Using Behavioral Economics to Inform Government Policy: Nudges, Choice Architecture, and More

The video explores nudge theory, introduced by Richard Thaler and Cass Sunstein, focusing on libertarian paternalism. It discusses the Nudge Unit's role in UK policy, using examples like tax collection to illustrate social norms' influence. The video covers framing and choice architecture, including default, restricted, and mandated choices, with examples like organ donation and pension schemes. It concludes with a recap of these concepts' importance in current economic research and applications.

What role does social norm play in influencing individual behavior regarding tax payments?

What is the difference between an opt-in and an opt-out system in organ donation?

Describe the concept of mandated choice and its potential benefits.

Summarize the key takeaways from the discussion on nudging and its applications.