BEH 402 – Choice
Architecture and Behavioral
Economics 2025–2026 Complete
Study Pack | Key Concepts,
Decision-Making Models, Nudge
Theory, Applications in
Policy & Business, Case
Studies, Exam-Ready Summaries
| Latest Updated Guide
Choice Architecture - Answer✅The way in which choices are presented or organized to people.
Choice Architect - Answer✅The person or system that designs how options are presented.
Structuring Choices - Answer✅How options are arranged, ordered, or framed.
Improving Understanding - Answer✅Helping people understand the consequences of their decisions
by simplifying complex information.
, Supporting Follow-Through - Answer✅Helping people act on their intentions.
NUDGES - Answer✅Design principles for effective choice architecture as described by Thaler and
Sunstein.
N (iNcentives) - Answer✅Align incentives with desired behaviors.
U (Understand mappings) - Answer✅Help people see how actions lead to outcomes.
D (Defaults) - Answer✅Set good default options that help people without limiting freedom.
G (Give feedback) - Answer✅Provide immediate feedback to improve decision-making.
E (Expect error) - Answer✅Design systems that anticipate human mistakes.
S (Structure choices) - Answer✅Simplify and organize choices clearly.
Default - Answer✅The pre-set option that happens if someone does nothing.
Benefits of Defaults - Answer✅Well-designed defaults benefit individuals and organizations.
Why Defaults Are Necessary - Answer✅Defaults save time and reduce stress while allowing freedom
to change.
Cognitive Overload - Answer✅Too many options can lead to 'choice paralysis.'
Expect Error - Answer✅Anticipate human errors and design systems that prevent harm or confusion.
Car Safety Features - Answer✅Cars that beep if you forget to buckle your seatbelt.
Online Forms - Answer✅Warning messages if you leave a mandatory field blank before submission.
Gas Nozzles - Answer✅Designed so diesel pumps don't fit into gasoline tanks.
Feedback mechanisms - Answer✅Help people learn from their actions and adjust behavior
accordingly.
Fitness trackers - Answer✅Give real-time feedback on steps, heart rate, and sleep, motivating
healthier habits.
Smart meters - Answer✅Show real-time electricity usage, prompting energy savings.
Speed limit signs - Answer✅Give immediate feedback that often leads drivers to slow down.
Commitment device - Answer✅Helps people stick to long-term goals by creating barriers to
impulsive behavior.
Financial commitment device - Answer✅Tie money to behavior, such as apps like StickK where you
lose money if you don't meet a goal.
Social commitment device - Answer✅Publicly commit to increase accountability, like posting your
goal to friends or joining a fitness challenge.
Automated commitment device - Answer✅Technology enforces the commitment, such as automatic
savings transfers from paycheck to savings account.
Architecture and Behavioral
Economics 2025–2026 Complete
Study Pack | Key Concepts,
Decision-Making Models, Nudge
Theory, Applications in
Policy & Business, Case
Studies, Exam-Ready Summaries
| Latest Updated Guide
Choice Architecture - Answer✅The way in which choices are presented or organized to people.
Choice Architect - Answer✅The person or system that designs how options are presented.
Structuring Choices - Answer✅How options are arranged, ordered, or framed.
Improving Understanding - Answer✅Helping people understand the consequences of their decisions
by simplifying complex information.
, Supporting Follow-Through - Answer✅Helping people act on their intentions.
NUDGES - Answer✅Design principles for effective choice architecture as described by Thaler and
Sunstein.
N (iNcentives) - Answer✅Align incentives with desired behaviors.
U (Understand mappings) - Answer✅Help people see how actions lead to outcomes.
D (Defaults) - Answer✅Set good default options that help people without limiting freedom.
G (Give feedback) - Answer✅Provide immediate feedback to improve decision-making.
E (Expect error) - Answer✅Design systems that anticipate human mistakes.
S (Structure choices) - Answer✅Simplify and organize choices clearly.
Default - Answer✅The pre-set option that happens if someone does nothing.
Benefits of Defaults - Answer✅Well-designed defaults benefit individuals and organizations.
Why Defaults Are Necessary - Answer✅Defaults save time and reduce stress while allowing freedom
to change.
Cognitive Overload - Answer✅Too many options can lead to 'choice paralysis.'
Expect Error - Answer✅Anticipate human errors and design systems that prevent harm or confusion.
Car Safety Features - Answer✅Cars that beep if you forget to buckle your seatbelt.
Online Forms - Answer✅Warning messages if you leave a mandatory field blank before submission.
Gas Nozzles - Answer✅Designed so diesel pumps don't fit into gasoline tanks.
Feedback mechanisms - Answer✅Help people learn from their actions and adjust behavior
accordingly.
Fitness trackers - Answer✅Give real-time feedback on steps, heart rate, and sleep, motivating
healthier habits.
Smart meters - Answer✅Show real-time electricity usage, prompting energy savings.
Speed limit signs - Answer✅Give immediate feedback that often leads drivers to slow down.
Commitment device - Answer✅Helps people stick to long-term goals by creating barriers to
impulsive behavior.
Financial commitment device - Answer✅Tie money to behavior, such as apps like StickK where you
lose money if you don't meet a goal.
Social commitment device - Answer✅Publicly commit to increase accountability, like posting your
goal to friends or joining a fitness challenge.
Automated commitment device - Answer✅Technology enforces the commitment, such as automatic
savings transfers from paycheck to savings account.
