Designing for Irrational Choice

[phk]

http://blogs.harvardbusiness.org/sviokla/2009/08/design_your_customers_decision.html

In a blog posting @ HBS, they explore the popularity of behavioral economics.  A subject that I have discussedwith ag and I'm quiet an adherent of (in the sense of libertarian paternalism to provide "nudges"). Nudge is a reference to a book.

John Sviokla talks about how choice architecture can be designed to "nudge" people toward a more favorable outcome, particularly how choice architectures can be designed to counter information overload.

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[ag]

Traditional economics says that lowering the marginal price from $2 to $1 should have a similar effect to lowering it from $1 to $0

"Traditional economics" says nothing of the sort - never has, never will.