Reference no: EM133115494

Richard Thaler has famously said, 'nudge for good'. However, there are many instances in a financial or consumer context where people are taken advantage of or are not well informed. This assessment task asks students to utilise their research skills to identify and explore how and what behavioural tactics are employed to persuade people into making sub-optimal or ill-informed choices. Students are also asked to identify potential 'nudge for good' solutions.

Potential topics for exploration include (but are not limited to): insurance products, buying a first home, home loans, gambling, phone contracts, privacy agreements, data sharing, electricity provider contracts, mobile phone contracts, car loans, warranties, pay-day loans, school banking programs, the sharing/gig economy, retirement, aged care living choices.

Directions

a) Define the problem or "sludge", highlighting how cognitive and emotional biases, neuroscience and any other behavioural tactics are used that result in adverse outcomes for people

b) Provide a brief research summary of the problem - ie. how many people are impacted, related policies and changes over time, the market, any information asymmetries, what are the financial implications for the people directly impacted, their household and the country. Statistics, references to policy or reports and data generally is useful to support the scope of the problem.

c) Provide at least two suggestions on ways that the adverse impact can be mitigated- solutions may be presented that involve behavioural insights approaches, education and policy.