Thaler, Sunstein, and Balz (2013), "Choice Architecture"

Richard H. Thaler, Cass R. Sunstein, and John P. Balz, “Choice Architecture.” Chapter 25 in Eldar Shafer, ed., The Behavioral Foundations of Public Policy, Princeton University Press, 2013. 

·  Choice architects are people who arrange the context in which other people make decisions. Contextual details, even seemingly innocuous ones, can have significant effects on choices. “A well-designed system expects its users to err and is as forgiving as possible [p. 7].”

·  Default settings matter; sometimes a mandated choice (as opposed to a default setting with an override option) might be a good idea. Alerts and checklists help to prevent errors.

·  The provision of feedback helps people to overcome mistakes.

·  Do people know the relationship between their choices and their welfare? Do people know the costs of using a credit card? Perhaps standardized disclosures – Record, Evaluate, and Compare Alternative Prices (RECAP) – would lead to better decision making.

·  Can choice be structured so as to facilitate learning? Do you want all your book recommendations to be based on what people similar to you have enjoyed?

·  The salience of a choice dimension goes a long way to determining its impact. Do people make optimal taxi v. car ownership decisions?