Choice architecture

Indian Economy glossary

Topic: Schools of Economic Thought and Economic Laws · NCERT: Beyond NCERT

Meaning

Choice architecture is the design of the setting in which people make choices. It covers the order in which options appear, the pre-set choice (the default), and how information is worded (framing). No setting is neutral: some design always shapes what people pick. So governments and firms can arrange choices to push people towards better decisions without banning anything. The idea comes from Richard Thaler and Cass Sunstein's book Nudge (2008).

Example

In a school canteen, fruit is placed at eye level and fried snacks are placed lower down. Children still have both options, but more of them take fruit. The layout of the counter is the choice architecture.

Don't confuse with

  • Nudge: a nudge is one particular change made to the choice architecture, such as a new default or a reminder. Choice architecture is the whole setting, and it exists whether anyone designs it on purpose or not.

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