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Default Effect
The default effect, a concept within the study of nudge theory, explains the tendency for an agent to generally accept the default option in a strategic interaction. The default option is the course of action that the agent, or chooser, will obtain if he or she does not specify a particular course of action. The default effect has broad applications for firms attempting to "nudge" their customers in the direction of the firm's optimal outcome. Experiments and observational studies show that making an option a default increases the likelihood that such an option is chosen. There are two broad classes of defaults: mass defaults and personalised defaults. Setting or changing defaults has been proposed and applied by firms as an effective way of influencing behaviour—for example, with respect to setting air-conditioner temperature settings, giving consent to receive e-mail marketing, or automatic subscription renewals. Default effect Endogenous default effects In a choice context ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nudge Theory
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways to Social influence, influence the behavior and decision making, decision-making of groups or individuals. Nudging contrasts with other ways to achieve compliance, such as education, legislation or enforcement. The nudge concept was popularized in the 2008 book ''Nudge (book), Nudge: Improving Decisions About Health, Wealth, and Happiness'', by behavioral economist Richard Thaler and legal scholar Cass Sunstein, two American scholars at the University of Chicago. It has influenced British and American politicians. Several nudge units exist around the world at the national level (UK, Germany, Japan, and others) as well as at the international level (e.g. World Bank, United Nations, UN, and the European Commission). There is ongoing debate o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Email Marketing
Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It involves using email to send advertisements, request business, or solicit sales or donations. The term usually refers to sending email messages with the purpose of enhancing a merchant's relationship with current or previous customers, encouraging customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and sharing third-party ads. History Email marketing has evolved rapidly alongside the technological growth of the 21st century. Before this growth, when emails were novelties to most customers, email marketing was not as effective. In 1978, Gary Thuerk of Digital Equipment Corporation (DEC) sent out the first mass email to approximately 400 potential clients via the Advanced Research Projec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Default (computer Science)
A default, in computer science, refers to the preexisting value of a user-configurable setting that is assigned to a software application, computer program or device. Such settings are also called factory settings, or factory presets, especially for electronic devices. Default values are standards values that are universal to all instances of the device or model and intended to make the device as accessible as possible "out of the box" without necessitating a lengthy configuration process prior to use. The user only has to modify the default settings according to their personal preferences. In many devices, the user has the option to restore these default settings for one or all options. Such an assignment makes the choice of that setting or value more likely, this is called the default effect. Examples Application software preferences One use of default parameters is for initial settings for application software. For example, the first time a user runs an application it may ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Organ Donation
Organ donation is the process when a person authorizes an organ (anatomy), organ of their own to be removed and organ transplantation, transplanted to another person, #Legislation and global perspectives, legally, either by consent while the donor is alive, through a Authorization, legal authorization for deceased donation made prior to death, or for deceased donations through the authorization by the De jure, legal next of Kinship, kin. Donation may be for research or, more commonly, healthy transplantable organs and tissues may be donated to be transplanted into another person. Common transplantations include kidney transplantation, kidneys, heart transplantation, heart, liver transplantation, liver, pancreas transplantation, pancreas, intestine transplantation, intestines, lung transplantation, lungs, bone transplantation, bones, bone marrow transplantation, bone marrow, skin transplantation, skin, and cornea transplantation, corneas. Some organs and tissues can be donated ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Parole Board
A parole board is a panel of people who decide whether an offender should be released from prison on parole after serving at least a minimum portion of their sentence as prescribed by the sentencing judge. Parole boards are used in many jurisdictions, including the United Kingdom, the United States, and New Zealand. A related concept is the board of pardons and paroles, which may deal with pardons and commutations as well as paroles. A parole board consists of people qualified to make judgements about the suitability of a prisoner for return to free society. Members may be judges, psychiatrists, or criminologists, although some jurisdictions do not have written qualifications for parole board members and allow community members to serve as them. A universal requirement is that board candidates be of good moral fiber. Canada New Zealand United Kingdom In the United Kingdom parole board members are also drawn from a wider circle of professions. The boards typically make a ju ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Segmentation
In marketing, market segmentation or customer segmentation is the process of dividing a consumer or business market into meaningful sub-groups of current or potential customers (or consumers) known as ''segments''. Its purpose is to identify profitable and growing segments that a company can target with distinct marketing strategies. In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles, or even similar demographic profiles. The overall aim of segmentation is to identify ''high-yield segments'' – that is, those segments that are likely to be the most profitable or that have growth potential – so that these can be selected for special attention (i.e. become target markets). Many different ways to segment a market have been identified. Business-to-business (B2B) sellers might segment the market into different types of businesses or countries, while business-to-consumer (B2C) seller ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Transaction Cost
In economics, a transaction cost is a cost incurred when making an economic trade when participating in a market. The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931. Oliver E. Williamson's ''Transaction Cost Economics'' article, published in 2008, popularized the concept of transaction costs. Douglass C. North argues that institutions, understood as the set of rules in a society, are key in the determination of transaction costs. In this sense, institutions that facilitate low transaction costs can boost economic growth.North, Douglass C. 1992. "Transaction costs, institutions, and economic performance", San Francisco, CA: ICS Press. Alongside production costs, transaction costs are one of the most significant factors in business operation and management. Definition Williamson defines transaction costs as a cost innate in running an economic system of companies, comprising the total costs of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rational Choice Theory
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.Gary Browning, Abigail Halcli, Frank Webster (2000). ''Understanding Contemporary Society: Theories of the Present'', London: Sage Publications. Rational choice models are most closely associated with economics, where mathematical analysis of behavior is standard. However, they are widely used throughout the social sciences, and are commonly applied to cognitive science, criminology, political science, and sociology. Overview The basic premise of rational choice theory is that the decisions made by individual actors will collectively produce aggregate social behaviour. The theory also assumes that individuals have preferences out of available choice ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loss Aversion
In cognitive science and behavioral economics, loss aversion refers to a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain. It should not be confused with risk aversion, which describes the rational behavior of valuing an uncertain outcome at less than its expected value. When defined in terms of the pseudo-utility function as in cumulative prospect theory (CPT), the left-hand of the function increases much more steeply than gains, thus being more "painful" than the satisfaction from a comparable gain. Empirically, losses tend to be treated as if they were twice as large as an equivalent gain. Loss aversion was first proposed by Amos Tversky and Daniel Kahneman as an important component of prospect theory. History In 1979, Daniel Kahneman and his associate Amos Tversky originally coined the term "loss aversion" in their initial proposal of prospect theory as an alternative descriptive model of decision makin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Soft Paternalism
Libertarian paternalism is the idea that it is both possible and legitimate for private and public institutions to affect behavior while also respecting freedom of choice, as well as the implementation of that idea. The term was coined by behavioral economist Richard Thaler and legal scholar Cass Sunstein in a 2003 article in the ''American Economic Review''. The authors further elaborated upon their ideas in a more in-depth article published in the ''University of Chicago Law Review'' that same year. They propose that libertarian paternalism is paternalism in the sense that "it tries to influence choices in a way that will make choosers better off, as judged by themselves" (p. 5); note and consider, the concept paternalism specifically requires a restriction of choice. It is libertarian in the sense that it aims to ensure that "people should be free to opt out of specified arrangements if they choose to do so" (p. 1161). The possibility to opt out is said to "preserve freedom of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Affordance
In psychology, affordance is what the environment offers the individual. In design, affordance has a narrower meaning; it refers to possible actions that an actor can readily perceive. American psychologist James J. Gibson coined the term in his 1966 book, ''The Senses Considered as Perceptual Systems'', and it occurs in many of his earlier essays. His best-known definition is from his 1979 book, ''The Ecological Approach to Visual Perception'': The word is used in a variety of fields: perceptual psychology; cognitive psychology; environmental psychology; evolutionary psychology; criminology; industrial design; human–computer interaction (HCI); interaction design; user-centered design; communication studies; instructional design; science, technology, and society (STS); sports science; and artificial intelligence. Original development Gibson developed the concept of affordance over many years, culminating in his final book, ''The Ecological Approach to Visual Percepti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Theory
Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, rationally under uncertainty. It differs from the Cognitive science, cognitive and Behavioural sciences, behavioral sciences in that it is mainly Prescriptive economics, prescriptive and concerned with identifying optimal decision, optimal decisions for a rational agent, rather than Descriptive economics, describing how people actually make decisions. Despite this, the field is important to the study of real human behavior by Social science, social scientists, as it lays the foundations to Mathematical model, mathematically model and analyze individuals in fields such as sociology, economics, criminology, cognitive science, moral philosophy and political science. History The roots of decision theory lie in probability theory, developed by Blai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
