A

Actor-Observer Bias (Fundamental Attribution Error): tendency to

attribute own successes to character and the successes of others to the
situation, while own failures are blamed on the situation and those of
others, their character. e.g. If someone cuts me off in traffic, they're a
jerk. If I cut into traffic it's because I am a good driver who is being
smart.

Adaption: tendency for the impact to wear off the more something is

experienced. Like when you put clothes on - at first you are aware, then
you forget. In business, people readily and quickly adapt to annual pay
increases.

Affect Heuristic: how we feel determines our beliefs. If I feel good

around someone I will think they are a good person. 

Ambiguity: We tend to avoid options where incomplete information

makes the choice feel risky. People dislike ambiguous calls-to-action on
a website for instance. "Grab your copy" doesn't help them understand
whether they need to pay.

Anchoring: We base decisions on information that has been previously

introduced even if it's irrelevant. If a customer sees a low price first, for
example, they will find subsequent prices more painful. Related blog.

Attentional Bias: We tend to focus on only one or two choices even

when there are several possible outcomes. Much like horses that wear
blinkers, we can become very narrow in our consideration set.

Authority: tendency to defer to someone who seems to be in

authority. In a crisis, people tend to look for anyone in uniform even
though they may not be best placed to make decisions. In business,
sales staff can use authority with customers to persuade, customer
service staff can use on calls to calm, and managers can use to set a
direction for the team to follow.

Availability Bias: information that easily comes to mind tends to be

over-weighted in its importance. A familiar brand, for example, may be
chosen by default when a customer doesn't know much about the
product category.

Availability Cascade: a simple idea gains popularity because of how

simple it is, then seems even more simple because of how popular it is.
"Fake news" seems to have fallen into this category.

Backfire Bias: we reject evidence that contradicts our point of view

even if we know it's true. In this case, we dig in and become even more
committed to our point of view. You see this a lot in politics!

Bias Blind Spots: we fail to see our own cognitive biases.

Sure, other people might be irrational, but I'm not! Yes, you are.

Biases: Systematic 'errors' in decision-making. In effect, the mental

short-cuts we make mean we are not always acting rationally, and
these paths become so ingrained we end up with a fixed bias.  See also
Heuristics.

Bounded Rationality: our rationality has limits. In other words,

sometimes we make the sensible decision according to the economic
theory of rationality, but most of the time we make good enough,
'irrational', decisions. This is central to how we see ourselves and our
customers. We assume too often people will act rationally when that is
usually not the case.

Centre Stage Effect (a.k.a Goldilocks Effect): tendency to prefer the

middle option. Not too hot, not too cold! That means you need to
present your highest margin option in the middle. Related blog.

Certainty (Zero risk) Bias: we are influenced more by smaller changes

in probability that provide certainty than larger changes that do not. ie
99% to 100% is better than 50% to 60%. People particulalry like
certainty when the outcome is going to be positive. As soon as it is
negative, they are more likely to roll the dice. Related blog.
Choice Architecture: structuring choices so optimal decisions can be
made. That means how many options and in what sequence.

Choice Bracketing: tendency to focus on the impact of individual

choices rather than the consequences of many choices taken together.
So people might focus on buying in one product category, and then
another without acknowledging they have blown their budget.

Choice Overload: more choices can result in less choosing we we get

overwhelmed. See also Paradox of Choice.

Choice Supportive Bias: we think positively about a choice once made

even if it has flaws. For example, a manager may back a candidate
they've selected even though their performance is below expectation.

Clustering illusion: we tend to identify patterns where none are

present. People see patterns in the stock market when it is mostly
random.

Cognitive Dissonance: the tension we feel when our actions and

beliefs are not consistent. Dissonance can lead to people (consciously
or otherwise) to change the story e.g. Lance Armstrong continued to
believe he was an honest and worthy person even though he cheated.
How? By telling himself that he was simply rebalancing the ledger after
his cancer treatment, and launching the Live Strong Foundation. In
business, it can also lead people to buy things to alleviate tension
between who they are and what they do e.g. I'll take out a gym
membership even through I don't do.

Commitment Devices: tools to lock us in to our intended behaviour.

As enforced savings, superannuation is a commitment device.

Completion Bias (a.k.a. Endowed Progress): we are driven to

complete tasks once we have started. In business that means giving
your customer a sense of momentum rather than starting from scratch
e.g. pre-populated forms and reminding them of steps already
undertaken. Related blog.

Confirmation Bias: we tend to seek information that confirms rather

than contradicts our view. A customer will believe statistics that support
their intended purchase  (e.g. red wine in good for you) but ignore
those that don't (e.g. red wine is bad for you).

Conjunction Fallacy: we tend to believe the probability of two specific

events happening is greater than a more general one. For example, it's
more likely for an introverted middle-aged man who likes to read and
owns two cats to be an accountant who is single than just an
accountant.

Conservatism Bias: reliance on prior evidence rather than new

information e.g. the prevailing view for many years was that the world
was flat.

Contra Free Loading: tendency to pay for things we value and work for
reasons other than money. This runs counter to economic theory which
suggests people would never volunteer, for example, because we all
want to maximise our economic outcomes.

Curse of Knowledge: the more informed of us don't get why others

cannot understand. This is a trap for anyone who reads a lot about
behavioural economics, for example, and can't convince others of its
value!

Decoupling: tendency to separate the cost from the benefit over time.

For customers, that means they'll typically forget the cost of the couch
they sit on every night. Related blog.

Decision Quicksand: The tendency to seek additional information

when an easy decision becomes unexpectedly difficult. That means a
customer who thought they knew what they wanted, but got confused
when speaking with your staff or visiting your site, may request more
and more information while getting further and further away from a
decision. Frustrating for you both! Related blog.

Decoy Effect: we can be persuaded to change our preferences

between two choices when a third option is presented.  If a customer is
vaciliating between red and white wine, for example, they are more
likely to go with red if they are offered either a 2016 Shiraz or 2019
Shiraz because the decision shifts from which wine to which vintage of
red wine.

Default Bias (a.k.a. Status Quo Bias): tendency to want things to stay

the same, selecting the default option where available. People tend to
say in the superannuation fund they were first defaulted into, for
example.

Denominator Neglect: we focus on the number of times something

has happened rather than the overall number of opportunities for it to
happen. So 2 recent plane crashes will stick in the mind more than the
percentage that represents of all flights in that period. For customers,
reading 3 bad reviews means more than knowing that is across 10,000
transactions. Related blog.

Depletion Effect: the more decisions we make in a day the more our

capacity to make new ones is reduced. We are like batteries, and
decision-making drains our brain power. See also Ego Depletion.

Diagnosis Bias: we jump to an initial assessment from which it is

difficult to change. You might think the problem with your website is a
lack of videos when it may actually be the language on your call-to-
action buttons.

Disfluency: when information is difficult to process it interrupts

processing fluency and increases perceived effort. White text on a black
background, for example, can inhibit a website visitor's fluency. See
also Processing Fluency. Related blog.

Disposition Effect: our tendency to sell shares whose price has

increased, while keeping assets that have dropped in value to avoid
being reminded of 'failure'. Likewise, people tend to put off pulling the
pin on a project (or business) to avoid having to come to terms with the
loss. Customers might keep paying gym or diet memberships so they
don't have to admit defeat!

Distinction Bias: we value two options differently when looking at

them together rather than separately. If I meet twins I will see each of
them differently than if I meet one on their own. A customer might
value a tie less highly than if they see it in combination with a shirt.
Diversification Bias: we overestimate the amount of variety we'll
actually need in the future. If you've ever packed for a holiday this will
be familiar! A customer might be attracted to more functions on a
device than they'll ever actually use.

Drop in the Bucket Effect: tendency to not act if the impact of a

personal contribution is not easily discerned. In other words, if I feel my
donation won't end poverty, I won't bother. In business this can mean
staff don't act if they feel no one values their contribution.

Dual Process Theory: Conceptualisation of how we process

information using two thinking systems; fact-based, deliberate and
logical System 2, and emotion-based, impulsive, and intuitive System 1.
Imagine you setting your alarm for the morning - that's your System 2.
Now imagine hitting the snooze - that's System 1! Your customers and
colleagues will be using System 1 most of the time...as will you.

Duration Neglect: When the duration doesn't factor into the

valuation. For customers, they will be more attracted to $10 a month
for 2 years than $20 a month for one, for example.

Effort vs Reward: my conceptualisation of the two elements of

behavioural influence; resources expended compared with the payoff.
For behaviour to happen, R must exceed E.

Ego Depletion: tendency to make easy (default or impulsive) decisions

once System 2 (our brain's police officer) has been exhausted. This is
why supermarkets place lollies at the registers! See also Depletion
Effect.

Empathy Gap: our inability to understand people in a different

emotional state to us. If you are well rested you might not understad
why your sleep-deprived colleague is struggling to decide. See also Hot-
Cold empathy gap.

Endowed Progress (a.k.a. Completion Bias): we are driven to

complete tasks once we have started. Give your customers a sense of
momentum so they are less inclined to walk away. Related blog.
Endowment Effect (Ikea Effect): we value things to which we have
contributed more and demand much more to give them up than others
are willing to pay. If you've ever tried to sell your house or car, chances
are you will have valued it higher than others, at least initially, because,
well, it's yours and you know how great it is!

Focussing Illusion: whatever we are thinking about at that moment

seems more important than at any other time. We often can't imagine
the project that is consuming us ever not being so important. And yet,
give it a week, a month...

Framing: tendency to draw different conclusions depending on how

information is presented. In short, how you say something is as
important as what you say. 97% fat-free is more enticing than 3% fat,
for instance. Related blog.

Free: we act with disproportionate force when something is free and it

can be enough to persuade us to change our behaviour. Why? There's
no downside. That means customers might take something that is free
that they wouldn't if they had to pay. The challenge, however, is they
may not value it as highly. Why? There's no skin in the game. Related
blog.

Frequency Illusion: something you've just learned appears to be

everywhere. Suddenly you see people doing irrational things
everywhere, for example!

Goldilocks Effect (a.k.a. Centre Stage Effect): tendency to prefer the

middle option. Not too hot, not too cold! That means you need to
present your highest margin option in the middle. Related blog.

Halo Effect: we carry judgments about one characteristic over to

another. A staff member who is good at presenting, for example, is
good at all parts of their job. For customers, a good (or bad) interaction
with you will shape their perception of your business.

Hard-Easy Bias: we tend to be overconfident on hard problems and

not confident enough for those that are easy.

Hedonic Framing: two separate gains are more valuable than one

large gain of equal value, whereas two separate losses are more painful
than a single loss of equal value. So giving your customers or staff two
smaller bonuses will be more highly regarded than a once-off, whereas
raising prices twice a year is worse than once.

Herding (Bandwagon Effect): tendency to base actions and beliefs on

what others are doing or believing. If everyone else seems to be going
vegan, I will too. See also Social Norms.

Heuristics (Rules of Thumb): governing cultural, social or personal

'rules' we live our lives by. These mental short-cuts save mental energy
but may be sub optimal. Eg Price=quality; private label brands are
cheaper

Hindsight Bias: we trick ourselves into believing we "knew it all along"

rather than admit error. Watch any post election review and you'll hear
people who claim they predicted the result...but must have kept it to
themselves!

Hot-Cold Empathy Gap: our tendency to believe we will always make a

decision based on how we feel right now. I won't be able to imagine
myself getting cranky and binging on chocolate next week when I feel
calm at the moment. 

Hyperbolic Discounting: a 'bird in the hand is worth two in the bush'.

We tend to value a gain we receive now more than a larger gain
available in the future i.e. give me $100 today rather than $110 in a
year's time. See also Short-term Bias.

I
Illusion of Control: we overestimate our ability to control events. You
might think turning up to a sporting event will change the odds your
team will win, for example. 

Illusion of Validity: we tend to believe our predictions are valid despite

contradictory evidence e.g. we believe we are great at spotting talented
recruits despite them not living up to expectation.

Impact Bias (Affective Forecasting Error): we overestimate how

happy or sad we will feel in the future about a gain or loss. In truth,
lottery winners and victims of trauma often revert to their pre-event
level of contentedness. It means customers might overestimate how
great the new car/device/relationship will make them feel, but also
overestimate how rotten life will feel if they lose out on something they
want.

Information Avoidance: "head in the sand" avoidance of information

that would result in a negative outcome. Unfortunately business and
political leaders often don't want the bad news.

Inter Group Bias: we view people in our own group differently than
someone in another group. This can lead to discrimination and bullying
if not carefully managed.

Inter-temporal Choice (a.k.a. Short term or Present Bias): we tend

to focus on the immediate result of a decision over what the future may
be. Give me ice-cream now and I promise I'll eat salad for the rest of the
week. It means you need to give your customers a benefit in the
immediate term - waiting for a future payoff is not enough.

Irrational Escalation: investing more in something based on the past

even if we know its bad, throwing 'good money after bad'. For example,
pouring money into a new product even after a competitor has
launched a superior alternative.

Judgment Heuristic: the methods we use to simplify our decision-

making and assessments of probability. We make judgments, often on
the basis of intuition or limited information.
Just World Hypothesis: our desire to believe that a higher power,
karma, forces of justice or stability guide situations. We might think
karma will deliver customers to our door.

Loss Aversion: we prefer to avoid losses because they are 1.5-2.5 times
as painful as gains are pleasurable. Think of the difference between a
first and second serve in tennis - the second is slower and more
conservative becase we'd rather not lose the point than win it win an
ace. Customers will be more worried about what they lose by doing
business with you (time, money, reputation, energy) than gain. Related
blog.

Mary Poppins Principle: my description of Temptation Bundling,

where you improve the likelihood of action by bundling a "want to do"
with a "should do" i.e. spoon full of sugar helps the medicine go
down. Related blog.

Mental Accounting: tendency to think of the world in terms of specific

accounts where value in one account is different to other. I might
refuse to buy an avocado for $5 when it's usually $2.99 but then happily
blow $5 on a box of muesli bars because that is in a different mental
bucket. Knowing which mental accounts your customers can access is
important to get the sale.

Mood Heuristic: our mood affects ratings and judgments. A happy

customer will rate you differently than one that is feeling sad,
regardless of service quality.

Narrative Fallacy: the way we have constructed our story of the past

leads to imperfect decisions in the future. If I see myself as someone
who is independent I may find it difficult to ask for help when I need it,
for example. Likewise, if I beleive a company has always performed
above market, I may think they will continue to.
Negativity Bias: we place more emphasis on negative experiences
than positive. A bad meal is more remarkable than a good one.

Not Invented Here Bias: tendency to dismiss the ideas of others. You

may see this in workplaces where people are very interested in their
own ideas but less so when it comes to those of their colleagues.

Observer-Expectancy Effect: our expectations influence how we

perceive an outcome. If I expect a product to be hard to use then that's
what I will probably find.

Omission Bias: we tend to judge harmful actions as worse than equally

harmful inactions. Someone who lies is worse than someone who
neglects to tell the truth.

Outcome Bias: we judge a decision on the outcome rather than the

quality of the decision, ignoring the role luck plays. If an entrepreneur
hits the big time, we believe it's because of their genius rather than
being in the right place at the right time. We tend not to hear about
equally smart people who were simply unlucky.

Over Optimism: tendency to think the world is better than it is, leaving

us unprepared for danger and vulnerable to disappointment. We
ignore the rate of small business failures, for example, believing the
statistics don't apply to us.

Over Confidence: we are too confident in our abilities which causes

risk taking in every day lives. We might drive too fast or drink too much
believing we are invincible.

Paradox of Choice: we like the freedom to choose but can get

overwhelmed by it. Customers will therefore be attracted to shops with
a bigger range but then struggle to make a decision. Same goes for
empty car parks - it can take longer to park! See also Choice Overload.
Peak/end Rule: when recalling an event, we make a judgment on the
basis of the two most significant moments - the peak (highest intensity)
and end. That means you should focus on these two parts of the
customer experience. Related blog.

Pessimism: tendency to overweigh negative consequences. Some

people are glass half-empty types who overestimate how badly things
may go (great if you are selling them insurance).

Placebo Effect: self-fulfilling prophecy where own beliefs cause

something to happen. People may believe a tablet helps them feel
better when in fact it has no active ingredients, for example.

Planning Fallacy: tendency to underestimate the length of time

something will take, overestimate benefits and underestimate costs.
This is the cause of most project mis-management.

Possibility Effect: tendency to overweight the importance of highly

unlikely events. People who are risk-averse are often good at raising
such possibilities and it can be difficult to dissuade with statistics.

Pre Decisional Distortion: tendency to 'imprint' on the brand initially

favoured due to a specific attribute and then sequentially judge other
brands relative to that lead brand e.g. Brand A is known for it's great
customer service, so may be preferred to Brand B who isn't, but which
offers better functionality.

Priming: our acts are often influenced by sub-conscious cues. Think of

a day spa - they prime us to relax by having soft furnishings, gentle
music and lovely fragrances. Related blog.

Procedural Fairness: we tend to accept an outcome if we believe the

process has been fair. A customer will be less likely to get angry if they
believe the process has been impartial and transparent. Related blog.

Processing Fluency: the ease with which information is understood

can impact behaviour.  White text on a black background can impair
online fluency for your customer, for example, and make them think
working with you is harder than it really is. See also Disfluency. Related
blog.
Prospect Theory: seminal theory in behavioural economics which
posits we make judgments relative to reference points and losses are
more influential than gains. In other words, we use comparison to
determine how good we think something is.

Recency: we weight the latest information more heavily than older

information. What plays on our mind tends to shape our reaction. 
When it comes to structuring information for customers or
stakeholders, that means ending on a high so that's what they'll
remember. A customer who is given a chocolate as they leave a hotel
will remember that hotel fondly.

Reciprocity: social pressure to return a favour in kind. When someone

offers you their hand to shake, you reciprocate because it would
otherwise be a social affront. Related blog.

Regression to the Mean: tendency for aggregate behaviour to be

drawn close to the average. When people were told they used less
power than their neighbours, for example, they used more and
regressed to the average. 

Relativity: everything is judged relative to something else and we

prefer to use obvious rather than difficult points of comparison. There's
a reason we say "I want to compare apples with apples".

Remembering vs Experiencing self: we are persuaded by not only the

experience but our memory of it. We tend to think what we did and
how we remember it are the same when they are different. A customer
might swear something happened because that's how they remember
it, not necessarily how they experienced it.

Representativeness (Belief Bias): we assume things with some

similarities are more similar than they really are. Often we think people
who look like us or share a similar educational background will think
like us when they may not.

Restraint Bias: we overestimate our ability to show restraint in the

face of temptation. That means we can easily undermine our goals by
placing ourselves in the wrong environment, thinking it won't be a
problem. Going to the pub and expecting not to drink or buying
chocolate and keeping it in the pantry are just two examples. Instead
we need to anticipate weak restraint and plan accordingly.

Revenge: we will act to punish another due to perceived wrongdoing.

Examples may include tailgating a driver who cut us off in traffic,
refusing to support a rival's promotion or a customer bad mouthing a
business who didn't give them what they wanted.

Salience: we focus on easily recognisable or memorable features of a

person or concept. That stands out gets our attention. When writing an
email or letter, that means making the most important points stand out
e.g. call out boxes. When presenting to a group, interesting visuals or
props can help.

Scarcity: tendency to value something more if it is rare. Our fear of

missing out means things in limited supply (quantity or time) become
attractive. In Australia, infant milk formula has become very scarce and
coveted as a result.

Seer Sucker Illusion: we rely too heavily on expert advice, avoiding

responsibility. Instead of making a considered decision, we often defer
to the views of charismatic politicians, pundits or business leaders.

Selective Perception: we allow our expectations to influence how we

perceive the world. If I expect everyone to be mean to me then I will
likely perceive the world as an unfriendly place.

Self-Enhancing Transmission Bias: we share our successes more than

our failures, creating a false perception of reality and an inability to
accurately assess situations. These days, it's social media culture where
people curate an artifically positive narrative of their lives.

Self-Herding: tendency to follow decisions we have taken before. If I

chose this brand last time, then I will this time too.
Short-Term Bias (a.k.a. Present Bias, Inter-Temporal
Bias): Preference for immediate gratification and to defer bad news till
later. Give me ice-cream now and I promise I'll eat salad for the rest of
the week. It means you need to give your customers a benefit in the
immediate term - waiting for a future payoff is not enough. See also
Hyperbolic Discounting.

Social Norms: tendency to follow what others do, the 'normal;

behaviour in a situation. When in doubt, I'll buy from the 'best sellers'
list, for example, because other people have trusted that product or
brand. See also Herding.

Status Quo Bias (a.k.a. Default Bias): tendency to want things to stay

the same, selecting the default option where available. People tend to
say in the superannuation fund they were first defaulted into, for
example. Related blog.

Stereotyping: we expect a group of people to have certain qualities

without having any real information about the individuals. "All vegans
are hippies", for example.

Sunk Cost Fallacy: tendency to maintain possession of a position or

item because of the resources already put in rather than give it up.
People are more likely to invest in a project that has no hope of
succeeding if it has already started than if it has not yet commenced,
for instance. This is a big problem in managerial decision-making. For
customers, it means they may be loath to discard their old widget even
though you can offer them a better one.

Survivorship Bias: our focus is on examples of things that have

survived. In health, we focus on the rates of recovery and in business,
the rates of success rather than failure.

System 1: fast, intuitive, automatic, habitual, instinctive thinking. Vast

capacity 11,000,000 bits of information can be processed per second. It
is "one" because it came first - it is an older, more primitive thinking
process. When driving somewhere familiar, System 1 is steering.
System 2: slow, rational, logical and fact driven thinking. Limited
capacity, only 40-50 bits of information can be processed per second.
When driving somewhere unfamiliar, System 2 is steering.

Temptation Bundling (a.k.a. Mary Poppins Principle): improving the

likelihood of action by bundling a "want to do" with a "should do" e.g. I
can only watch my favourite TV show (want to do) while at the gym
(should do). Related blog.

Tragedy of Commons: we overuse common resources because it is

not in our individual interest to conserve them. In a workplace or hotel,
for example, people might not care about how much water and power
they use compared to when they are at home and responsible for their
usage.

Transaction Utility: we are predisposed to pay more for something

that we visualise in an expensive setting. If I imagine myself wearing a
dress to an expensive dinner I may pay more than if it was for use at
home.

Uniqueness: we prefer to think we are unique, and will react against

forces that compromise our sense of individuality. This is the danger in
telling people they are being influenced by other people (social norms) -
you will experience reactance and the individual is likely to go in the
opposite direction. Remember, we are not unique in thinking we
are! Related blog.

Unit Bias: the belief that there is a universally agreed optimal unit size.
This impacts how much we consume of something because people
tend to finish their portion regardless of size. It means I might have one
glass of wine at home, but that glass is the equivalent of three standard
drinks. I count one not three. 

Up/Down Congruence: matching value representations to the head

(up) and heart (down). In other words, analytical messages are better at
the top of a page (head), and emotional ones below (heart). Related
blog.

Visual Depiction Effect: tendency to be persuaded by images oriented

for use. A spoon on the right hand side of a tub of yogurt in an
advertisement is more compelling than on the left because it is easier
for the customer (who is more likely to be right-handed) to imagine
eating. Related blog.

Vividness: tendency to respond to something that stands-out. When

writing an email or letter, that means making the most important
points stand out. In presentations, a vivid story can help your audience
become engaged. 
Introduction to Behavioual Science - Biases and Heuristics
Source: https://www.tutor2u.net/economics/reference/

Background
Why to humans make the decisions we do? More often than not, our intuitions are wrong and
our brains use incorrect reference points. So we struggle to think in absolute terms and we’re
rarely rational.
Bounded rationality is the idea that the cognitive, decision-making capacity of humans
cannot be fully rational because of a number of limits that we face.
These limits include:
 Information failure – there may be not enough information, or it may be unreliable, or
maybe not all possibilities or consequences have been considered
 The amount of time that we have to make our decisions
 The limits of the human brain to process every piece of information and consider ever
possibility
The result is that we usually end up making satisficing decisions, rather than optimizing
decisions. To make decision, we end up using “rules of thumb” or heuristics. Sometimes we
rely on automatized routine too.
The impact of bounded rationality is that contracts cannot be fully complete in order to cover
all possibilities, and this suggests that markets rarely work perfectly.
Behavioural economists generally point out that bounded rationality is not the same as
irrationality, because decision-makers are still attempting to make as rational a decision as
possible.

By understanding how humans behave and make decision, we can influence their behaviour
for the good.

This is known as a nudge: a technique used by choice architects in order to change

someone’s behaviour in a very easy and low-cost way, without reducing the number of
choices available. We often see it described as “non-enforced compliance”.
Choice architects and policy makers aim to change people’s behaviour and alter their
decisions more effectively using a nudge rather than relying on fresh pieces of legislation or
direct enforcement. It has been described as “libertarian paternalism”.
Nudge theory is generally used to describe situations where nudges are used to improve the
life and wellbeing of people and society.
President Obama established the White House Social and Behavioural Sciences Team and
the UK government has the Behavioural Insights Team (BIT) – these make active use of
nudge theory to improve social outcomes.
Anchor and Adjust
Framing
Sunk Cost Fallacy
Priming