Duke Law and Economics Society.
​Fifth Annual Triangle Law and Economics Conference​.
#1: ​Intro.
What is "choice architecture?" As it turns out, everyone is a choice architect. Every choice has an implicit "frame"–there is no such thing as a neutral choice environment. The question then is how to use choice architecture to provide consumers with the "behaviorally informed" information they need to make the right choices.
#2: ​Application.
For regulation to help people make better choices, the symptoms (the bad choices), causes (erroneous heuristics and biases), and treatments (regulatory interventions) must be discerned. Not surprisingly, putting in place the proper regulations is a lot like visiting your primary care physician.
#3: Healthcare.
Will the healthcare exchanges produce good choices, at lower costs? That may depend on whether consumers pick the best plan for their needs. People tend to weigh co-pays and deductibles too heavily in their decision-making. The choice architecture in this context must therefore have smart default options, and not be too complex.
#4: Life/Death.
Knowing your longevity is extremely important to make well-informed decisions. What age do you think you'll live to be? At what age do you think you'll die? Your answers should be the same. If they weren't, don't feel too bad. People's answers differ by an average of 10 years. This shows the effect of framing.
The Keynote Address:
Eric Johnson.
Professor, Columbia Business School