Summary IB Economics RWE for choice architecture (behavioural economics)

Choice architecture: organ donation

Default choice:

a.​ People automatically become a donor if they do nothing, they would have to make a
deliberate effort to register as a non-donor.
i.​ Austria
ii.​ Belgium
iii.​ France
iv.​ Hungary
v.​ Poland
vi.​ Portugal
vii.​ UK

Participation rate: 90% of the population

b.​ Non-donor: they automatically become a non-donor and would have to register to become a
donor.
i.​ Denmark
ii.​ Germany
iii.​ US

Much lower participation rate.

Mandated choice: in Illinois (US) to get a drivers license renewed it is mandatory (compulsory) to
answer a question on whether one wishes to be an organ donor.
●​ Result: a rise of 60% to sign up to be an organ donor.
●​ National average for the US: 38%. → Absence of mandated choice.

Nudges: they may backfire and give rise to opposite results.

2016 Law in the Netherlands → nudged people to automatically become donors. Changed the default
choice.
●​ Result: six times as many non-donors.
●​ Political reaction of the public after excessive press coverage of the government’s decision.