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Choice architecture


Choice architecture is the design of different ways in which choices can be presented to consumers, and the impact of that presentation on consumer decision-making. For example, the number of choices presented, the manner in which attributes are described, and the presence of a "default" can all influence consumer choice. As a result, advocates of libertarian paternalism and asymmetric paternalism have endorsed the deliberate design of choice architecture to nudge consumers toward personally and socially desirable behaviors like saving for retirement, choosing healthier foods, or registering as an organ donor. These interventions are often justified by the fact that well-designed choice architectures can compensate for irrational decision-making biases to improve consumer welfare. These techniques have consequently become popular among policymakers, leading to the creation of the UK's Behavioural Insights Team and White House "Nudge Unit" for example. While many behavioral scientists stress that there is no neutral choice architecture and that consumers maintain autonomy and freedom of choice despite manipulations of choice architecture, critics of libertarian paternalism often argue that choice architectures designed to overcome irrational decision biases may impose costs on rational agents, for example by limiting choice or undermining respect for individual human agency and moral autonomy.

The choice architecture term was originally coined by Richard Thaler and Cass Sunstein in their 2008 book Nudge: Improving Decisions about Health, Wealth, and Happiness. Thaler and Sunstein have endorsed thoughtful design of choice architecture as a means to improve consumer decision-making by minimizing biases and errors that arise as the result of bounded rationality. This approach is an example of "libertarian paternalism", a philosophy endorsed by Thaler and Sunstein that aims to "nudge" individuals toward choices that are in their best interest without limiting choice. Libertarian paternalism may also be described as soft paternalism.


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