PASSIVE METHODS WITH PRACTICAL EXAMPLES IN BEHAVIORAL ECONOMICS: DEFAULT AND CONTEXTUAL EFFECT

In this article, methods of behavioral economics are introduced. Passive methods involve the attitudes of individuals to problems based on system 1. It is divided default and context effect. The default implemented with opt-out, status quo, auto-registration methods answers the question of what happens when a person does nothing. The context effect reflects the solution of the person's problem by associating them with an answer from the environment. Social approval, anchoring, mental short cuts, compromise and halo effect are contextual methods. It is important that the the choice architecture is to construct the nudge of the habit to be desired. The nudge brings to mind the desired work, converts it into automatic behavior, and should be a trigger for discomfort if not performed. These methods help the behavioral economist to construct the nudge