Nudge Theory Overview

Explore the key concepts behind the behavioral science theory known as 'Nudge Theory', which suggests that individuals' decisions can be influenced by small changes in choice architecture. Learn about the book 'Nudge: Improving Decisions About Health, Wealth, and Happiness' by Richard H. Thaler and Cass R. Sunstein.

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Questions and Answers

What does 'Nudge theory' propose?

People's decisions can be influenced by small changes in choice presentation

What is the key approach of 'Nudge theory'?

Understanding how people think and make choices to influence decisions subtly

How does placing bottles of water around you relate to 'Nudge theory'?

It nudges people to drink more water by making it easily accessible

What is the main advantage of 'Nudge theory' for businesses?

It offers a non-intrusive way to guide customer behavior and decision-making Signup and view all the answers

How does 'Nudge theory' differ from using coercion or changing incentives?

It relies on cognitive psychology and behavioral economics Signup and view all the answers

In the context of 'Nudge theory', what does nudging customers mean for businesses?

Guiding customers towards desired outcomes subtly Signup and view all the answers

'Nudge theory' is primarily based on which fields of study?

Cognitive psychology and Behavioral economics Signup and view all the answers

According to the passage, what was the key proposition held by employers during the Industrial Revolution regarding labor?

Labor is unreliable, lazy, and requires tight control and close supervision. Signup and view all the answers

What was the primary focus of employers during the Industrial Revolution in terms of profitability?

Reducing labor costs and increasing productivity. Signup and view all the answers

Which school of thought is discussed in the passage?

The Classical School Signup and view all the answers

According to the passage, what was the core proposition of the Scientific–Rational approach?

Organizations are rational entities, and organization design is a science. Signup and view all the answers

Which of the following principles was advocated by the Classical school, according to the passage?

Division of labor and elimination of human fallibility Signup and view all the answers

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Nudge Theory Overview

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