure and trust play a role in the B2B buying mindset. It sounds obvious, but avoidance of risk is a key component of business continuity and it’s easy to forget that B2B buyers are human beings, rather than rational decision-making robots. Brands need to invest time in understanding how their audience makes decisions if they are to influence them
Behavioural Economics content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Alternative Views of Consumer Behaviour
Behavioural Biases
Nudges
This is a short talk and workshop (30' + 90') to give a first introduction to design thinking. Gives theory foundation, notes a few different approaches, and then dives into one of them.
This presentation was first done at ImpactON / StartupChile evening in 2015.
A review of the behavioral economics concept of the paradox of choice where some choice is good, but too much choice creates paralysis and dissatisfaction
This is a house Magazine of Gopast for circulation amongst its associates. Coping up skills by Mr R Gopinath, Financial Derivatives by Mr R Gopinath and Article on the need of a professional insurance advisor by Mr Ankur Shah; Proud to be associated with Ms Payal Dave and Mr Arjun Shameer the passionate designers and the gallery of events at Gopast.
As humans, we never fail to think that we are highly intelligent beings, and that we are mentally superior than any other creatures found on Earth.
Well, that...... may be true.
However, we can be equally stupid and dumb too.
Worse still, we don't even realize it - in terms of how we can make erroneous judgments, decisions and choices, based on how our mind processes and filters information, as well as how our belief system works.
As intriguing and exciting this topic is to me, I find it difficult to illustrate the concepts involve, and that took me nearly 6 months to complete this work. (The Planning Fallacy in play?!) Throughout writing this deck, I've made a total of 8 major revisions before coming to this final piece.
I hope you'll find this deck both interesting and useful!
Guest lecture within the field of consumer behaviour prepared for the University of Antwerp (applied economics). I explore theories from (social) psychology to demonstrate our essential social nature. In the second part, these lessons are applied for a better new product development and communication.
Barry Ritholtz Presentation on Behavioral Economics (CFA Toronto 2013)Chand Sooran
A good introduction to key issues in behavioral economics from Barry Ritholtz in a presentation made to the CFA Toronto Group. Pithy, entertaining and informative.
As part of our book reading club in eBay, I did a talk about one of my favourites book "The Art of Thinking Clearly". Here are some snapshots from the book in my own words.
A compilation of proven distinctions on what makes a World-Class Presenter. Written by Eric Feng, Presentation Coach ( http://ericfeng.com ) and Designed by SlideComet ( http://slidecomet.com ). Enjoy!
http://mindpersuasion.com/
Most people would like to get rid of their ego. But it can be your greatest ally if you know how to make friends with it. Learn How: http://mindpersuasion.com/prosperity/
An appreciation of the ancient traders and Indigenous Bankers commercial merchants of Bengal and India before British colonization. The Marwadi Jain Family from Nagaur came to Murshidabad and became the Banker to Alvardi Khan of Bengal Nawabs. Fateh Chand Seth conspires against Siraj ud-dhaula of Bengal and supports the British army to dethrone the nawab of Bengal for his business prospects.
formal, informal communication, barriers to communication, effective communication, grapevine, rumors, gossips, personal, organizational, and semantic barriers of communication
Effective Communication in the organization, Barriers to Communication, personal barriers, cultural barriers, semantic barriers, organizational barriers
Types of Partners, Partner by Holding out, Mutual Agency, Contract of Agency, 3 Musketeers by Dumas, One for all, all for one, Merits of the Partnership in comparing with Sole Proprietory
Formal & Informal Communication, Effective Communication, Process of Communication, Barriers to Communication, Noise in the Communication, How to overcome barriers of Communication,
Types of Partners, Partnership Merits and Demerits, Partner by Holding out, Parter by estoppel, Registration of Partnership, The difference between a sole proprietorship and Partnership, features of Partnership act 1932, Mutual consent of Partners, Mutual agency
Hindu Undivided Family Business, Kartha, Copercenres, unlimited liability to Karta, Business ownership, the unique feature of Indian business professional communities
Best Indian Business Leaders, 6 best Leadership qualities, Sacrifice, Courage, leading, influencing, encouraging, Employer leadership qualities, Mrs. Meera H Sanyal, Ankita Bose is the co-founder and CEO of Zilingo, Microsoft without Bill Gates, Reliance Industries without Ambani's, Infosys without Narayana Murthy, Tata without J.R.D. Tata or Wipro without Azim Premji.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can I sell pi coins after successfully completing KYC
Introduction to nudge pgp1
1. An Introduction toAn Introduction to
NUDGENUDGE
Improving Decisions AboutImproving Decisions About
Health,Health, Wealth,Wealth, andand HappinessHappiness
byby Richard H.ThalerRichard H.Thaler && Cass R. SunsteinCass R. Sunstein
ProfessorProfessor Puttu Guru PrasadPuttu Guru Prasad VVITVVIT
4. An introduction to
Nudge•US economist Thaler wonUS economist Thaler won the
Nobel prizeNobel prize for his
contributions in the field of
behavioural economics,behavioural economics,
showing how human traitshuman traits
affect supposedly rationalrational
markets.
5. What is a nudge?
A nudgenudge is any aspect of the
design of a choicedesign of a choice (“choice(“choice
architecture”)architecture”) that altersalters
people’s behaviorpeople’s behavior in a
predictablepredictable way,
without forbiddingforbidding anything
or actually changingactually changing the
choice at all.at all.
17. Freedom of choice is best,
right?
•Many economistseconomists like to say
that we should present all
options to people, and letlet
them choosethem choose.
• The authors say this makes
the false assumptionfalse assumption that
almost all people, almost all
of the time, make choices
that are in their best interest
19. "Star Trek" T V Serial"Star Trek" T V Serial star ship USS EnterpriseUSS Enterprise mission
in space in the 23rd century. Captain James T. KirkCaptain James T. Kirk --
along with half- human/half-Vulcanhalf- human/half-Vulcan science officerscience officer
SpockSpock,
20. They are assuming that wewe are all like SpockSpock.
And like SpockSpock we always only choose the
most logical choicelogical choice.
However, while part of our mind really is likeis like
Spock,Spock,
we all have TWOTWO decision makers in our head whohead who
battlebattle it out for each decision –
our 1.SpockSpock (in scientific terms, our ReflectiveReflective
Cognitive SystemCognitive System) and but also
our 2.HomerHomer (Simpsons)(Simpsons) (Automatic CognitiveAutomatic Cognitive
System).System).
21. The Simpsons is an American animated sitcom created
by Matt Groening for the Fox Broadcasting Company. The
series is a satirical depiction of working-class lifeworking-class life,
epitomized by the Simpson family, which consists
of Homer,Homer, Marge, Bart, Lisa, and Maggie.
22. “Gut” basic feeling or
reaction without a logical
rationale
(Automatic Cognitive
System)
“Mind”
(Reflective Cognitive
System)
vs
.
Homer SimpsonHomer Simpson
Fictional characterFictional character
Star Trek TV SerialStar Trek TV Serial
Fictional characterFictional character
Mr. SpockMr. Spock
23. Here’s a classic example. Spock would
look at this image and see clearly that
the two tabletops are exactly the same
size. But most of us feel pretty sure
that the one on the left is longerleft is longer and
skinnier than the one on the right.
25. So the conclusion the authors
draw from this is that
SOMETHINGSOMETHING is always
influencinginfluencing your choices.
People are influenced by smallsmall
factorsfactors in the design of an
experience, so even if you
don’t consciously design youryour
choice architecture,choice architecture, it is still
there, affecting the actions of
the choosers.
28. Here’s another example.
In this cafeteria, SpockSpock
would only put food on
his tray that is good for
him, only taking as muchmuch
as he needsas he needs and only
what he can afford.
29.
30. So say you are designing a cafeteria layoutcafeteria layout.
What should you do? Ignore the fact that the
layout affects what people buy?
Randomly rotate the placement of foodsRandomly rotate the placement of foods?
Set it up to sell the most of the expensive
stuff?
Or set it up so people choose more healthypeople choose more healthy
foods?
31. The book encourages that last option with what they
call “libertarian paternalism”“libertarian paternalism” --
Nudging the userNudging the user (through placement, in thisthrough placement, in this
exampleexample) to make the best choice for his well being –
WHAT OUR SPOCK WOULD WANTWHAT OUR SPOCK WOULD WANT, while not
restricting choice at all.
They are not banning junk food, just making it less
likely that someone will choose it on their own.
35. When is our SpockSpock
particularly weakparticularly weak and
our Homer particularlyHomer particularly
strong.strong. This happens
predictably in the
following scenarios:
38. •I enjoyenjoy the benefit of this
donut now,donut now,
•I pay the costcost (to my
health, waistline) later.later.
•I enjoyenjoy coming home to a
cool housecool house because my AC
was running all day,
•I pay the costscosts (both bills
and environmental) later.later.
41. We get betterget better at
everything throughthrough
practice.practice.
If you had to optimize
your investments as
frequently you have tofrequently you have to
drive your car,drive your car, you’d
probably be better at it.
44. Think of the impact digital camerasdigital cameras
had on hobby photography, largely
because you can see right away what
your picture looks like.
Making investment decisionsinvestment decisions is
kind of like the old film photography
model.
You rearrange some stuff, and hope
when you go back to see the results
you can remember what you did and
extrapolateextrapolate what worked and what
didn’t.
45. 6.When it is hard to
imagine the possible
outcomes.
46.
47. Imagine ordering at a restaurant
from a menu in a language youlanguage you
do not understanddo not understand.
For many people, this is what it is
like to try to decide betweendecide between
investinginvesting in a “capital“capital
appreciation fund” vs aappreciation fund” vs a
“dynamic dividend fund.”“dynamic dividend fund.”
The language of the choicelanguage of the choice
selectionselection makes it very hard to
imagine what the options really
mean to you.
49. So we know that our gut,our gut,
our Homer,our Homer, has more
influence our decisions in
those types of situations.
Fortunately, he’s pretty
predictable,predictable, and
therefore relatively easy
to set up safeguardssafeguards
againstagainst..
54. Say I told you, “the
population of Chicago is 3
million.
What is the population of
Milwaukee?”
You might guess
something like 1 million.
55. If I instead told you, “The
population of Green Bay is
100,000.
What is the population of
Milwaukee?”
Most people guessed around
300,000. (The actual
population is around
580,000.)
58. We are much more scared of vividvivid
and easily imagined threatsand easily imagined threats (like
plane crashes or tornadoes), than
we are of mundane but much more
common dangers (like asthmaasthma
attacksattacks).
We are 20x more likely to die of
asthma attack than tornado, so if
we were purely rational, we’d be
20x more scared of asthma than
tornadoes.
60. Based on the beauty pageant
contestants you’ve seen in the media
lately, you might think that ALL ofALL of
them are dumb as a post. (That’sthem are dumb as a post. (That’s
not true.)not true.)
61. Another example: If you wore your
old hatold hat during two gamestwo games which
your team won, you might assume
that it’s a lucky hat,lucky hat, and that if youif you
don’t wear itdon’t wear it during the next game,
your team will losewill lose. (Sorry, there’s
no connection.)
67. It does seem that
someone who wearswears
this shirt might onlythis shirt might only
have been half ashave been half as
workedworked up about
getting the gun as he is
about losing it.
I will give up my Gun, When they pry
it from my cold , dead fingers
70. This XBox liveXBox live offer from
Microsoft is banking on people’s
personal inertia.inertia.
You get one month of the goldgold
service for $1service for $1, but then every
month after that it bills you
automatically at the full pricefull price.
71. 15.Framing Bias:
“10 out of 100“10 out of 100
die.”die.”vs.
“90 out of 100 are90 out of 100 are
cured.”cured.”
72. July ’08 NBC News/Wall Street
Journal poll:
Who would be the riskier choice for
president?
Who would be the safer choice for
president?
Barack Obama 55%
John McCain 35%
Barack Obama 41%
John McCain 46%
73. Both of these questions were
asked in the same poll atsame poll at
the same time of the samethe same time of the same
peoplepeople..
If the framing of the question
had no effecthad no effect on people, the
responses here should just
mirror each othermirror each other.
74. 16.Priming Bias:16.Priming Bias:
What we see orWhat we see or
hearhear
immediatelyimmediately
before a choicebefore a choice
affects how weaffects how we
behave.behave.
75.
76. When a national survey
included this question, it
increased purchase rates byincreased purchase rates by
35%.35%. Remember the cafe
example from earlier. Just by
seeing the phrase “Have you“Have you
tried the carrot cake”tried the carrot cake” when
logging in to the wireless
network increasesincreases the
likelihood you’ll buy some.
80. The authors talk about the
Spock-HomerSpock-Homer empathyempathy
gap.gap.
Your plannerplanner does not
fully appreciate how
much your behaviors are
altered when you are
under the influence of
temptationtemptation.
82. But our HomerHomer is in there, reacting
instinctively to many things, like
which things are at the beginningbeginning
versus the end, and which things
are upup at eye level and which are
belowbelow.
In fact, in one study mentioned in
the book, the researchersresearchers were
able to increaseincrease or decreasedecrease
selectionselection of specific foods by
25%, just by rearrangingrearranging them.
84. You also have a third system...
Mindless choosing:Mindless choosing: your autopilot
just continues doing what it’s used to
- driving the same route, or
continuing to eat when there’scontinuing to eat when there’s
food in front of you.food in front of you.
There was one study mentioned in the
book where participants were given very
stale popcornstale popcorn, either a large baglarge bag or a
small bagsmall bag, and then watched a moviewatched a movie.
Participants with the large bag ate 34%large bag ate 34%
more,more, just because it was there and they
were on autopilot.on autopilot.
87. We like to conform. This is at the root
of speculativespeculative bubblesbubbles, internetinternet
memes, and fads.memes, and fads.
One phenomenon that drives us to
conform is the “spotlight effect,”“spotlight effect,”
which makes us feel like people are
paying closer attentioncloser attention to us--
especially when we’re not
conforming--than they really are.
(I have a feeling this dude with thedude with the
removerremover thinks everyone is paying
attention to him.)
88.
89. One particularly interesting
ramificationramification of the herdherd behavior is
its effect on popularity lists.
One experiment offered different
groups of people the same set ofsame set of
downloadable mp3smp3s with visible
popularity data.
In the end,In the end, the most popular songs
for each group were not predictable
and were not similar from group to
group, except that they were luckyexcept that they were lucky
and pickedand picked by the first users of the
system.
99. MIND MappingsMIND Mappings means
how we translate data
about an option into what it
actually means for us.
Like translating kilowattskilowatts of
energy into dollarsdollars on the
electricity bill, or translating
megapixelsmegapixels to maximum
print sizeprint size.
102. Not new to us - defaults aredefaults are
POWERFULPOWERFUL because of the
Status QuoStatus Quo bias.
You can default to opt-in,opt-in,
opt-out,opt-out, or mandatorymandatory
choicechoice (which is like having
yes/no radio buttons with
nothing selected).
104. NudgesNudges are about
designing choicesdesigning choices to
try to help peopletry to help people
make choices more
with their rationalrational
mind (their inner
SpockSpock) and less with
their gut.gut.( their inner( their inner
HomerHomer))
105. There are certain situations:
Benefits nowBenefits now, cost latercost later;
decisions we have to
make infrequently, places
where the feedbackfeedback isn’t
immediate or the outcome
is hard to imagineimagine, where
the HomerHomer in us has the
upper hand,
106. and we can use our
knowledge of ourknowledge of our
predictable psychologypredictable psychology in
these ways mentioned:
1.Incentives,1.Incentives,
2.2.UnderstandingUnderstanding
3.Mindmappingsmappings,
4.Defaults,4.Defaults,
5.5.Giving feedbackGiving feedback, and
6.Structuring complex choices6.Structuring complex choices
to nudge our Spocknudge our Spock to rebalancerebalance the
power.