Review of Behavioral Economics > Vol 11 > Issue 3

Decisions Affecting Choices: Current State and Future Directions for Applied Choice Architecture Research in Economics

Magnus Aagaard Skeie, The School of Business and Law, University of Agder, Norway, miskeie@uia.no
 
Suggested Citation
Magnus Aagaard Skeie (2024), "Decisions Affecting Choices: Current State and Future Directions for Applied Choice Architecture Research in Economics", Review of Behavioral Economics: Vol. 11: No. 3, pp 395-429. http://dx.doi.org/10.1561/105.00000194

Publication Date: 08 Jul 2024
© 2024 M. A. Skeie
 
Subjects
Behavioral economics,  Experimental economics,  Individual decision making,  Consumer behavior
 
Keywords
JEL Codes: C90, D01, D90
Choice architecturenudgebehavioral economicsexperimentsystematic literature review
 

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In this article:
Introduction 
Background 
Methodology 
Results 
Synthesis 
Conclusion 
References 

Abstract

Choice architecture (CA) is the design of decision-making environments. Experimental studies of CA interventions like nudges have been used to inform public policymaking. However, the generalizability of such experiments has been challenged frequently, and the welfare implications of paternalistic interventions like nudges are not self-evident. I conduct a systematic literature review of 52 publications from the Scopus and Web of Science databases to evaluate extant applied CA research in economics from an experimental design perspective and suggest future directions enabling more robust and welfare-enhancing policymaking. I reveal a notable absence of discussions pertaining to both internal and external validity and a predominant reliance on Western participants. Key recommendations include pivoting toward Pareto improving “signpost” interventions and increasing the focus on economic significance. I contribute to the literature by novelly adopting an experimental design viewpoint and broadening the review scope beyond nudges to provide deeper insights into the associated welfare implications.

DOI:10.1561/105.00000194